Illinois Shines is a state-administered program where utilities support renewable energy by compensating customers who install solar and help them meet their clean energy targets. 

The program provides payments in exchange for delivery of Renewable Energy Credits (“RECs”) generated by PV systems over 15 or 20 years, dependent upon system type. The project must apply and enroll in the program, working with a vetted program Approved Vendor, like Cedar Creek Energy.  The REC payments are valued by the Illinois Shines program, and approved through agreements between Illinois electric utilities, the Approved Vendor, and the final energy user.   

While participating in this program, the owner of the solar array enjoys the power savings generated from the array as they consume the power on site, and the REC payments, received from their vendor.  Visit here for more information on the program. 

RECs, or “Renewable Energy Credits” are widely used in energy markets to represent the environmental attributes of the electricity generated from renewable sources, but not the electricity itself.  With RECs, the amount of renewable energy sent to the utility grid is tracked, and a REC is issued when one megawatt-hour of electricity from a renewable energy source is produced.  

Each state may value RECs differently, depending on whether they are actively encouraging utilities to add more renewables to their portfolios. When a state requires utilities purchase a % of green power, buying RECs from rate payers is one way to meet those goals.  Utilities can build renewable generation (wind, solar, etc) and own the corresponding RECs, and they can offer renewable programs to their rate payers by which they trade financial incentives for the ownership of their rate payer’s RECs.  

Illinois Shines has set incentive amounts that are paid for RECs produced by solar projects participating in the Program. The incentives are paid to participating Approved Vendors and savings are passed on to customers.

How much are the REC payments?  

The payments depend on how much energy the system is generating (size), the type of project, and the utility. They also depend on the agreed upon financial arrangement between the end user of the solar array (site owner) and the Illinois Shines approved vendor.