These financing mechanisms can help companies achieve a full return on investment from solar energy in three to five years, rather than the 20 to 25 years that were typical in the past. Source: www.leanenergyus.org/cca-by-state/illinois/ SolRiver can finance most municipal solar projects that sell electricity to a local government, city or city. A power purchase agreement was also required for 750 kW of solar power, which was installed last fall in the Dearborn Homes public housing estate on Chicago`s South Side, providing electricity to more than 600 homes and administrative buildings. Power purchase agreements, or PPAs, have not been common in Illinois in the past, largely because the state`s overall solar penetration has been so low. But that changed with the Future Energy Jobs Act of 2017, which offered strong solar incentives, and energy legislation could be passed this year that would expand those incentives. Even though the Energy Act makes solar energy more accessible, PPAs are still considered essential to making it affordable for more customers. ComEd`s October 2018 statement to a solar incentive regulatory process requested that customers be informed that PPA plants are not eligible for net metering under the Utilities Act. This article article first appeared on Energy News Network and is republished here under a Creative Commons. To determine whether a host site is a good candidate for a PPA, an economic analysis can be performed taking into account the historical supply data of the site, where the electrical connection of the system can be made and where possibly solar panels can be placed (roof, floor, etc.). The Illinois Trade Commission finally agreed that the “status quo” should be maintained, including the ability of AAE facilities to participate in net metering. ComEd had argued that net metering would be available to customers who rent solar panels – paying a fixed rate per month to the owner of the panels and collecting energy. However, this model carries a higher risk than PPAs and does not work for many clients for other reasons. The Commission has decided that leasing and PPAs are fundamentally similar and that both should be eligible for net metering.
Correction: The Clean Energy Development Group built a 750-kilowatt solar power plant at a school in Farmington, Illinois. In an earlier version of this story, the size of the project was poorly indicated. Grace Troccolo Rink is a clean energy consultant who has worked for local government agencies such as the Chicago Housing Authority and the Chicago Department of Aviation. She said she has worked with a Chicago district on a tender for more than 30 solar panels on public buildings and expects many companies to be interested. But after ComEd`s submission, the county received few proposals. To make this possible, there are several incentives to help organizations of all kinds – from hospitals and schools to sports complexes and financial institutions – get a better and faster return on investment when installing new solar panels: by providing funding of $180 million per year (up to $220 million per year), The goal is to encourage more Illinois companies to invest in renewable energy, including solar. By 2025, the Future Energy Jobs Act requires that 25% of the state`s energy sales be renewable. If your business is located in an area that offers REBs – such as Illinois – you can take advantage of this incentive. In some states, a certain percentage of renewable energy must come from solar energy (called “solar carve-out”). As a result, utilities must receive a number of solar renewable energy credits (SRECs).
One SREC corresponds to 1,000 kilowatt hours. Alternatively, agencies may decide to purchase the solar system directly. They would be responsible for the purchase, installation and maintenance of solar panels and the management of the energy they generate. This option can create challenges in the face of budget constraints. When capital is available for direct purchase and installation, this type of procurement has the potential to be a more streamlined process compared to a PPP. It is important to provide the necessary human and/or financial resources so that each solar system receives adequate maintenance and repairs when needed. The following table summarizes the pros and cons of acquiring a solar system through a PPA or direct purchase. Discounts on your local utility may or may not be available depending on the provider. In Illinois, Ameren and ComEd both offer discounts of up to $0.25 per watt for renewable solar.
These supply rebates can be combined with the federal solar tax credit. The state of Illinois` new policy, the Future Energy Jobs Act, calls for 2.3 GW of solar generation capacity by 2030, which will mean significant purchases in the utility sector. It also opens municipal or shared solar projects in the state and requires third-party land for project development. With PPAs, a private company owns the solar system and can use the federal investment tax credit to make significant savings. .