Solar and green energy have become increasingly important in real estate law in Illinois, as property owners and developers seek to reduce their environmental impact and take advantage of renewable energy benefits. Navigating the complex legal landscape, including zoning regulations, building codes, tax incentives, and contractual agreements, is essential for anyone involved in real estate transactions or development projects incorporating solar or green energy systems in Illinois.
Definition and Requirements
Solar and green energy systems generate electricity or heat from renewable sources, such as solar, wind, geothermal, or biomass. In real estate, the most common types are:
1. Solar Photovoltaic (PV) Systems
2. Solar Thermal Systems
3. Wind Energy Systems
4. Geothermal Systems
To incorporate solar or green energy in real estate, property owners and developers must meet various legal requirements:
1. Zoning and Building Codes: Comply with local zoning ordinances and building codes regulating the size, location, and design of solar and green energy systems.
2. Homeowners' Associations (HOAs): Adhere to HOA restrictions on solar or green energy installations, subject to the Illinois Homeowners' Energy Policy Statement Act (765 ILCS 165/).
3. Interconnection and Net Metering: Follow utility company interconnection requirements and Illinois' net metering regulations (220 ILCS 5/16-107.5) when connecting to the grid.
4. Incentives and Financing: Utilize available incentives, such as the Solar Renewable Energy Credit (SREC) program, property tax exemptions, rebates, and financing options like Property Assessed Clean Energy (PACE) programs.
5. Contracts and Leases: Carefully review and negotiate contracts or leases with third-party developers or investors to protect the property owner's interests and ensure compliance with applicable laws.
Typical Legal Process
1. Due Diligence: Consult with attorneys and professionals to assess the feasibility and legal requirements of installing solar or green energy systems on the property.
2. Zoning and Permitting: Navigate local zoning and building code requirements, prepare permit applications, and represent clients in hearings or appeals if necessary.
3. HOA Restrictions: Review HOA governing documents and advise on the legality of proposed solar or green energy installations.
4. Interconnection and Net Metering: Understand and comply with utility company interconnection requirements and state net metering regulations.
5. Incentives and Financing: Advise on available incentives and financing options, and assist in preparing applications and documentation.
6. Contracts and Leases: Draft, review, and negotiate contracts or leases with third-party developers or investors to protect the client's interests and ensure legal compliance.
7. Dispute Resolution: Represent clients in negotiations, mediation, arbitration, or litigation to resolve disputes with HOAs, utility companies, or other parties.
Throughout the process, attorneys specializing in real estate law and renewable energy provide guidance and advocacy to help clients navigate the legal complexities of incorporating solar and green energy systems into their real estate projects in Illinois.
