Want to learn more about The Adjustable Block Program but only finding dry articles full of jargon? Read the post below for an easy-to-read explanation of the Illinois Adjustable Block Program.
On June 1st, 2017 Illinois implemented the Future Energy Jobs Act. This law has the goal of ensuring Illinois produces 25% of its electricity via renewables by 2025. Of that 25%, a large portion is required to come from solar.
How does Illinois plan to encourage the generation of solar energy?
By offering monetary incentives to individuals, organizations, and businesses that go solar. To help reach the goal of the Future Energy Jobs Act, the Illinois Power Agency created the Adjustable Block Program. This program will allow those who live in Illinois to install solar more easily than ever.
Illinois residents that are accepted into the program and install solar will have the opportunity to exchange the Renewable Energy Credits their systems would generate for a payout. These payments would be in addition to any energy savings and the Federal investment tax credit.
Unlike the previous marketplace system, where solar array owners would sell Credits in a marketplace for various prices, payouts are in set amounts. The exact payment amount depends on the size of the solar array as well as the amount of solar installed throughout the state.
Lewis Butler, Simpleray Sales Manager and resident ABP expert, explains:
“This new program gives people with solar a predictable outline guaranteeing how much they will make off the energy credits they are sending to the utility companies.”
The Block System
The Adjustable Block Program takes its name from the block system that the payments will be based on. There are several blocks, each one represents the amount of solar energy that has been installed in Illinois.
The less solar that has been installed, the more you’ll get when you exchange your Renewable Energy Credits for a payout. The state will start off in the first, highest paying Block. As more people go solar and the total kWs installed increases, the state will move to the next Block, which will pay out less.
Below is a sample table of the blocks and their payment amounts. Please remember that these numbers are not yet finalized.