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Powering Your Home With The Sun

Introduction to Residential and Community Solar

Name

ISEA position

www.illinoissolar.org

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  • Established in 1975
  • 501(c)3 charitable organization
  • 250+ individual members
  • Provides public education, such as the Solar Tour, webinars, and newsletters

ISEA’s mission is to educate and advocate for the widespread application of solar and other forms of renewable energy to the people of Illinois

  • Established in 2020
  • 501(c)6 trade association
  • ~150 business members
  • Conducts policy work, job fairs, and networking events

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Illinois Electricity Generation

  • As of Q3 2025, there is 6,557 MW of solar installed in Illinois - 3.67% of the energy mix
  • State law requires 40% of electricity used in the state to come from renewables by 2030

Source Data: U.S. Energy Information Administration; Solar Energy Industries Association

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But solar capacity is growing, and will continue to grow!

Illinois Electricity Generation

Source Data: U.S. Energy Information Administration; Solar Energy Industries Association

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There is solar installed all over Illinois!

Source: illinoisshines.com/project-map on 12/18/25

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Why Go Solar?

Reduces carbon emissions and environmental concerns 

Improves public health

Creates jobs

Saves money on electric bill

Increases home value

Inexhaustible energy supply

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Installing solar will increase my property taxes!

Common Myths

You have to have a South exposure on you roof.

It will be harder to sell my house.

It’s too expensive!

Solar panels will cause my roof to leak, deteriorate or collapse.

The utility will pay you for the extra power you produce

We don’t get enough sun.

It’s too cold here; solar panels can’t withstand snow, hail, winds, & sleet.

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Too Far North?

Not Enough Sun?

Photovoltaic Solar Resource: United States & Germany

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The Electric Grid is Changing

Large power plants;

under centralized control

Distributed generation grid;

a “smart” connected network

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Residential Solar System

Primary Components

1 PV Collectors

2 Inverter/Micro-Inverter

3 Service Panel

4 Household Load

5 Electric Meter

6 Grid & Net Metering

Optional Component:

Energy storage system

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Process to Go Solar

  • Schedule a Site Evaluation
  • Choose a Contractor
  • Sign Interconnection Agreement
  • Permit Completed by Installer (typ. 30-60 Days)
  • Material Delivery (typ. 2 Weeks)
  • Installation (typ. < 1 Week)

TOTAL DURATION: �Approx. 3-4 months to go solar!

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Process to Go Solar

ISEA Resources

ISEA Solar Calculator www.illinoissolar.org/solar-calculator

Find a Professional Tool www.illinoissolar.org/FindAProfessional

FAQs for Homeowners www.illinoissolar.org/Homeowner-Resources

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Financing Options

ISEA Members are eligible for the Clean Energy Credit Union, which focuses exclusively on providing loans for clean energy and energy saving projects

Options where you own the solar array:

  • Ranges from $0 to large upfront cost
  • Overall better financial return vs 3rd Party

Pay Cash

Traditional Loan

        • Bank Loan
        • Home Equity Loan

Solar Electric System Loan

  • Customized for a solar array
  • Secured by the equipment (not your home)
  • Can get the loan in 2 parts

– 12 to 18-month loan to cover solar tax credit

– 12 to 20-year loan for up to 74% of eligible project cost

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Financing Options

Options where you do not own the solar array �(it’s owned by a 3rd party):

  • Little to no upfront cost
  • Understanding the contract is key
  • Lower financial return compared with ownership

PPA – Power Purchase Agreement

Homeowner pays an agreed-upon price for electricity that is lower than the typical price from your electric company

Solar Lease

Homeowner pays a leasing fee that is lower than your typical electric bill

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Net Metering

How does net metering work?

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Production & Usage

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Production & Usage

GOAL: �Have surplus match deficit

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Net Metering Compensation as of Jan 1, 2025

  • New solar customers will receive net metering for their supply charges, but NOT for their delivery charges or taxes/fees as they have in the past
  • Customers will be able to choose between a 1:1 kWh or monetary credit for excess electricity exported to the grid, applied to their next bill if exports exceed consumption. These credits will not expire.

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Net Metering Compensation as of Jan 1, 2025

  • To offset the initial cost to install solar and/or storage, customers can apply for a one-time “Distributed Generation (DG) Rebate” (also called the “Smart Inverter Rebate”) and/or the “Storage Rebate.” The DG Rebate offers an incentive of $300 per kilowatt of generating capacity and the Storage Rebate offers an incentive of $300 per kilowatt hour of storage. A customer must participate in a peak time rebate program, hourly pricing program or time of use rate program offered by their utility to qualify for the Storage Rebate.

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Net Metering Compensation as of Jan 1, 2025

In sum, new customers will receive

Supply credits

Rebates

State

incentives*

*These incentives will be covered later in the presentation

+

+

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Legacy Net Metering Customers

  • Solar customers who installed their system BEFORE January 1, 2025 will receive full retail net metering, which includes for supply charges, delivery charges, and taxes/fees. This is legacy net metering
  • To qualify, the installation, testing, and final inspections of a customer's system must be completed, and all required paperwork submitted to the utility by 5:00 PM CT on December 31, 2024. This process is typically handled by the installer on behalf of the customer.
  • Legacy customers will receive legacy net metering for the whole lifetime of the system, but the credits will zero out once a year, in either April or October
  • Legacy customers in ComEd territory may expand their systems with no cap and still retain legacy net metering
  • Legacy customers in Ameren territory may expand their systems with a cap at 100% and still retain legacy net metering

In sum, legacy customers will receive

Supply credits

Delivery credits

State & Federal

incentives*

+

+

*These incentives will be covered later in the presentation

+

Adjustment on

taxes & fees

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Earning Credit on Your Bill

PRE 2025

ComEd Bill – April 2024

Your bill will change, showing: �In Flow �(from grid)

and Out Flow �(to grid) readings

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Production and Usage

PRE 2025

ComEd Bill –April 2024

If more In �than Out, you pay the difference.

If more Out than In, you rollover the excess to the next month.

Typically rollovers can go month to month but not year to year.

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Earning Credits on the Grid –

Hourly Pricing

PRE 2025

Your bill will change, showing: �In Flow �(from grid)

and Out Flow �(to grid) readings

The price per kWh of energy changes each hour based on the market price for that hour.

ComEd Bill – June 2020

For details on hourly pricing policies:

ComEd: https://.comed.comhourlypricing

Ameren: https://www.powersmartpricing.org

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Earning Credits on the Grid –

Hourly Pricing

PRE 2025

ComEd Bill – June 2020

Capacity Charge – was $11.36 Yr 1; change to $.29 => $132.84 annual savings

It’s based on actual peak after Yr 1

Inflow (kWh) x Ave Hourly Price

Capacity Charge – updated each June; represents reserve for your peak demand

Outflow (kWh) x Ave Hourly Price

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Earning Credits on the Grid –

Hourly Pricing

PRE 2025

ComEd Bill – June 2020

Credit this month

Rollover Credit from last month

Amount Due this month

Generation Credit – sum of all net metering credits + tax

Remaining Credit: Rollovers can go month to month but not year to year. You can choose either April or October for your year-end. At that time your credit goes to $0.00.

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Solar Incentives

State Incentives

  • ~20-30% based on SREC $ amount
  • 1 SREC = 1 MWh solar energy
  • RECs monetize environmental benefits of solar generation
  • Must secure a contract to sell SRECs to Illinois Power Agency through Approved Vendor

Federal Incentives

  • Investment Tax Credit (ITC)
  • Renewed by the Inflation Reduction Act in 2022Through 2032: 30%� – 2033: 26%

– 2034: 22%

  • Starting 2035: � – 0% (residential systems)� – 10% (commercial/� utility-scale)

Now Ends December 31, 2025!

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Renewable Energy Credits (RECs)

RECs quantify and monetize the environmental benefit of adding solar to the grid

Systems <25kW AC receive 15-year incentive upfront!

This is in addition to the saving on their bill (net metering) and the rebate(s)

Homeowner installs a solar system

Solar system produces a number of MWh per year �(1 MWh = 1 REC)

IPA purchases RECs for ComEd and Ameren

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ABP – Residential Blocks

Group A

(Ameren, MidAmerican, Mt. Carmel, and Rural Co-Ops and Munis in MISO)

Group B

(ComEd, and Rural Co-Ops and Munis in PJM)

Size Sub-Category (kW AC)

REC Price ($/REC)

Size Sub-Category (kW AC)

REC Price

<= 10 kW

$66.34

<= 10 kW

$75.48

> 10-25 kW

$57.18

> 10-25 kW

$69.78

*Note: Current block prices released April 18, 2025. Block prices change with each new program year.

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Clean and Equitable Jobs Act (CEJA)

  • Passed September 2021
  • Builds on previous legislation (FEJA)
  • Creates path to 100% clean energy by 2050
  • Sets goal of 100% carbon-free power by 2045 through the closing of coal and fossil gas plants
  • Provides funding to increase renewable energy from 9% to 40% by 2030 and 50% by 2040
  • Increases funding for Illinois Solar for All and new inclusive financing mechanisms

Year

Cumulative New Solar

2020

1,350 MW

2025

2,000 MW

2030

2,700 MW*

3.5x more renewable energy

will be built each year!

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Clean and Reliable Grid Affordability Act (CRGA)

  • Passed October 2025
  • Builds 3 GW of clean energy storage
  • Establishes a Virtual Power Plant program, which pools energy from already built energy sources like household solar panels paired with battery storage, to deliver rapid savings
  • Strengthens energy efficiency programs
  • Empowers state agencies to better plan for future energy demand spikes

Will save Illinois families and businesses more than $13 billion on electricity bills over the next 20 years!

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IPA Plans for REC Distribution

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My Solar Story

  • Tell us your solar story here! Include a photo of your solar if you can

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What is �Community Solar?

Community solar refers to larger-scale solar facilities to which individual community members can subscribe.

illinoisshines.com/find-a-community-solar-project

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Systems do not have to be located near the entities they service, but they do need to be in the same utility territory

  • Great for renters, homes with too much shade, etc.

What is Community Solar?

Participating subscribers receive an energy credit from the utility (not the actual electrons)

  • Most subscriptions promise 10-20% off your regular electric bill

In Illinois, no single entity may off-take more than 40% of a community solar project

Know your electricity usage before subscribing

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Community Group Purchasing, sometimes called “Solarize” programs, utilize group purchasing power to provide rooftop solar solutions at lower costs.

What Community Solar is NOT

Utility-Scale Projects, typically 50+ MW connected to transmission system, help utilities diversify their energy portfolio but do not provide individuals and business direct access to the solar facility

Municipal Aggregation or Green Power Purchasing programs. These arrangements only provide subscribers the environmental attributes from solar facilities at a premium cost - they do not share the energy output from the solar facility and do not save subscribers money.

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The owner of the community solar project pays the upfront costs to build, maintain and connect the project to the utility’s power grid.

Community Solar Billing

Subscribers pay the owner for their portion of the electricity produced.

The owner then reports the output of each solar subscription to the utility.

The utility company adds credits to the subscriber’s electric bill equal to that output.

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Community Solar Billing

Example Situation

  • Let’s say your home uses 1,000 (kWh) of electricity in a month, and the portion of community solar you subscribe to produces 950 kWh in that same month.
  • You would receive a credit on your bill amounting to your supply rate multiplied by 950 kWh, meaning that month you would only need to pay for the remaining 50 kWh.
  • Then, you receive a separate bill from your community solar provider for that 950 kWh generated by your subscription.

Currently, all community solar companies in Illinois offer savings by charging you lower than what you would have paid ComEd or Ameren.

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How Does Community Solar Save You $$?

Without �Community Solar

Electric Bill

Supply $56

800 kWh x 0.07 $56

Delivery $45

Taxes and Fees $8

Total $109

TOTAL OWED: $109

With Community Solar

Electric Bill

Supply $6

800 kWh x 0.07 $56

Solar Credits

714 kWz x 0.07 – $50

Delivery $45

Taxes and Fees $8

Total $59

Solar Provider Bill

Solar Credits $50

20% Discount – $10

Total Due $40

TOTAL OWED: $99 | TOTAL SAVINGS $10

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Real Community Solar Bill

ComEd; this person also has their own residential solar system

ComEd Bill – August 2021

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Sample Community Solar Provider Bill

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Real Community Solar Bill

Ameren; this person also has their own residential solar system

Ameren Bill – December 2021

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Solar for All: Low Income Program

Solar must produce energy and economic benefits that flow directly to participating low-income households

Priority given to projects that show meaningful involvement of community members in designing proposals

Projects must include job training opportunities if available, and shall endeavor to coordinate with the job training programs

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Next Steps

Find a Professional

Use ISEA’s Find a Professional Tool on the ISEA website to find and contact residential installers in your area!

ISEA recommends that you contact at least 3 different installers to get quotes for your solar system

www.illinoissolar.org/�FindAProfessional

Become a Member

ISEA Membership provides you with numerous benefits. Apart from supporting the future of solar energy through your donation you will receive:

  • Discounts to ISEA events and classes
  • Timely updates concerning policy, events, and announcements
  • ISEA voting rights
  • Access to credit union

Public Education

Use ISEA’s Educational webpages to learn more about the entire solar process.

From tax credits to policies to the technical elements of solar, the ISEA education page is a great tool to learn more!

www.illinoissolar.org/Homeowner-Resources

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For more information visit www.illinoissolar.org �or email contactisea@illinoissolar.org

To find an installer near you, visit www.illinoissolar.org/FindAProfessional