Illinois signs clean energy bill, will drive investments for solar PV, battery storage and VPPs

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With the signing of CRGA, Illinois aims to tackle rising electricity costs “driven by private grid operators” and expand cost-saving energy resources, while growing Illinois’ clean energy economy. The legislation will take effect on 1 June 2026.

In terms of lowering energy costs, the legislation aims to achieve this with the establishment of a state procurement of 3GW grid-scale battery storage by 2030; the creation of virtual power plant (VPP) programmes from utilities which will allow households with solar panels, batteries and electric vehicles to participate in or create an Integrated Resource Planning (IRP) process that aims to find cost-effective ways to keep energy bills low and make necessary adjustments to state programmes.

These measures are aimed at lowering energy costs. The programmes from the legislation will also require utilities to promote energy equity for low-income households.

Moreover, the CRGA aims to drive the clean energy economy, create new jobs and accelerate the creation of new energy projects across the state.

This will be achieved through the search for new clean energy opportunities by directing the Illinois Power Agency (IPA) to propose long-term procurement agreements; establishing a Solar Bill of Rights that would ensure citizens served by municipal and cooperative utilities have the possibility to install rooftop solar panels or extend clean energy siting reforms for energy storage projects, too.

The legislation will also benefit community solar development in Illinois with the increase of the maximum size for these projects to 10MW. The state passed its first community solar legislation in 2016 and has since then seen 444MW of new community solar capacity in the state up until Q3 2025, according to data from the Institute for Local Self-Reliance. Illinois is one of the leading states in terms of community solar installations and ranks fifth among states with community solar development.

JB Pritzker, said: “The Clean and Reliable Grid Affordability Act sets a national standard in the effort to lower energy costs and marks a historic step forward in our clean energy vision. Once again, Illinois is stepping up where the federal government is failing.

Illinois is among the US states with the highest growth projection in the coming years, according to trade body the Solar Energy Industries Association (SEIA). SEIA forecasts 14.6GW of new solar PV over the next five years, the fourth most across all US states. This would more than double Illinois current installed solar PV which sat at 6.5GW at the end of the third quarter of 2025.

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