A Renewable Energy Credit (“REC”) is a tradable, environmental asset that represents the clean attributes of solar electricity. (1 REC = 1,000 kWh) This opportunity is different than a net metering agreement with the utility where system owners are credited for excess generation. RECs are valued for the total energy production from an array and therefore represents the carbon or pollution avoided from the grid. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois.
The IPA requires that procurement bids meet a minimum of 1MW of installed capacity. These can be single projects or bundled together to meet that threshold. Small projects can work with 3rd party aggregators if they are not able to meet that guideline. ISEA recommends system owners work through their installer or contact the two preferred national companies listed below: Carbon Solutions Group or SRECTrade. The procurement functions similar to an auction and bids are reviewed based on system size and price. The IPA has a target that 50% of the RECs procured are from systems <25kW and will evaluate bids below a confidential benchmark.
UPDATE January 2021
*Note: Blocks 1-3 were completed under FEJA. Block 4 prices are not yet finalized and will be informed by the new long term plan that will be released this summer. Moving forward, blocks will step down on an annual basis.
ABP under FEJA:
After several years of effort from the renewable energy community, environmental advocates and economic/social justice organizations, the state has passed comprehensive legislation that will accelerate clean energy adoption in Illinois. The legislation will allow for the advancement of wind and solar through various procurement events and a Long Term Plan for DG solar procurement (systems <2,000kW) through 2030. The Long Term Plan includes provisions for community solar and brownfield development as well as an Adjustable Block Program (ABP) for REC procurement. Block 1 incentives for the ABP were released June 4th, 2018. See below for prices. Group A includes territories in Ameren, MidAmerican, Mt. Carmel, and Rural Co-Ops and Munis in MISO. Group B includes territories in ComEd and Rural Co-Ops and Munis in PJM. Visit the IPA website here for further details.
UPDATE December 2020
The funds for all blocks of the Adjustable Block Program have been depleted. ISEA is working getting a legislative fix passed. You can help by contacting your legislators and asking them to support the Path to 100! Find out more and send an email through our easy form at pathto100.net.
The IPA’s Revised Long-Term Plan, published by the IPA on April 20, 2020, contains several changes to Part I and Part II of the ABP project application. The Program Administrator has implemented these changes which are now live. The following are details regarding each change:
Part I Changes
Part II Changes
Changes that apply to both Part I and Part II
Should you have questions about any of these changes, please contact the Program Administrator at firstname.lastname@example.org.
Updates Included in these Prices
These prices are based upon the prices published in the REC Pricing Model Update released by the Agency on February 27, 2018, with the following adjustments:
Residential and Commercial Installers
Residential and Commercial System Owners
*Companies intend to be available for all procurement events. Be sure to check with your aggregator of choice to confirm their participation.