How do Illinois’s Net Metering Policies Work?
According to the Database of State Incentives for Renewable Energy (DSIRE), Illinois’s net metering policy requires that customers who produce electricity using clean power can take advantage of net metering. These customers include homeowners, businesses, and nonprofit organizations, such as schools and local governments.
To qualify for net metering, a customer’s system capacity must not exceed 5 megawatts, and the system must be installed by a certified contractor.
Additionally, investor-owned utilities and retail suppliers have what’s called an aggregate cap, which means they must provide net metering until the load of their net-metering customers equals 5% of the total peak demand supplied by the utility during the previous year.
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Eligibility for Interconnection and Net Metering in Illinois
Once you have obtained solar panels (or other eligible renewable energy equipment) for your home, contact your local utility to apply for interconnection. Interconnection is the process where utility companies verify that a system is safe to connect to the grid.
You will most likely need to sign an interconnection agreement to begin participating in net metering. This agreement states that you and your utility confirm that you are able to sell any excess energy generated from your solar system back to your utility.
Illinois established its interconnection requirements in 2007, when it required investor-owned utilities and alternative retail electric suppliers—but not municipal utilities or electric cooperatives—across the state to offer net metering.
This regulatory policy includes specific interconnection standards that include different levels for investor-based generator systems to qualify.
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Understanding the Illinois Net Metering Program
Illinois’s net metering program allows customers to receive credit on their electric bill for any excess power generated from their renewable energy system.
Here’s how net metering works:
- First, buy and install a renewable energy system that generates electricity. Beyond solar panels, eligible technologies for net metering include wind energy, hydropower, fuel cells and microturbines powered by renewable fuels, and landscape trimmings, among others.
- Any energy that is generated by your system but is not used is returned to the grid.
- Depending on your electricity provider and how your electricity is delivered, any extra energy you generate might be rolled over as credit for future use, or you might be paid for it at a rate based on what it costs the provider to supply electricity.
Customers can get the most out of net metering by optimizing their electricity usage. To do this, think about the times your panels may produce the most energy. These times are considered peak hours, which is when most of your net metering credits will be generated. (think: sunny days).
Ready to enroll in net metering? Once you’ve installed your solar energy system, contact your local utility company to complete the interconnection process.
Benefits of Net Metering
How can you and your community benefit from net metering?
It’s no secret the grid’s infrastructure is aging which means more opportunity for power outages and not meeting everyone’s energy needs. Since solar energy systems are connected to the power grid, however, customers who enroll in net metering programs with their utility providers will help their local Illinois residents whenever they send back energy they don’t use.
What Solar Incentives and Rebates Are Available in Illinois?
In addition to net metering, Illinois provides numerous other financial incentives to homeowners who are looking to invest in solar energy. Those benefits include sales tax exemptions, rebates, home improvement programs, and loan programs, as well as energy-efficient mortgages that make the switch to solar a worthwhile investment. Examples of specific benefits include:
- Solar Renewable Energy Certificates (SRECs)
- Illinois Solar for All Program
- ComEd-Distributed Generation Rebates
New state amendments and laws, such as the Future Energy Jobs Act, support growth in clean energy sectors, which are expected to create future energy jobs.
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Conclusion
Illinois net metering is among a wide range of solar incentives and rebates that work with the federal solar tax credit and help reduce energy bills. This state-wide program can help customer-generators reduce their environmental impact and the strain electric bills put on their wallets.
Net metering also helps to support an aging energy grid, and can reduce the number of power outages. Just Energy can help you take advantage of Illinois Solar Incentives.
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