Illinois governor signs bills to ensure solar benefits farmers, rural communities

Governor Rauner has signed two bills that will help ensure solar development benefits farmers and rural communities in Illinois. The state’s solar industry worked with the Illinois Farm Bureau, local authorities and other stakeholders to shape SB 486, which creates a standard tax assessment value for solar farms in Illinois, and SB 2591, which sets standards for the construction and deconstruction of solar farms on agricultural land. The Illinois House and Senate passed both bills unanimously and Governor Rauner signed the final piece of legislation on August 10. The solar property tax legislation (SB 486) sets a standard tax assessment value for large solar installations, creating certainty around the property tax revenue that solar farms will pay to local taxing bodies, helping to fund schools, roads and other critical services. Under the legislation, each megawatt of ground-mounted solar installed in Illinois will generate an average of $6,000 to $8,000 per year in property tax revenue. The industry expects to install up to 2,000 MW of ground-mounted solar farms by 2021, which will create a total $250-$350 million in property tax revenue over a 25-year lifespan. Under Illinois’ funding formula, approximately 70% of this revenue will be dedicated to funding schools.