Net Metering has been the cornerstone of increased solar adoption in Illinois. Through net metering, customers receive retail rate credits ($) for the electricity they export back to the grid. The retail rate is the rate at which customers buy electricity from utilities and includes components such as supply, transmission, distribution, and taxes.
In addition to net metering, homeowners in Illinois can take advantage of various incentives to lower the monetary cost of solar purchase. However, starting 2025, there will be major changes in the way IL utilities will evaluate the exported energy. Below, we summarized all the important information regarding the ‘Smart solar billing’ policy changes and how Solargraf can help.
Key changes in IL net metering (‘Smart solar billing’)
- Smart solar billing implementation: Smart solar billing begins on January 1, 2025. Customers can retain current net metering benefits (grandfathered status) if their interconnection application is completed before December 31, 2024.
- Revised export credit structure: Customers will receive export credits corresponding only to the supply rate of the bills. No export credits will be provided for distribution, transmission, and taxes.
- Utility export credit comparison:
| Utility |
Current NEM (energy supply + Delivery) |
New NEM (energy supply only) |
|---|---|---|
| COMED | ~$0.12/kWh | ~$0.06/kWh |
| Ameren | ~$0.10/kWh | ~$0.05/kWh |
- PV rebates: Customers can benefit from PV rebate (Distribution Generation rebate of $300/kW) while remaining on fixed tariffs.
- Energy storage system (ESS) rebates: Storage customers must transition to an hourly dynamic tariff to qualify for the ESS rebate (Distribution Generation rebate of $300/kWh)
- Illinois shines SREC rebates: Customers can leverage IL Shines SREC rebate to further reduce the project costs. The value of the IL SRECs (Solar Renewable Energy Certificates) for a residential system is calculated by multiplying the number of SRECs the system is expected to produce over 15 years by the applicable price per SREC. (# of SRECs * price per SREC)
How the changes impact solar professionals
These shifts will affect how solar professionals design, sell, and finance solar projects in Illinois. Here’s what to expect:
- Increased importance of accurate ROI calculations: With value-based credits, it’s essential to clearly communicate financial benefits to customers.
- Embrace energy storage: Batteries can help homeowners optimize behaviour using smart discharging and charging based on hourly varying prices
- Complex system designs: TOU rates and the growing demand for storage solutions will require more customized system designs.
- Educating customers: Solar professionals must be prepared to explain these changes and their implications to potential buyers.
- Stay informed: Keep up with Illinois’ regulatory updates and utility announcements to avoid surprises.
- Leverage technology: Use tools like Solargraf to stay competitive and provide customers with tailored solutions.
How Solargraf can help you
Step 1: Select ‘Smart Solar Billing’ as grid connection type
Step 2: Select appropriate post solar tariff (fixed tariff and dynamic tariff available)
Note: hourly tariffs (right image below) will have ‘BESH’ or ‘Real time pricing’ prefixes
Step 3: Add applicable solar and battery incentives
The future of solar in Illinois
While the changes to net metering may initially seem challenging, they also present opportunities for innovation and growth in the solar industry. By understanding the new policies and leveraging advanced tools like Solargraf, contractors can continue to thrive and help Illinois transition to a greener future.
Are you ready to adapt to the 2025 net metering changes in Illinois? Sign up for Solargraf today and stay ahead of the curve!
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