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Renewable Energy Incentives

Find our more about solar panels and other renewable energy options.

Here is a guide to available Federal and State incentives and tax credits and rebates. This information is from DSIRE (Database of State Incentives for Renewable Energy). Check their web site for the most updated information. www.dsireusa.org

Illinois Incentives

RECAP

The Illinois Solar Energy Association offers the Renewable Energy Credit Aggregation Program (RECAP) to Illinois solar photovoltaic (PV) system owners, providing them with an opportunity to receive payment for their solar renewable energy credits (SRECs*). The program was created in 2008 to provide an additional revenue stream for small PV system owners and to support Illinois solar development.

Founding Source	Illinois Solar Energy Association
Eligible Projects	Photovoltaic
Incentive Amount	$ 0.135/kWh
Maximum Incentive	A maximum of 170 MWh will be accepted
Terms	Eligible System Size = 10 kW
Beginning Date	01/01/10
Expiration Date	First come, first served
Website	www.illinoissolar.org/RECAP
Link to DSIRE page	www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL36F&re=1&ee=0

SPECIAL ASSESSMENT FOR SOLAR ENERGY SYSTEMS

Illinois offers a special assessment of solar energy systems for property-tax purposes. For property owners who register with a chief county assessment officer, solar energy equipment is valued at no more than a conventional energy system. Eligible equipment includes both active and passive solar-energy systems. The exemption is not valid for equipment that is equally usable in a conventional energy system or for components that serve non-solar energy generating (e.g., structural, aesthetic, insulating, etc.) purposes.

Those who wish to have their solar energy property valued in this fashion must file the State of Illinois PTAX-330 property tax form with their local county assessor's office. Forms are available online and through each Illinois county assessor's office.

Founding Source	State of Illinois
Eligible Projects	Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics
Forms available	http://www.co.stephenson.il.us/assessor/forms/PTAX_330.pdf
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL01F&re=1&ee=0

DCEO BIOGAS AND BIOMAS ENERGY GRANT PROGRAM

Projects designed to use biogas or biomass as a source of fuel to produce electricity with combined heat and power (CHP) through gasification, co-firing or anaerobic digestion technologies are being targeted. All projects must be located in Illinois within the service areas of utilities that contribute to the RERTF.

Founding Source	Renewable Energy Resources Trust Fund
Eligible Projects	Landfill Gas, Biomass, CHP/Cogeneration, Biogas (methane produced by livestock manure and waste, municipal waste water sludge, segregated organic wastes), Anaerobic Digestion, Other Distributed Generation Technologies
Incentive Amount	50% cost-share for energy feasibility studies or for the installation of equipment for these purposes.
Maximum Incentive	The maximum grants available for feasibility studies, biogas projects, and biomass projects are $2,500, $225,000, and $500,000, respectively.
Terms	Projects must be part of a CHP system and requires a state licensed installer with appropriate insurance coverage
Website	http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/Energy/Clean+Energy/02-BiogasBioMass.htm
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL26F&re=1&ee=0

DCEO SOLAR AND WIND ENERGY REBATES

As of October 2010, the budget for FY2011 is not yet set. Please check the program website for updates. The information provided below is a summary of the program for FY2010 and is likely to change.

Founding Source	Illinois Renewable Energy Resources Trust Fund
Eligible Projects	Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Solar Pool Heating
Incentive Amount	30% of total project cost
Maximum Incentive	$50,000
Terms	PV systems: rated design capacity of at least 1 kW; Solar-thermal systems: designed to produce at least 50,000 Btus per day or contain at least 60 sq. ft. of collectors; Wind: name-plate capacity 1-100 kW
Website	http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/Energy/Clean+Energy/01-RERP.htm
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL05F&re=1&ee=0

Federal Incentives

ENERGY EFFICIENT MORTGAGES

Homeowners can take advantage of energy efficient mortgages (EEM) to either finance renewable energy technology projects. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.

Founding Source	US Federal Government
Eligible Projects	Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Daylighting
Website	http://www.resnet.us/ratings/mortgages
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US36F&re=1&ee=0

RESIDENTIAL ENERGY CONSERVATION SUBSIDY EXCLUSION

According to Section 136 of the U.S. Code, energy conservation subsidies provided to customers by public utilities,* either directly or indirectly, are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978. If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay).

Founding Source	US Federal Government
Eligible Projects	Solar Water Heat, Solar Space Heat, Photovoltaics
Incentive Amount	100% of subsidy
Maximum Incentive	$50,000
Terms	Personal Exemption
Website	http://www.irs.gov/publications/p525/index.html
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US03F&re=1&ee=0

RESIDENTIAL ENERGY EFFICIENCY AND RENEWABLE ENERGY TAX CREDIT

Founding Source	US Federal Government
Eligible Projects	Biomass, Stoves that use qualified biomass fuel; Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies
Incentive Amount	30% of total project cost
Maximum Incentive	Solar-electric systems placed in service before 1/1/2009: $2,000 Solar-electric systems placed in service after 12/31/2008: no maximum Solar water heaters placed in service before 1/1/2009: $2,000 Solar water heaters placed in service after 12/31/2008: no maximum Wind turbines placed in service in 2008: $4,000 Wind turbines placed in service after 12/31/2008: no maximum Geothermal heat pumps placed in service in 2008: $2,000 Geothermal heat pumps placed in service after 12/31/2008: no maximum Fuel cells: $500 per 0.5 kW
Terms	Fuel cells eligible size: 0.5 kW minimum; Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling's water must be from solar. Geothermal heat pumps must meet federal Energy Star requirements. Fuel cells must have electricity-only generation efficiency greater than 30%
Beginning Date	1/1/2006
Expiration Date	12/31/2016
Website	http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Link to DSIRE page	http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=0