Financial incentives like the Adjustable Block Program (ABP), also known as Illinois Shines, work by providing payments to solar project owners in Illinois in exchange for the Solar Renewable Energy Credits (SRECs) their solar photovoltaic (PV) systems generate. Here is how the program functions in detail:
How the Adjustable Block Program Works for Solar Project Owners
- Program Administration: The program is administered by Energy Solutions on behalf of the Illinois Power Agency (IPA), which is an independent state agency responsible for implementing Illinois’ renewable energy goals.
- Purpose and Background: Established under the Future Energy Jobs Act (FEJA) of 2016 and expanded by the Climate and Equitable Jobs Act (CEJA) in 2021, the program aims to support solar development to help Illinois meet its renewable energy targets, including 100% renewable energy use by 2050. The program supports both on-site distributed generation and community solar projects.
- Incentive Structure: Solar owners enter into the program through an Approved Vendor (a vetted solar developer or contractor). The vendor submits an application for the solar PV system or community solar subscription. Once approved and the system starts operating, the vendor receives payments from utilities on behalf of the system owner.
- Payments via SRECs: The core financial incentive is payments in exchange for 15 years of Solar Renewable Energy Credits (SRECs) generated by the system. SRECs represent the environmental benefits of the solar electricity produced and can be sold to utilities to meet their renewable portfolio standards.
- Payment Variability: The payments vary depending on the size of the solar system and its location within Illinois. The vendor and system owner share these payments, which offset the costs of solar installation or community solar subscriptions.
- Consumer Protections and Prevailing Wage: The program includes consumer protection measures such as a Consumer Protection Handbook to safeguard participants from unfair practices. Additionally, projects under the program adhere to prevailing wage requirements, ensuring local labor wages for employees and contractors involved.
- Participation Options for Illinois Residents: Residents can participate by installing solar PV systems on their property or by subscribing to community solar projects within their utility service area. The Approved Vendor manages the application process and ongoing compliance with program requirements.
Summary Table
| Feature | Description |
|---|---|
| Program Name | Illinois Shines / Adjustable Block Program |
| Administered by | Energy Solutions on behalf of Illinois Power Agency |
| Duration of Payments | 15 years of payments for Solar Renewable Energy Credits (SRECs) |
| Payment Basis | Payments made to Approved Vendor for SRECs generated by the solar system |
| Payment Variation | Based on system size and location |
| Types of Projects Supported | On-site solar PV systems and community solar projects |
| Consumer Protections | Consumer Protection Handbook and approved vendor requirements |
| Labor Requirements | Prevailing wage requirements for labor involved |
| Participation Methods | Direct solar installation or community solar subscription |
This program effectively lowers upfront costs and improves solar project economics for Illinois residents and businesses by providing a long-term revenue stream through SREC payments. It also ensures consumer protection and equitable participation, particularly for low- and moderate-income communities and equity-eligible contractors.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-financial-incentives-like-the-adjustable-block-program-work-for-solar-project-owners-in-illinois/
