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Illinois Solar Renewable Energy Credits (SRECs)

If you’re considering solar in Illinois, Solar Renewable Energy Credits—commonly called SRECs—are one of the most important incentives to understand.

Illinois SRECs help reduce the cost of going solar for homeowners, businesses, nonprofits, public entities, and farms by placing a financial value on solar energy production in our state. Below, we break down how SRECs work, who qualifies, and how they fit into the broader Illinois Shines incentive program.

If you’re ready for a custom assessment that estimates your SREC value alongside other available incentives, we’re here to help.

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SREC Value Increases for Homeowners in 2026!

Great news! For the 2026-27 Illinois Shines program year, Illinois has approved higher SREC values for eligible residential solar projects. Learn more about the 2026 Illinois SREC incentive increase in our blog and why this program year presents a strong opportunity for homeowners considering solar.

What are Illinois
SRECs?

Solar Renewable Energy Credits (SRECs) represent the environmental attributes of solar energy produced by a solar photovoltaic (PV) system.

In Illinois, one SREC is issued for every 1,000 kilowatt-hours (1 megawatt-hour) of electricity your solar system produces. These credits are sold through the Illinois Shines program, also known as the Adjustable Block Program (ABP), and their value helps offset the cost of installing solar.

When SRECs are sold:

  • The buyer (utility) receives the environmental attributes of that renewable energy
  • The solar system owner continues to use the electricity the system produces without claiming the environmental benefit
  • The sale of SRECs helps support the development of solar power across Illinois

SREC payments are separate from the savings you receive by using the electricity your system generates.

What Does it Mean to
Sell the Environmental Benefit of Solar?

While the SREC sale is a paper transaction, there are safeguards to prevent the same SREC from being sold more than once.

Once the system owner sells their SRECs, their solar system is producing green energy on behalf of the State of Illinois.

Participation in Illinois Shines is optional, and the program provides significant cash benefits, offers consumer protections and Approved Vendor vetting, as well as support for the development of a diverse and inclusive solar workforce in Illinois.

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How The
Illinois Shines Program Works

The Illinois Shines program manages SREC incentives and other solar support mechanisms statewide.

Under Illinois Shines
  • The Illinois Power Agency (IPA) oversees procurement to help Investor Owned Utilities meet Illinois’ Renewable Portfolio Standard (RPS) goals—40% energy from renewable sources by 2030, and 50% by 2040.
  • An Illinois Shines Approved Vendor facilitates SREC contracting between the system owner and utility (buyer).
StraightUp Solar REC Solutions is an Approved Vendor

As an Illinois Shines Approved Vendor, StraightUp Solar REC Solutions helps customers manage this process transparently from start to finish. This direct relationship allows our dedicated experts to submit applications efficiently, work directly with the program administrator, and quickly address any issues that arise during enrollment or payment.

WHAT TO EXPECT
When Navigating Illinois SRECs

Common Customer Misunderstandings

Because the Illinois Shines SREC program involves multiple entities, questions often come up early in the process. We commonly hear concerns about when incentive payments are issued, how collateral requirements work, and what happens if a home or business is sold after committing to a 15-year SREC contract. Customers are also sometimes surprised to learn that SREC values and timelines can vary based on system size, utility territory, and program year. Addressing these topics upfront helps set clear expectations and avoid confusion later.

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Where Delays Typically Occur—and How We Handle Them

Most SREC-related delays are simply the result of multiple parties reviewing project information, including utilities and Illinois Shines Program Administrators. Occasionally, delays can occur when utility billing information doesn’t match property ownership records, when sites have multiple electrical meters, or when applications require minor corrections—known as “cures”—before moving forward. When this happens, our team addresses these issues promptly and works directly with the Illinois Shines program to keep projects moving toward payment. Because of our expertise, for the majority of our customers these reviews do not result in meaningful delays.

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Recover Significant Solar Savings
with Illinois SRECs

The value of each SREC is set on a defined schedule for each Illinois Shines program year and it generally declines as program blocks reach capacity. Program years run from June 1 through May 31. Broadly speaking, this means that the sooner you get started, the greater your incentive savings.

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Savings for Homeowners

Depending on system size, utility territory, and program year, Illinois SRECs can help eligible homeowners save 20-45% off total solar project costs. 

Great news! For the 2026-27 Illinois Shines program year, Illinois has approved higher SREC values, making now the best time to maximize your incentive rate. Start a quote!

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Savings for Businesses & Organizations

Eligible businesses and organizations can typically recover approximately 30-35% off total solar costs through the SREC protram, depending on system size, utility territory, and your enrollment timing.

Reach out for a custom solar assessment to discover how much you can save.

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Who Is Eligible
for Illinois SRECs?

Illinois SRECs are available to:

  • Homeowners
  • Commercial property owners
  • Small businesses
  • Nonprofits and public entities
  • Farms and agribusiness

Eligibility is based on:

  • System ownership
  • System size
  • Program capacity and enrollment timing

Important notes:
Illinois Shines SRECs are available statewide, regardless of whether their electricity is supplied by an investor-owned utility or electric cooperative.

Homeowners with systems installed under a power purchase agreement (PPA) or lease will not receive SREC payments since they do not own the system. Instead, the system owner (third-party investor) retains and sells the SRECs, which can help lower your PPA or lease payment rate.

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How Are SREC Payments Structured?

After you sign a Purchase Agreement with StraightUp Solar, you’ll then sign an SREC contract with an Illinois Shines Approved Vendor–in our case, StraightUp Solar REC Solutions.

This SREC contract covers the first 15 years of expected solar production and is structured based on the system’s AC size:

  • Systems under 25 kW AC: Receive a one-time lump sum payment from your Approved Vendor after the system is installed and energized. Starting June 1, 2026, this payment changes to distribution over 7 years where 50% of the SREC value is paid in the first year, the remaining 50% is divided into quarterly payments through years 2-7.
  • Systems 25 kW AC and larger (capped at 5 MW AC): Receive one lump sum payment of 15% in year one and 85% distributed equally in quarterly payments over seven years.

Your SREC contract outlines the maximum number of SRECs to be purchased, the price per SREC, any Approved Vendor fees, Program Collateral and the total incentive value.

How SRECs Fit Into Your Overall Solar Savings

SRECs are one piece of a broader incentive picture that may include:

  • Utility bill savings from on-site solar production and net metering
  • Utility-specific incentives, such as the Smart Inverter (DG) Rebate or Energy Storage rebates (both available in Ameren Illinois and ComEd territories)
  • Commercial federal solar tax credits and depreciation

Because incentive structures, eligibility, and timing all matter, understanding how these pieces work together is key. Discover how solar savings can stack up for you, from residential solar incentives to combined incentives for commercial, nonprofits and government entities, and farms.

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How Can SRECs Apply to Your Project?

Whether you’re a homeowner exploring solar for the first time or a business evaluating a commercial system, a custom assessment is the best way to understand how Illinois SRECs and other incentives apply to your situation.

We’ll walk you through estimated solar production, SREC eligibility and timing, available incentives, and clear next steps.

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Why Work With StraightUp Solar?

StraightUp Solar has been installing solar in our region since 2006. Through this 20 year track record, we’ve brought more than 3,200 solar projects to light for our Illinois and Missouri neighbors. 

Guided by our company CLEARE values, we help homeowners, businesses, and organizations navigate complex incentive programs with clarity and confidence, so they can make informed decisions and realize strong long-term value from solar. 

Our direct relationship with Appoved Vendor StraightUp Solar REC Solutions allows us to:

  • Manage SREC contracts directly
  • Provide clear explanations without unnecessary handoffs
  • Support customers well beyond installation day

If you’re looking for straightforward answers and deep expertise with Illinois’ incentives, we’re here when you’re ready.

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SREC Timeline:
What to Expect

While every project is a little different, SREC enrollment generally begins early in the solar process and continues through installation and energization.

In most cases, the Illinois Shines application is submitted after final system design and any required utility approvals are in place. Installation and utility permission to operate typically occur while the application is under review. Final verification happens after the system is energized, with initial SREC payment typically issued within 9-12 months.

Because timelines can vary based on system size, utility requirements, and program review schedules, we guide customers through each step and keep the process moving as efficiently as possible.

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FAQs: Illinois Solar Renewable Energy Credits

Illinois SRECs can reduce the total cost of a solar project by 20-45% for homeowners and 30-35% for businesses, depending on system size, utility territory, and program year (which runs June 1 through May 31 yearly). Incentive values change annually, which is why a custom quote is the best way to estimate your actual savings.

SREC payments are issued after your system is installed, energized, and verified through the Illinois Shines program. Timing varies, but most customers receive their initial payment within 9-12 months after final verification is complete.

No. StraightUp Solar submits and manages the Illinois Shines SREC applications on behalf of our customers through StraightUp Solar REC Solutions. We handle the paperwork, respond to program questions, and resolve issues directly so customers don’t have to navigate the process on their own.

Most delays are administrative and occur while multiple entities review project information. Common issues include utility account discrepancies, interconnection complexities for larger systems, or additional documentation requests—known as “cures.” The majority of customers do not experience delays related to cures, and when they do arise, we address them as quickly as possible.

SREC contracts are tied to the system, not the individual owner. If a property is sold, the SREC agreement typically transfers to the new owner. We explain these details upfront so customers understand how incentives work over the long term.

We manage SREC enrollment strategically and transparently. In some cases, customers may have options related to timing, program year participation, or enrollment approach. We explain the potential benefits and tradeoffs of each option and let the customer decide what best fits their goals. Our role is to educate, not default to a one-size-fits-all approach. Educate Everyone is one of our company CLEARE Values.

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"The installation process was so incredibly easy. I couldn’t believe when I was asking questions it seemed like every answer was, “we take care of that.” When the team got here they were amazing… The people that were doing the job believed in what they were doing… Working with this company was just really a great experience all the way around."
Julie D.Waterloo, Illinois Homeowner
"I come from a long line of coal miners, my brother even used to work at a coal mine. I would love to see these jobs converted over to alternative energy. I think this is a great opportunity for us as homeowners and business owners to gain control of our energy costs rather than be at the mercy of the utility."
Greg T.Carterville, Illinois Homeowner
"The people at StraightUp [Solar] have made each and every step in this process so easy and stress free for us. We can honestly recommend StraightUp Solar to anyone who considers going solar."
Rainer G.Normal, Illinois Homeowner
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