Changes to solar credits in 2025: what Illinois residents need to know

October 1, 2024
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As we approach 2025, significant changes are coming to how Illinois residents who invest in new solar systems will receive energy bill credits, specifically through net metering.

What is Net Metering?

Net metering is a state program that allows Illinois solar users to sell excess energy generated by their solar panels back to the utility company, receiving credits on their electric bills in return. It also offers a certain buy-back rate when solar users need to supplement their energy generated from solar with electricity from the utility company. 

Why is this important?

Solar panels naturally produce larger amounts of solar during the daytime, but this is typically when homeowner usage is lower while occupants are at work or school. However, energy usage is higher in the evenings with dinner, chores and family activities, while solar energy production is much lower. 

Net metering is a crucial incentive for solar owners in Illinois. It ensures that the utility only charges the solar customer for the net amount of electricity consumed.

Changes coming in 2025

Starting January 1, 2025, updates to state law will alter how net metering benefits are applied for new solar installations.

Note: Existing solar panel owners will continue to enjoy the pre-2025 net metering benefits for the lifetime of their systems.

Net Metering

Pre-2025
Utility credits applied to Supply, Delivery, and taxes/fees sections of electric bills, only charging the net amount of electricity consumed.

2025+
Utility credits will only apply to the Supply section of electric bills, increasing the cost of electricity delivered.


Distributed Generation (DG)

Pre-2025
Not previously offered

2025+
New solar customers will be eligible for a DF rebate starting at $300 per kW, contingent on using a smart inverter.

Outcome

Pre-2025
Offered no upfront DG rebate, but provides locked in net metering credits for the lifetime of the panels. 

2025+
Provides an upfront financial benefit but reduces the ongoing net metering credits over the lifetime of the panels.

Advice for prospective solar users

If you're considering solar power and want to maximize your benefits under the current net metering rules, it's crucial to act swiftly:

  • Installation Deadline: To qualify for the existing net metering benefits, your solar system must be approved for interconnection, installed, and operational by December 31, 2024.
  • Plan Ahead: Consult with solar providers and utilities promptly to understand the process and ensure your system meets the deadline requirements. Residents in the ComEd areas will likely not be able to lock in net metering this year, while JCE Co-Op members still have a window of time to get their project secured.

Take Action Now

Act now to secure full net metering benefits before 2025. Contact Arrow Solar today for expert guidance on installing solar panels and maximizing savings. Solar power continues to offer a viable and beneficial choice for Illinois consumers aiming to cut energy costs and reduce environmental impact.

 

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