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* 1. Page 12; Price Adjustment Cap for Changes to REC Prices for Waitlisted Projects

To minimize periods of time without available capacity in each Program Year and to provide a predictable path forward for Approved Vendors in the case where capacity is depleted prior to the conclusion of the Program Year a 20% cap will be implemented. Beginning with the 2024-25 Program Year, the IPA will employ a REC price adjustment cap for all waitlist DG projects, meaning that any DG project that is waitlisted during any program year will receive a REC price that is within a 20% differential from REC prices posted for the Program Year which the project was waitlisted. This adjustment cap will last for one calendar year only. If a project remains on the waitlist for over one calendar year the project will receive the price associated with the block of capacity available when the project is selected off the waitlist.

Example.) If the REC price for the small DG category, 0-10kW AC, is $60/REC in a given year, then any small DG project that might be waitlisted in that program year would be guaranteed to receive a REC price between $48/REC and $72/REC, regardless of the REC prices approved for the following Program Year.

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* 2. Page 15; Public School

A public school is defined as a distributed generation or community solar project that is located on public school land. Public schools include public schools as defined under Section 1-3 of the Illinois Code and includes public institutions of higher education, as defined in the Board of higher Education Act.

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* 3. Page 20; Block Structure

An increase of the overall Program size to 800MW annually resulted in larger Small DG and Large DG blocks (142MW each). Elimination of the distinction between Group A and Group B for Small DG and Large DG blocks will help meet the demand for more development than currently allowed for with the current percentage split in Group A. The current percentage split is 30%/70%. This approach allows for additional capacity to potentially support additional Group A Small DG and Large DG projects without significant resultant RPS budget impacts and without altering the statutory balance between categories. As this change is meant to enable more capacity for distributed generation projects statewide, removing group capacity distinctions will not impact the REC pricing approach taken for Small DG and Large DG projects. Small DG and Large DG projects will retain Group A and Group B distinctions for purposes of establishing REC prices only.

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* 4. Page 26; Changes in REC Prices and Adders

a. In response to the Program’s shift from a declining block price structure to an annual block structure, and in an effort to eliminate gaming opportunities, projects submitted to the Program will not be permitted to receive a REC price higher than the price available at the time of its initial submission to the Program (i.e., an application cannot be withdrawn and resubmitted in order to receive a higher REC price). In the case where a project has been continuously waitlisted, it will receive the REC price associated with the block of capacity to which the project is assigned when the project is selected off the waitlist. The only exception to this general rule is the REC adder being offered to AVs that take on stranded customers.

b. REC adder – an increased price in the REC Contract for RECs generated by projects that were stranded and then “unstranded.” (This adder is not yet finalized by the Agency). Projects will be eligible for the REC adder when a new Approved Vendor takes on a customer that had been “stranded.” The Program Administrator maintain an internal list of stranded customers and an Approved Vendor who is considering taking on a customer will be able to ask for determination from the Program Administrator on the stranded status. If taken on, a new SDF will need to be signed. During the 2024-25 program year the amount of the adder will be determined by the IPA.

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* 5. Page 31; Approved Vendor Overview and Requirements

Participation in the Program takes place through Approved Vendors. By having only Approved Vendors eligible to receive direct payments through the Program – i.e., ensuring that any entity receiving a REC Contract is registered with and vetted by the Agency, and has met condition predicate – it is possible to monitor compliance with Program requirements, ensure the accuracy and quality of information submitted, and reduce the administrative burden on the contractual counterparties. This model benefits consumers because they will be able to verify that an entity that proposes to develop a PV system for them or sell them a subscription to a community solar project is a legitimate entity participating in the Program. An Approved Vendor that fails to live up to the requirements of the Program and is a ‘bad actor’ could have a significant negative impact on the entire renewable energy market in Illinois that would extend beyond just its own action. It is important for the Agency to have the ability to monitor the Program and ensure high quality performance by the Approved Vendors.

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* 6. Page 50; Installer Requirements

A system must be installed by a qualified person(s). The following definitions of “qualified person” and the term “install”, as taken from Title 83, Part 468 of the Illinois Administrative Code, will be used to evaluate compliance with this requirement:

“Qualified Person” means a person who performs installations on behalf of the certificate holder and who has either satisfactorily completed at least five installations of a specific distributed generation technology or has completed at least one of the following programs requiring lab or field work and received a certification of satisfactory completion. To be considered a “qualified person”, the experience and/or training relied upon must be with the same type of distributed generation technology for which the qualification status is sought.

1. An apprenticeship as a journeyman electrician from a DOL registered electrical apprenticeship and training program;

2. A North American Board of Certified Energy Practitioners (NABCEP) distributed generation technology certification program;

3. An Underwriters Laboratories (UL) distributed generation technology certification program;

4. An Electronics Technicians Association (ETA) distributed generation technology certification program;

5. Or an Associate in Applied Science degree from an Illinois Community College Board approved community college program in the appropriate distributed generation technology.

“Install” means to complete the electrical wiring and connections necessary to interconnect the new solar project with the electric utility’s distribution system at the point of interconnection between the project and the utility. “Install’ in this Part specifically dos not mean:

1. Electrical wiring and connection to interconnection the new solar project performed by utility workers on the utility’s distribution system;

2. Electrical wiring and connections internal to the new solar project performed by the manufacturer;

Tasks not associated with electrical interconnection of the new solar project and the utility, including those relating to planning and project management performed by individuals such as an inspector, management planner, consultant, project designer, contractor, or supervisor for the project or their employees.

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* 7. Page 51; Expansions

An expansion price will be adjusted to account for the current block price at the size of the combined system minus the price paid to the original system.

Example.) a 10kW system initially receives $85.10/REC with an estimate of 100 RECs to be produced over the contract period, for a total payment of $8,510. 15kW additional solar is to be installed after the small DG and large categories have transitioned to the next block price. Because the new system with this addition would total 25kW, the total system size in now in the >25kW size category. We’ll assume the next block is priced at $75.55/REC. Assuming the expansion would produce 150 RECs over the contract period, a calculation must be performed as if the system were a 25kW system at the current block price. This value would be 250 RECs * $75.55/REC = $18,887.50. The previous payment of $8,510 must be subtracted, leaving a total contractual payment of $10,377.50 for the new expansion. There will be no prorating of the time the original system was in operation when making this calculation. The contract term for the original system will remain the same, and the contract term for the expansion will begin the date the expansion commenced operation. Because the expansion moved the total system size from the small DG category to the large DG category payment for the expansion will be paid over a quarterly period. While the original system will remain under its current contract. *This example was adjusted to show the effects of payment when changing category size.

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* 8. Page 57; System with Battery Backup

All systems that include a battery shall be identified to the Program Administrator. All systems which include a battery shall be electrically connected in a manner which ensures that any non-solar generated electricity used t charge the battery is not later metered as solar generated power. This can be done in one of three ways:

i. The meter used to report production is electrically located before the battery charger and does not measure any power that is drawn from the battery bank.

ii. A net meter is connected to the system that runs in reverse when any non-solar power, including on-site generator power, is used to charge the battery bank.

iii. The inverters’ software setting is configured to prevent the battery from charging via line power. This software setting may not be changed for the duration of the project’s participation in the Illinois Shines Program.

If a system contains a battery backup, a battery schematic diagram must be submitted with the application via the Part II application. The diagram should contain the following:

i. Battery Backup (“BB”) DC Voltage

ii. BB Configuration (AC Coupled or DC Coupled)

iii. BB Conductor Size

iv. PV Conductor Size

v. BB Fuse/Breaker Size

vi. Inverter Contains DC/AC Disconnects

vii. Inverter Output Conductor Size

viii. Inverter Fuse/Breaker Size

ix. BB Contains Transfer Switch or Microgrid Interconnect Device

x. BB, PV, and Standby Loads are Isolated During Grid Outage

xi. AC Combiner/Load Center(s) Sized Properly

xii. PV Interconnection Type (Supply, Load, or Feeder)

xiii. Battery Charge Method (PV(DC) or Grid)

xiv. Battery Discharge Method (PV(DC) or Grid)

xv. Battery Output Meter

xvi. PV Output Meter *All meters used in the battery backup must satisfy the metering requirements of the Program.

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* 9. Page 61; Prevailing Wage Requirements

As outlined in Section 1-75(c)(1)(Q) of the IPA Act, project proposals must comply with Illinois Prevailing Wage Act requirements unless an exception found in Section 1-75(c)(1)(G)(iv) of the IPA Act applies. For Program administrator, Illinois law provides an exception only for the following types of projects from prevailing wage requirements:

i. Large DG project (greater than 25kW AC) that were on a waitlist as of the Program’s reopening on December 14, 2021;

ii. Distributed generation projects (Large or Small) that either:

1. Serve a single-family or multi-family residential building, or

2. Serve a house of worship and are not greater than 100kW AC (aggregated with any co-located projects);

iii. Distributed generation projects (Large or Small) for which construction can be demonstrated to have been completed before September 15,2021, the effective date of the Public Act 102-0662.

If a project is residential then one of the following criteria must be met:

i. Electric bill demonstrating residential rate classification;

ii. Property classified as residential for purposes of property tax; or

iii. Structure usage is at least 75% residential.

If a project is a “House of Worship” and is 100kW AC or less in size, the applicant will need to provide:

i. A signed attestation; and

ii. Proof of exemption from taxation pursuant to Section 15-40 of the Property Tax Code

All projects effected by Prevailing Wage must have the county prevailing wage rates posted on site during construction.

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* 10. Page 91; REC Delivery

All systems must be registered in either GATS or MRETS tracking registry. For systems larger than 5kW, the first REC must be delivered within 90 days of the date the system is Energized/Part II verified. For systems equal to or less than 5kW, the first REC must be delivered within 180 days of the date the system is Energized/Part II verified. The delivery term will begin on the first day of the month following the first REC delivery and will last 180 months for projects under 15 year contracts and 240 months for projects under 20 year contracts. Any RECs that were created prior to the contract signing are not part of the contract and will not be transferred to the utility under the contract or purchased by the utility under the contract.

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* 11. Page 67; Application Fee

An application fee equal to $20 /kW, not to exceed $15,000.00, will be required for each project. This application will be paid to the Program Administrator at the time the batch is submitted and is non-refundable. The application fee payment will be part of the batch submission process and the fee will be automatically calculated by the application portal.

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