What are solar renewable energy credits (SRECs)?

In the state of Illinois, solar system owners can create SRECs from the energy produced by their solar panels and arrays. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). In other words, every time a MWh is produced by a solar array, another SREC comes into existence. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). SRECs are sold separately from the actual electricity they produce, which means owners can use the electricity from their solar array to directly lower their home or business’ electric bill and sell the SRECs that get created from that energy to the buyer.

SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources.

To learn more about the Illinois SREC program, visit the Illinois Shines program here: https://illinoisshines.com/