DCEO Announces RFA for Two Renewable Energy Grants

02 Sep 2011 5:32 PM | Michelle Hickey
DCEO Announces RFA for
Community Solar & Wind Grant and
Renewable Energy Business Development Grant

DCEO has just released a Request for Application for the Community Solar and Wind Grant Program.  This RFA is a competitive solicitation, with applications due to DCEO on or before 4:30 p.m. on October 28, 2011. Click here for program guidelines and application forms.  They may be also be accessed from the Illinois Energy Office’s website at http://www.illinoisbiz.biz/dceo/Bureaus/Energy_Recycling/Energy/Clean+Energy/.

 
The focus of the Community Solar and Wind Energy Grant Program is to support the development and implementation of distributed community and commercial-scale solar thermal, solar photovoltaic, and wind energy technologies in Illinois.
 
Proposed projects are eligible for grants up to 30 percent of eligible project costs for business entities and 50 percent for local government and non-profit entities.  The maximum grant award is $250,000.  Eligibility is limited to project costs for the purchase and installation of solar and wind generation equipment, and related metering components as appropriate.
 
Total Funding for the program is approximately $1 million for Fiscal Year 2012.

Renewable Energy Business Development Program


DCEO has just released a Request for Application for the Renewable Energy Business Development Program.  This RFA is a competitive solicitation, with applications due to DCEO on or before 4:30 p.m. on October 28, 2011.  Click here for program guidelines and application forms.  They may also be accessed from the Illinois Energy Office’s website at http://www.illinoisbiz.biz/dceo/Bureaus/Energy_Recycling/Energy/Clean+Energy/.
 
The purpose of this incentive program is  to support development or expansion of renewable energy businesses and component manufacturers. The Program targets projects that develop and expand these manufacturing sectors and corresponding supply chains while improving the economy of the State through new business development.
 
The Department will solicit and receive applications through a competitive Request-for-Application process. Proposed projects are eligible for grants up to 50 percent of eligible project cost.  The minimum grant award allowed is $100,000, and the maximum grant award is $500,000.    Eligible expenditures include the purchase and installation of machinery, equipment and new industrial systems, project necessary site improvements, technical or engineering services for process improvements in key functions, and/or the conversion of existing processes.
 
Expected total funding for the program for Fiscal Year 2012 is approximately $2 million.

Webinar Q&A

Q: There is a 2% limit on rate increases. Are you sure this is not a problem? The rate increase is in reference to the total procurement, so we do not anticipate it being an issue.


Q: I am a homeowner. Your invitation stated you may have some new information concerning Gov. Rauner's budget. That's what I'm particularly interested in. The proposed budget for 2015/2016, at this time has eliminated rebates and grants. ISEA’s position is that we will continue to advocate for the continuation of this program. There is also a legislative bill that has proposed an extension to this program through 2020 which we support and will continue to track.


Q: Can you provide an REC typical value for an average sized home with this proposed declining block program? I have a hard time explaining the value of RECs. Since Illinois has not had a REC price in the past, it’s difficult to estimate what the initial market value may be. The supplemental procurement will go a long way in establishing Illinois REC market prices. In the meantime, the Illinois Power Agency (IPA) will continue to research other markets to make the best decisions for the Illinois market. The goal, of course, is to install solar, and the purpose of the REC is to incentivize solar purchases and ensure pricing makes economic sense. As a reminder, there’s still a bit of the process left before we see what price RECs will have in Illinois. Once the legislation has been passed, and the REC price is published, we’ll update as needed.


Q: What recs are available for people who installed solar systems in 2014? If the system was energized prior to January 21, 2015, you qualify for the regular procurement event in September 2015.


Q: Does Exelon nuclear energy qualify as renewable energy with the 35% by 2030? It does not. Renewable energy is defined within the statute and includes wind, solar, and biofuels. More information can be found at http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=88&GA=99&DocTypeId=HB&DocNum=2607&GAID=13&LegID=88134&SpecSess=&Session=

It is important to note that the Clean Jobs Bill, not to be confused with other energy bills, is the only bill that focuses on renewable energy while producing 32000 jobs per year.


Q: Will clean energy that has already been produced from existing systems be considered for auction? No. The RECs will only be from the contract date of the accepted bid moving forward.


Q: If I plan to install more solar panels in 2015, are IL rebates still available, or is it dependent on Governor Rauner's budget proposal? The program for the 2014/2015 fiscal year is closed. So any future rebate availability will depend on the budget proposal. However, consider the procurement events of 2015/2016 as potential funding sources.  This scenario strongly highlights why we need to pass the Clean Jobs Bill (HB2607/SB1485) as it will provide a way to raise the status of renewable energy to equal that of all other forms of energy. Thus, any perceived dependence on rebates and grants will be removed.


Q: Evidently the 2014/20­15 rebates were frozen. Is that still the case? At this time, rebate decision letters have gone out, clarifying which will be paid and informing the owners that no further extensions will be granted.


Q: When will the specific process of solar customers contracting to be paid for future SRECs in place of the Illinois DCEO Rebate program be rolled out?­ The first supplemental procurement will be June 18, 2015. Aggregators are already available. We have a list of preferred companies here http://www.illinoissolar.org/SRECTrade-FAQ


Q: Once the REC schedule is defined, can you post some investment payback time scenarios on the ISEA blog, including the declining block ­ to let people know what is a realistic investment outlook?

We will try, however, we don’t anticipate seeing any information on this until early to mid 2016.



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