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Net metering is not disappearing in 2025, but it will undergo changes under state law.
Here’s what we know as of July 2024:
What is Net Metering?
Net metering benefits solar users by allowing them to receive credits for excess solar electricity sent to the grid. Under Illinois law, investor-owned utilities (ComEd, Ameren, MidAmerican) are required to offer net metering for renewable energy generation. This means you can sell excess power back to the utility and receive credits on your electric bill, which covers the net electricity used plus any fixed delivery charges.
Net metering became simpler for Illinois solar users in 2008 with new legislation.
What Changes Are Coming in 2025?
Starting January 1, 2025, the net metering benefit will be reduced for new solar customers.
Key Points:
- Existing solar customers: Those who already have solar panels will keep the full net metering benefits for the life of their system.
- New solar customers: Although the net metering benefit will be reduced, solar will still be a valuable investment.
How Will Net Metering Benefits Change After 2025?
Current net metering provides 1:1 credits on your bill for supply, delivery, and taxes and fees.
- For existing panels: You will continue to receive full net metering benefits on all three bill sections for 30 years from the installation date.
- For new installations after January 1, 2025: Net metering credits will apply only to the Supply section of your bill. Additionally, you’ll be eligible for a “Distributed Generation (DG) Rebate,” which requires a smart inverter. The rebate amount will be at least $300 per kilowatt of capacity. This new approach offers a larger upfront benefit but a reduced net metering benefit over the system’s lifetime.
What Should You Do If You’re Considering Solar?
To secure full net metering benefits, you should consider installing your solar panels and having them approved before the end of the year.
Important Deadlines
ComEd
To ensure review before December 31, 2024, submit all required documentation by 5 p.m. Central on December 13, 2024.
Ameren
All required documentation must be received by Ameren Illinois by 5 p.m. Central on December 13, 2024.
If you have questions about these deadlines, contact your utility provider.
Will Your Savings Be Affected?
- For existing panels: Your net metering compensation will remain unchanged.
- For new panels: You will still save on your utility bills, but the net metering benefit will be lower.
Why the Change?
As solar adoption in Illinois has increased, changes in net metering are typical. The reduction was planned in the Future Energy Jobs Act of 2016. Although the transition was extended, it reflects the state’s growing solar market.
Community Solar Program
The Community Solar program is unaffected by these changes. Participants in this program can subscribe to off-site solar farms and receive credits on their electric bills based on their subscription’s energy output.
