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Illinois is phasing out full retail net metering and transitioning to a new solar incentive structure called Smart Solar Billing on January 1, 2025. This change was set forth in 2021 through the Climate and Equitable Jobs Act (CEJA), so the solar industry, utilities and other stakeholders have had four years to prepare for this substantial change. While commercial customers in Illinois have been on the Smart Solar Billing plan since 2017, residential customers will now follow suit.
Some key elements of the new tariff:
- Smart Solar Billing uses “Dynamic Supply Pricing” to value energy exports based on time of use rather than one set rate of compensation
- Credits will now apply only to the supply portion of the electric bill instead of the entire bill, including delivery and taxes
- Customers under the new regime are also eligible for two new one-time upfront rebates:
- The Distributed Generation (DG) Rebate gives customers $300/kW of generating capacity to compensate for value added to the grid
- The Storage Rebate gives customers $300/kWh to help reduce the cost of energy storage
Transitioning from a traditional net metering system to Smart Solar Billing might seem like a daunting shift, but it opens up new opportunities for residential solar customers in Illinois. With Dynamic Supply Pricing, energy exports are valued based on the time of use, providing an incentive for residential solar customers to store energy and use it during peak demand hours. This not only benefits the customers but also helps the grid manage its load more efficiently.
The new credits system, which applies only to the supply portion of the electric bill, might result in a slight change in the way solar customers are compensated for their excess energy. However, the introduction of the DG Rebate and Storage Rebate aims to offset any potential losses. These one-time upfront rebates focus on compensating customers for the value they add to the grid by generating clean energy and incorporating energy storage systems. This helps reduce the overall cost of solar installations and energy storage solutions, making them more accessible to homeowners.
To maximize the benefits of Smart Solar Billing in Illinois, residential solar customers should consider the following tips:
- Analyze energy consumption patterns and adjust storage and usage accordingly. By using stored energy during peak demand hours, customers stand to gain more from Dynamic Supply Pricing.
- Consider investing in energy storage solutions. Energy storage systems can help residential customers optimize their energy usage, increase self-consumption, and take full advantage of the new rebate system.
- Keep an eye on market trends and technological advancements. The solar industry is continuously evolving, and staying informed about the latest developments can help homeowners make the most of their residential solar installations.
The shift to Smart Solar Billing might require some adjustments and planning, but it also fosters a more dynamic and efficient energy market in Illinois. By embracing the new system and making the most of the rebates and Dynamic Supply Pricing, residential solar customers can continue to save on their electricity bills and contribute to a cleaner, more sustainable energy future.