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.
How Do You Get Paid?
Now the fun part. If you choose to go solar and are accepted into the Program, when will you get paid?
Once your application has been submitted and approved and your array has been installed, you’ll receive your ABP Payment. If your array is smaller than 10 kW, then you’ll receive the money in a single payment. This is a common size for residential arrays. However, if you have bigger energy needs (as many businesses do), you will receive 20% of the total payment each year over four years.
How Do You Get Started?
The first step is to connect with a solar company like Simpleray and speaking with a Renewable Energy Consultant. They’ll take a look at your property and utility bills to see if solar power is the right choice for you.
While the program is expected to begin taking applications on January 15th, 2019, Simpleray maintains a deadline of November 15th. This deadline will help us:
- File any paperwork needed with your utility company
- Get any required financing in order
- Have a time cushion in case of any unexpected delays
- You would receive the Adjustable Block Program payment in addition to available tax credits and any savings on your electric bills.
- The sooner you apply, the higher payout you could get.
- If your array is on and your solar company has taken all of the proper steps you will be paid out by the program once everything is in place.
Where Can I Learn More?
Want to learn more about the Adjustable Block Program? Check out our webinar below!