Community Solar

Illinois is now one of the hottest markets for community solar

Illinois is now one of the hottest markets for community solar
Summit Ridge Energy developed the 2.495 MW Speedway Solar project 10 miles south of Joliet, Ill. The project is the 75th community solar farm in ComEd's Northern Illinois service territory. (Courtesy: Summit Ridge Energy)

“Residential customers don’t wake up and say: I need to go sign up for community solar,” laughs Perch Energy President and CEO Bruce Stewart. If only it were so simple for a man whose business model is built around those very subscribers. “But if you’re able to bring savings, an opportunity for them of 20% off, that’s a pretty impactful opportunity.”

Who would say “no” to a discounted power bill? In times like these? Nobody.

And that’s exactly what developers and utilities are counting on as community solar ramps up in Illinois, which now boasts the fourth-largest operational capacity in the United States. According to the Institute for Local Self-Reliance (ILSR), in the first quarter of 2023 Illinois hit 107 total projects with 207 MW operational capacity.

But why now?

Federal and state legislation has encouraged community solar growth, in particular Illinois’ The Climate and Equitable Jobs Act (CEJA), which was enacted in September 2021. It expanded the state’s community solar category by an additional 250 MW in annual capacity, including 75 MW of new generation to be built in the southern three-quarters of the state (an area served by Ameren Illinois, MidAmerican, Mt. Carmel, and others) and 175 MW of new generation in the northern-quarter of Illinois including Chicago, which is dominated by ComEd.

CEJA also bolstered the budget of Illinois Solar for All (ILSFA), a program incentivizing community solar development to benefit low-income communities through the purchase of Renewable Energy Certificates (RECs).

The U.S. Environmental Protection Agency explains Renewable Energy Credits

The Biden administration, meanwhile, has set an ambitious target of powering 5 million American homes with community solar projects by 2025.

That’s precisely where legislation and humanity intersect. Forty percent of those ILSFA dollars subsidize low-to-middle-income (LMI) customers for community solar participation. Thirty-five percent go toward LMI community solar pilot projects, and 25% to incentives for non-profits and public facilities.

“That accelerates the return on the initial investment of these projects,” asserts Stewart.

For his company, Perch Energy, the rush of activity in Illinois provides an opportunity to introduce the benefits of solar energy to customers who literally don’t own the roof over their heads- the people who will benefit most from an estimated 20% or more savings on their power bills.

Stewart likens subscribing to solar to using a rideshare. “You don’t need to own the car to get the ride. And you don’t need to own the apartment to actually utilize it,” he explained. “You don’t need to buy the panels and put them on your roof in order to be able to have a shared use of that entire farm. It does, by its very nature, democratize the availability of solar.”

Perch is partnering with Nuveen to expand access to clean energy savings to the latter’s portfolio of affordable housing units and residential apartments.

SAVE THE DATE! The next edition of the GridTECH Connect Forum will be held in Orlando, Florida on February 26, 2024. We’re bringing together developers, utilities, and regulators to take on the critical issue of DER interconnection in the Southeast. Register to secure your seat today.

Small projects, big impact

Projects in Southern Illinois are already making a difference in their communities. Cenergy Power announced Monday that it received a Community-Driven Community Solar (CDCS) Award from the Illinois Shines Program for its 5 MW solar project in Madison County, Illinois. Four other such ventures have also been selected as CDCS projects in the Ameren Illinois utility region in 2023. 

Cenergy is assisting in educating its customers, and coordinating with the Edwardsville Community Foundation, on awareness campaigns of the power bill savings for local subscribers of the clean energy generated by the project.

“At the end of the day, creating diversity of customers who can access new technologies is really, really, really important.”

– Bruce Stewart, President and CEO of Perch Energy

Ultimately, education is a major part of the battle for Perch too. Stewart is spreading his gospel state by state, as legislation allows. He says he’s also seeing growth in community solar development to benefit LMI customers in Massachusetts, New Jersey, and New York.

“It is changing the complexion of the electricity grid, increasingly making it greener and greener,” he says. “And then you have the opportunity for consumers themselves, to avail themselves and subscribe to it and get a savings benefit from it. So those are pretty powerful elements.”

This story includes reporting from the Associated Press

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