ABP: Are expansion projects eligible for the ABP Program?

Yes, expansions to systems that are already under a Renewable Energy Credit (REC) contract in the Adjustable Block Program (ABP) in Illinois are eligible for the program if they meet certain requirements:

• An expansion to a system that is already under a REC contract in the Program must be independently metered (with a separate GATS or M-RETS ID) and must be separately enrolled in net metering with the utility.
• The expansion must comply with all program requirements that are in effect at the time the expansion application is submitted.
• If an expansion would move the total system size from the Small DG category into the Large DG category, and that category is operating on a waitlist, the expansion would be added to the waitlist in the same manner as a new system in that category while the existing system continues to receive REC payments under the previously contracted terms.
• Expansion applications submitted prior to the corresponding Group/category reaching full capacity will not be added to the waitlist and instead will be eligible for Part I review.

(See on page 53: ABP Program 2024-2025 Program Guidebook) 

2024/2025 REC Delivery Contracts MW Limitations

An Approved Vendor may apply to the Program with up to 5 MW under the 2024 REC Delivery Contracts and later REC Delivery Contracts.

Under the 2024 and 2025 REC Delivery Contracts, projects may be expanded as long as the total collocated capacity does not exceed 5 MW.

REC Pricing Under Expansion

The 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.

For example (based on REC prices and the Small DG threshold prior to September 15, 2021), a 10 kW system in Block 1 Group A initially received $85.10/REC with an estimate that it would produce 100 RECs over the contract period, for a total of $8,510.

A 10 kW addition is planned once the Small DG and Large DG categories in Group A have moved to Block 2. Because the new system with this addition would total 20 kW, the total system size is now in the 10-25 kW size category; for Block 2, Group A, that price is $75.55/REC.

Assuming the expansion would also produce 100 RECs over the 15 year contract life, a calculation must be performed as if the system were a 20 kW system at the current block price. This value would be 200 RECS * $75.55/REC = $15,110. The previous payment of $8,510 must be subtracted from this value, leaving a total contractual payment of $6,600 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.