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Everything You Need to Know About the Illinois Adjustable Block Program (IBAP)

Are you grappling with the growing pressure to meet environmental, social, and governance (ESG) targets? If so, you''re not alone. 

The pursuit of sustainability has become a crucial aspect of corporate responsibility, and organizations across the country are seeking new ways to align their operations with greener practices. 

Luckily, with the Illinois Adjustable Block Program, you can do just that. Keep reading to discover how this transformative incentive can help your business to make a meaningful contribution towards a more sustainable future.

What Is the Illinois Adjustable Block Program? 

When it comes to the development of solar energy, the Illinois Adjustable Block Program stands as a pivotal initiative, providing hard-to-beat incentives for both residential and commercial consumers. 

The IL Adjustable Block Program owes its existence to the Future Energy Jobs Act (FEJA), a landmark legislation enacted in 2016. This act laid the foundation for several policies—like net metering, financial support for large-scale solar projects, and the advent of the Illinois Shines program—all of which aim to enhance access to renewable resources throughout the state. 

Key Components of the Illinois Adjustable Block Program

The Illinois Adjustable Block Program is the next step in this process, delivering additional incentives to participating consumers. It includes several components to help promote solar energy adoption, including: 

Block Structure and Progressive Pricing

The distinguishing feature of Illinois ABP lies in its pricing mechanism, which is structured on a block-by-block basis. Designed to be flexible and responsive to demand, each block has a predetermined capacity and corresponding incentive levels. 

Essentially, as more consumers participate, the current block will reach its capacity, and the program transitions to the next block. 

For example, during times of high demand and when more funding is available, additional blocks may be introduced. On the other hand, if demand in a category is lower than anticipated, a block may remain open for a longer period of time. 

It''s important to note each time a block reaches its capacity, the subsequent block in the category is offered at 4% lower than the previous block. This progressive pricing structure hopes to foster healthy competition, and encourage project developers to operate with utmost efficiency and cost effectiveness. 

Are you ready to tap into the full potential of solar energy? Don't wait! The sooner you join, the greater the rewards. Take the first step by scheduling a consultation with Pacifico Power and discover how we make it easy to crush your ESG targets.

Your Sustainable Future Starts Here!

Renewable Energy Credits (RECs)

Renewable Energy Credits (RECs) serve as tradable commodities that utility providers can purchase to fulfill their energy mandates. 

Within the Illinois Adjustable Block Program, approved vendors—who represent you, the solar project owner—handle everything from compliance paperwork and collateral requirements, to ongoing information and reporting.

From there, these vendors submit bundled projects, typically ranging from 100 kW to 2 MW (50 kW in specific cases), resulting in contracts with utility providers.

Under these contracts, vendors commit to supplying a predetermined number of RECs over a 15-year period, which utility companies are obligated to purchase at a predetermined price per REC.

How Are Renewable Energy Credits Awarded? 

When it comes to awarding RECs, the process unfolds as follows: 

  • Generally, REC contracts are awarded on a first-come, first-serve basis. However, if demand surpasses capacity by more than 200% in any category of Block 1, a lottery system determines the REC recipients. 
  • Projects not selected in the lottery are considered for approval in the subsequent block. If a block's capacity falls between 100% and 200%, all projects in that range receive Block 1 pricing, while the capacity of Block 2 is reduced accordingly.
  • Although the lottery system does not guarantee REC funding, the current status indicates that Large and Small Distributed Generation (DG) projects in Block 1 are undersubscribed, while Community Solar projects are oversubscribed.

Essentially, this means all DG contracts submitted in Block 1 are expected to receive RECs. If a lottery occurs for Community Solar categories, projects with 50% or more small subscribers will be given priority.

Understanding Eligibility Criteria for the Illinois Adjustable Block Program

To participate in the Illinois Adjustable Block Program specific eligibility criteria must be met. These include:

  • Having a solar system with a capacity of less than 5MW.
  • Being interconnected to an electric utility's distribution grid.
  • Adhering to the regulations outlined by the Illinois Commerce Commission concerning net metering and interconnection.
  • Enrolling in either a Community Renewable Generation Project under the Illinois Shines Program or a Community Solar project under the Community Solar Subscription Program.
  • By ensuring these requirements are met, the IABP ensures that only qualified solar projects receive incentives, strengthening its effectiveness and driving the expansion of solar energy statewide.

The above requirements ensure only qualified solar projects receive incentives through the IABP, delivering a fair way to propel the statewide growth of solar energy.

How Can I Apply for the Illinois Adjustable Block Program? 

Interested consumers, project developers, and solar system owners must embark on a comprehensive application process to participate in the Illinois Adjustable Block Program, which includes the following steps:

  1. Registration of an account with the program administrator's online portal
  2. Completion of the requisite application forms for either the Illinois Shines or Community Solar Subscription programs
  3. Uploading of supporting documents such as site plans, proof of zoning approval, and technical specifications for the solar system
  4. Submission of the application and supporting documents to the program administrator for review

Upon approval, you''re able to become part of the thriving Illinois solar community and start receiving financial incentives for your renewable energy production.

Embrace a Brighter Future With Pacifico Power

As an approved vendor for the Illinois Adjustable Block Program, Pacifico Power has the expertise to guide you through the entire process. Get in touch today, and together, let's pave the way for a brighter, cleaner, and more sustainable tomorrow