Illinois

• Long-Term Renewable Resources Procurement Plan
  • Adjustable Block Program
    1. How the Block Structure Works
    2. Transition between Blocks
    3. REC Pricing Model
    4. Size Category Adjustments to REC price
    5. Community Solar REC price Adjustments
    6. Payment Terms
    7. Technical System Requirements
    8. Metering Requirements
    9. Customer Information Requirements/Consumer Protections
  • Illinois Solar for All Program
    1. REC prices for the Solar for All Program

Illinois

Long-Term Renewable Resources Procurement Plan

Adjustable Block Program

How the Block Structure Works

• The Adjustable Block Program offers a set of prices for Renewable Energy Certificates (RECs) from qualifying projects, and the price will be adjusted in volumetric blocks

• Progression from one block to the next is triggered by a certain volume of deployment, not by a time-based deadline. 

• The block structure is expected to allocate 3 blocks per category to meet the expected demand for this program (roughly 1 block per category per year through 2020).

• If demand in any given category is stronger than anticipated (and funding available), additional blocks after Block 3 will open to accommodate that demand

• If demand is lower in a category, a block may remain open for longer.

• The Adjustable Block Program can be split into two groups by service/territory/geographic category:

  1. Group A: for projects located in the service territories of:

     1. Ameren Illinois,

     2. MidAmercian,

     3. Mt. Carmel Public Utility,

     4. Rural electric cooperatives and municipal utilities located in MISO

  2. Group B: for projects located in the service territories of:

     1. ComEd,

     2. Rural electric cooperatives and municipal utilities located in PJM 

• Within each group, the blocks are divided by the following allocations:

  • 25% for systems up to  <= 10kW (small systems),

  • 25% for systems >10kW and <=2000kW (large systems),

  • 25% for photovoltaic community renewable generation (community solar),

  • 25% to be allocated by the Agency.

Transition between Blocks

• When a block’s capacity is filled, the next block for that category (with a different price) will open at a price expected to be 4% lower than the previous block.
• Closing of each block will be a soft closing:

  • For each Block 1, project submitted within 14 days of the program opening will be considered for that block. However:

    • If total quantity of reviewed and approved projects submitted during the 14 day period exceeds 200% of the Block 1 volume, then the Agency would use a lottery process to select projects.

    • For community solar projects: priority given to projects that propose to include at least 50% small subscribers (50% of the available funding would be reserved for these projects). If number of proposed projects with small subscribers exceeds that funding, then there would be a first lottery for just that pool of projects. Small subscriber projects that are not selected in the lottery are placed in the lottery along with the remaining 50% of funding.  

• If after 14 days applications do not exceed 200% of Block 1 volume, then the Block would remain open until filled.

• Projects not selected in initial lotteries would included in the next block at the applicable price.

REC Pricing Model

 Converting System Size into REC Quantities:

• For each system that is approved, a 15-year REC payment amount and obligation level will be calculated for the system and that payment amount will be included in that contract.

• Approved Vendors have the option of using a standard capacity factor, or proposing an alternative capacity factor based upon an analysis conducted using PVWatts or an equivalent tool. (Alternative capacity factors will be subjected to review and approval by the Program Administrator).

• The standard capacity factor can be used:

• Fixed-mount system: 16.42% (expected: 21 RECs over 15 years for every 1 kW capacity)
• Tracking system: 19.32% (expected: 25 RECS over 15 years for every 1 kW)

Size Category Adjustments to REC price

• The Agency proposes a set of adjustments based on project size for projects > 10 kW and <= 2000 kW.

• Adjustments only available for systems over 10 kW in size in both Large and Community Solar categories.

Community Solar REC price Adjustments

• Offer additional incentives for community solar projects with a higher level of small subscribers (residential and small commercial customers with subscriptions below 25 kW).

Payment Terms

• For systems up to 10 kW: the REC purchase price shall be paid in full by the contracting utilities at the time that the facility producing the REC is interconnected at the distribution system level of the utility and energized. 
• For systems > 10kW and <= 2000KW + Community Solar Projects: 20% of the REC price shall be paid by the contracting utilities at the time that the facility producing the RECs is interconnected at the distribution system level of the utility and energized. The remaining portion shall be paid ratably over the subsequent 4-year period (payments made quarterly over the next 16 quarters after the first 20% payment).

Technical System Requirements

• The following information must be submitted for each project:

  • Model, manufacturer of components

  • Number of panels, inverters and meters used

  • Array location (roof or ground mount)

  • Array orientation (tilt, azimuth)

  • Shading percentage (including shading study)

  • Site map or other project details

• Description of technical specifications of the main system components including:

• Estimated REC production during the first 15-years delivery term using PVWatts or a similar tool
• For systems over 25kW: signed Interconnection Agreement

Metering Requirements

• Systems registered in M-RETS must utilise an ANSI C.12 certified revenue quality meter

• Systems over 10kW registered in GATS must utilise a new meter that meets ANSI C.12 standards.

• Systems of 10KW in size and below registered with GATS must utilise either a meter that is accurate to +/- 5% (or an inverter that is specified by the manufacturer to be accurate to +/- 5% and must be UL-certified and include either a digital or web-based output display).

Customer Information Requirements/Consumer Protections

• The following information must be provided to all customers:

  • A copy of the contract for the lease, sale, or financing arrangement. A disclosure form which includes standard information on the system equipment and components, warranty, installer, and lease or financing structure. The form will also include a standardized estimate of:

    1. The price and performance of the system as installed, 

    2. anticipated first year production

    3. Expected annual system production decreases

    4. Expected overall percentage degradation over the life of the system

    5. Standard forecast for retail electricity prices

    6. Net cash flow analysis

    7. Target rate of return of each project.

    8. Also should include disclosure that cash flow may change if the utility’s net metering tariffs or distributed generation rebates change prior to the completion of the system.

  • A brochure to inform consumers of their rights, procedures for filing complaints, and point to more information on the program website.

• To ensure the above information is provided to customers, installers are required to provide:

  1. A signed contract amendment

  2. The disclosure form signed by the customer post-contract execution

  3. Proof that the brochure was provided to the customer.

Illinois Solar for All Program

• Incentive targeted at low-income communities and families.

• Includes 4 sub-programs within Illinois Solar for All, with incentives for each type of development:

  1. Low income distributed generation for on-site solar projects 
     (Budget allocation: 22.5%).

  2. Low income community solar, for off-site solar projects 
     (Budget allocation: 37.5%).

  3. Incentives for non-projects and public facilities to do on-site projects 
     (Budget allocation: 15%).

  4. Low income community solar pilot projects, with distinct rules and incentives
     (Budget allocation: 25%). 

• No upfront costs to participants and any ongoing costs or fees will not exceed 50% of the value of the energy produced.

• All Solar for All projects receive up-front payment for 15-year REC contract

• Projects will be required to participate in the utility’s or ARES’s net metering program (hence may prevent projects in service territory of a municipal utility that does not offer net metering from participating)

• REC prices for the Solar for All Program can be found here: https://www.illinoissfa.com/renewable-energy-credit-prices/

REC prices for the Solar for All Program