Illinois Senate Bill SB1277

Illinois 2025-2026 Regular Session

• Introduced: 1/28/25
• Refer: 1/28/25

Caption

POWER AG-SOLAR SURETY BONDS

Impact

With the implementation of SB1277, companies involved in solar energy installation will face a new layer of regulatory compliance. The Illinois Power Agency is tasked with setting the specifics of the surety bond requirements and will adjust the bond amount annually. The establishment of the Solar Installation Fund is also crucial as it will allocate funds collected from forfeited bonds to ensure that companies honor their financial obligations to customers, creating a safety net for consumers in case of company insolvency or failure to deliver on warranty obligations.

Summary

SB1277, introduced in the Illinois General Assembly, aims to amend the Illinois Power Agency Act by introducing mandatory surety bonds for companies that provide solar project installation services. Specifically, any company wishing to install solar projects or facilities in Illinois must post and maintain a surety bond of at least $2,000,000 with the Illinois Power Agency. This provision is intended to ensure that companies meet their warranty obligations and rebate payments to customers, thereby protecting consumer interests in the growing solar energy sector.

Contention

While the bill aims to bolster consumer protection in the solar installation sector, there are potential points of contention. Some stakeholders may argue that the high bond requirements could serve as a barrier to entry for smaller solar companies, thus limiting competition within the market. On the other hand, supporters might contend that such regulations are necessary to foster trust in the industry and provide greater assurances to consumers, ultimately promoting the growth of renewable energy in the state.