Going solar isn’t just about clean energy—it’s about smart energy. When you install solar panels, you’re not only reducing your electricity bill, but you’re also earning valuable Solar Renewable Energy Certificates (SRECs). These credits are your reward for helping the planet, and they can translate into real money in your pocket. Here’s how they work and how you can make the most of them.
Think of an SREC as a bonus check for going solar. For every 1,000 kilowatt-hours (kWh) your system produces, you earn one SREC. These credits can be sold to utility companies that need to meet state-mandated renewable energy goals. By selling your SRECs, you’re turning sunlight into savings and helping drive the clean energy movement.
Many states have Renewable Portfolio Standards (RPS), which require utility companies to source a portion of their electricity from renewable energy. Utilities can either build large solar farms or buy SRECs from homeowners and businesses that generate solar power. That’s where you come in—your system’s production contributes to the state’s renewable energy target, and you get paid for it.
In Illinois, the RPS mandates that 40% of electricity comes from renewable sources by 2030.
Through programs like Illinois Shines, solar adopters can sell their SRECs at competitive rates, making solar even more financially attractive.
SREC values vary based on market conditions, state policies, and supply and demand. In Illinois, SREC payouts depend on system size:
💡 Staying informed about market conditions is key rates can shift based on state demand and regulatory changes.
SREC values in Illinois are set annually by the Illinois Power Agency (IPA) and vary by system category, utility territory, and program year. Prices can change as new REC price schedules are released each program year and as block capacity is filled.
The number of SRECs your system generates depends on factors like system size, efficiency, and sunlight exposure.
Yes. To earn SRECs through Illinois Shines, your system must be included in a project application submitted by an Approved Vendor or Designee.
Only registered systems participating in the program are eligible for REC incentives, this step is essential.
There is no specific minimum for participating in Illinois Shines, but SREC payments and program categories vary by system size and type (e.g., distributed generation vs community solar). Available block capacity and pricing tiers depend on system size.
Approved Vendors are entities approved by the Program Administrator (as an agent of the Illinois Power Agency), to submit project applications to the Illinois Shines Program and act as a counterparty to the Illinois Shines contracts with utilities. Designees are third parties (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers; they include installers, marketing firms, lead generators, and sales organizations. Approved Vendors often work with Designees to manage various portions of solar system development.
📌 Prices fluctuate, so it’s smart to check work with a solar expert to time your sales for the best return. Check out our SREC consulting servicesfor support.
In Illinois, SREC applications are verified by the IL Shines Program, Illinois Commerce Commission, and the Illinois Power Agency. Once SREC applications are verified, the assigned Approved Vendor tracks and uploads production to the generation tracking portal, and acts as the liaison for the system owner for the duration of the SREC term.
SREC incentives through Illinois Shines are supported by long-term program commitments and annual funding allocations, and SREC payments are generally honored per the terms of your contract with an Approved Vendor for the specified contract period (commonly 15 years). Once SREC applications are approved by IL Shines and the Illinois Commerce Commission, SREC incentive payments are contractually guaranteed by the program for the expected system production. The SREC incentive payments for residential installations are dispersed within the first 18 months of the 15-year production term, and commercial installations are dispersed quarterly for the first 7 years of the 15-year production agreement.
Under Illinois Shines, SREC incentives are tied to a 15-year contract period for most residential systems; RECs beyond that period are not issued under the program. Program rules and REC issuance periods are defined in the Illinois Shines Guidebook and annual program documents.
Yes. Homeowners can choose not to enroll in Illinois Shines or may retain the renewable attributes of their system, but then they forgo the financial incentive offered by the program. Most homeowners participate through Approved Vendors to capture this value.
Yes. Net metering credits your electric bill for excess electricity your solar system exports to the grid, whereas SRECs represent the renewable environmental value of solar energy produced. They are separate benefits. Net metering affects your utility bill, while REC incentives are financial credits under Illinois Shines.
If your solar project remains enrolled in Illinois Shines, the SREC contract stays with the specific solar system and its contract holder (your buyer if you transfer ownership). Approved Vendors provide guidance on transfer and documentation requirements if the property with the solar system is sold.
If host system location is sold, seller must notify ilumen, LLC, and the new owner is required to agree to the SREC contract transfer and fulfillment. The 5% collateral held by the utility will transfer to the new owner. Upon any real estate transactions, ilumen, LLC will invoice the primary system owner $750 for administrative hours assisting with consulting and paperwork.
Yes, SRECs are genearlly considered taxable income by the IRS. The money earned from selling SRECs must be reported on your tax return, and you may owe federal and state taxes on the income. Consult a tax professional for details on how SRECs impact your specific tax situation.
✅ Earn money from your solar energy: SRECs provide additional income, reducing your payback period.
✅ SREC values vary by state: Illinois offers structured payments, while other states have fluctuating markets.
✅ Selling your SRECs An Approved Vendor registered with the Illinois Shines Program will be able to handle the application process on your behalf.
✅ Contribute to a cleaner future: By selling SRECs, you help utilities meet renewable energy goals and drive sustainable progress.
Thinking about solar? Whether you’re considering installation or already producing clean energy, understanding SRECs can maximize your returns. Want to see how much you could earn? Let’s talk.
