Several changes to the structure of utility rates are coming that will impact Illinois Solar for All (ILSFA).
New electric low-income discount rate structures will be implemented in late 2025 through early 2026. Final information about the ComEd low-income discount rate is expected in March 2025 and final information on the Ameren low-income discount rate is expected in the fall of 2025. Once these rates are finalized, there will be a transition period before they are implemented through each utility’s billing system and can begin providing savings to low-income participants.
Net metering for new solar participants will change to supply-only net metering starting January 1, 2025. Historically, Illinois utilities have been required to provide participant bill credits for excess energy produced by their residential or small commercial solar project at the full utility retail rate; however, under the state’s Climate and Equitable Jobs Act (“CEJA”), net metering for new solar participants will change to supply-only net metering starting January 1, 2025. This means that participants interconnecting new renewable energy systems to the grid in ComEd, Ameren Illinois, or MidAmerican territories after December 31, 2024, participants will be credited for excess electricity that their solar project sends to the grid at their electricity supply rate rather than the full retail rate. Existing net metering participants will not be impacted by this change. Residential solar participants are also now eligible to apply for a Smart Inverter rebate that will provide additional value from their systems.
The Illinois Power Agency (the Agency) recognizes that these changes will impact ILSFA participants and is taking the following actions to mitigate the impact. First, savings calculations to meet the ILSFA 50% savings requirement will continue to be calculated based on a bill that does not factor in a low-income discount rate. The value to a participant of being on a low-income discount rate will be considered additive to the savings from the solar project. Second, as the 2026 Long-Term Renewable Resources Procurement Plan (the Plan) is developed, the Agency expects the ILSFA savings requirements will be revised and recalibrated. That Plan will take effect beginning in the June of 2026. The Agency also notes that the value of the Smart Inverter rebate may increase in the future. Additionally, participants receiving the Smart Inverter rebate may continue to receive ongoing compensation for the value their smart inverter provides to the distribution grid. While electing to take the Smart Inverter rebate is not required for ILSFA projects, the rebate can provide an additional revenue stream for solar projects. Taking this rebate will replace the Legacy Net Energy Metering (NEM) status. The timing of the changes to the Smart Inverter rebate is not currently known, but it is not likely to be implemented until late 2025 or early 2026.
The Agency recognizes that these changes will impact the value proposition of going solar for income-eligible participants, and the Agency will strive to adapt the Illinois Solar for All program to ensure that participants receive tangible economic benefits through their participation.