Solar Investment Tax Credit (ITC) helps support the solar energy industry throughout the United States; solar energy helps produce clean electricity and jobs. The ITC is a 30% tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. This allows homeowners to apply the credit to their income taxes. The credit is used when residential customers purchase solar systems and have them installed on their homes. When commercial customers have a solar system installed, the business that installs, develops and/or finances the project gets the credit.
The ITC is based on the amount of investment in solar property.
Net Metering is a billing mechanism that allows customers to feed electricity, that has been generated from solar power, back into the grid. Customers get credited for this extra electricity. These credits can be earned when you’re not using the solar powered electricity, for example when you’re not home during the daytime. These credits can then be used at night or during winter months when the sun isn’t out as often. Commercial customers can also use these credits towards marketing or other projects. Net metering allows utility customers to generate their own electricity cleanly and efficiently. Net metering also increases demand for solar energy systems thus creating more clean jobs in the solar industry.
Are you a ComEd customer? ComEd is on board with net metering! If you are a residential or commercial customer who owns or operates an eligible renewable electric generate of up to 2,000 kW, you may qualify for net metering. Visit ComEd to see if you are eligible.
Net Metering & Interconnection
Solar Renewable Energy Credits (SRECs) are a specialized form of Renewable Energy Certificates (RECs). SRECs are a solar incentive that allows customers to sell credits to their utility. SRECs are created for each megawatt-hour of electricity that a solar energy system generates.
The policies that help promote SRECs and SREC markets are renewable portfolio standards (RPS). These policies require utilities, such as commercial electricity retailers, to provide a specific percentage of energy produced by renewable sources. Therefore, these retailers must obtain RECs as proof that they are producing renewable energy or have paid someone else who is producing renewable energy.
SRECs can be bought and sold in an open market setting. SRECs are good because the electricity that is generated by a solar system is the same electricity that is generated by a traditional power plant. Therefore, we can substitute the traditional electricity with clean and renewable electricity. Residential and commercial customers involved in the SREC markets can reduce their costs of electricity by selling these SRECs. However, when doing this, these customers can no longer say they produce green energy since they are selling to utilities.
RECs: Making Green Power Possible