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.
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.
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.