Distributed Solar not in Draft IPA Procurement Plan

09 Sep 2011 4:05 PM | Michelle Hickey

The IPA’s draft plan proposes to buy all SRECs (solar renewable energy credits) needed to comply with the Illinois Solar Carve Out through a competitive auction designed with large, utility-scale projects in mind.  If past procurements serve as an example, participation requirements will be too complex and transaction costs will be too high for distributed solar developers and owners to participate.  There is no separate procurement program proposed for small and mid-size rooftop and ground mounted systems.  Without a separate procurement program, it is likely that our state’s very aggressive Solar Carve Out (which will require output from about 600 MW of installed solar by 2015) will be met entirely with SRECs from utility-scale solar projects, some located outside of Illinois.

ELPC strongly encourages you to submit comments on the 2012 Draft Procurement Plan and tell the IPA that Illinois needs a solar procurement program that will drive real expansion in Illinois’ solar industry.   A template is attached to provide some sample language and comments, but unique and personal comments will carry more weight than a standard form letter, so please make sure to modify this so that it reflects your own voice.  Please abstain from using these comments to promote any single project or individual agenda, but focus on the broad policy objective.

Comments are due next Wednesday, September 14th, at 5:00 pm and should be emailed to the IPA in care of Julie Musselman Oost.  There are public hearings on the Draft Plan on September 9th in Springfield and September 13th in Chicago

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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