Illinois’ CRGA opens up millions of dollars to distributed BESS
Illinois enacted the Clean and Reliable Grid Affordability Act (CRGA) on January 8, 2026. Through 2026, ComEd filed the tariffs the act lays out: a scheduled dispatch program effective July 16, a net metering rider effective September 14, and a rebate rider effective October 19. Together they create the state’s first retail revenue stack for distribution-connected BESS, with no PJM interconnection or wholesale market participation agreement required.
The stack has four revenue streams. First, Illinois pays a one-time rebate of $250 per kWh of nameplate capacity. Second, hourly net metering pays every export at the full retail supply price. Third, the Scheduled Dispatch Virtual Power Plant (SDVPP) pays $10 per kW-season for summer weekday evening discharge. Fourth, exporting through PJM’s and ComEd’s coincident peaks turns the battery’s Peak Load Contribution (PLC) negative. Capacity and transmission charges then become credits.
A 5 MW, 4-hour battery will receive a rebate of $5 million. Had the tariffs been in force in 2025, the battery would have earned up to $300,000 a year through net metering and scheduled dispatch. The capacity and transmission credits start later, in the 2028/29 delivery year. At that year’s capacity price, it could earn up to another $685,000 a year by exporting through 90% of the coincident-peak hours.
Key takeaways
- Under CRGA, Illinois pays a rebate of $250 per kWh of nameplate capacity for standalone distributed BESS interconnected after June 1, 2026. Applications open January 1, 2027, and ComEd pays within 60 days of a complete application once the battery is operating.
- Net metering nets charging and discharging hourly at the full retail supply rate and bills or pays out the result monthly. Backtested on 2025 ComEd day-ahead prices, a 5 MW system can earn $250,000 a year on the energy line.
- The SDVPP pays $10 per kW-season for injections between 4pm and 6pm on summer weekdays. That is $50,000 per year at 5 MW, stacking on top of net metering credits for the same MWh.
- Exporting through PJM’s and ComEd’s coincident peaks turns the capacity and transmission charges into credits. From the 2028/29 delivery year, a 5 MW battery catching 90% of the peaks could earn up to $685,000 a year.
CRGA sets a $250/kWh rebate that covers most of a battery’s CapEx
The DG Rebate Rider, filed under CRGA, makes standalone BESS eligible for a distributed generation rebate. Eligibility requires interconnection to ComEd’s distribution system after June 1, 2026, charging solely from the grid, and a nameplate rating of 5 MW or less. The rebate pays $250 per kWh to batteries of 100 kW or more and $300 per kWh to batteries under 100 kW.
The rebate is capped at five hours of duration and 25 MWh, so the most any single battery can receive is $6.25 million. A 5 MW, 4-hour battery (20 MWh) collects $5 million.
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