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.
Updated May 2022
On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop.
As outlined in CEJA, ABP applications up to and including 25 kW are now considered to be in the Small DG category. As a result, waitlisted applications larger than 10 kW and less than or equal to 25kW on the Large DG waitlist (approximately 11 MW in aggregate) have been reclassified as Small DG prior to the 12/14/21 portal reopening.
The IPA website is regularly updated with new information about the ABP. We encourage you to click here for the latest news.
After the passage of CEJA, the IPA has released a new guidebook for the Adjustable Block Program. The full guidebook can be accessed here. For current REC prices, see page 14 copied below.
*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 in the summer of 2022. Moving forward, blocks will step down on an annual basis.
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.