Illinois Signs Clean Energy Act to Drive Solar Storage and VPP Investment

PVTIME – Illinois Governor JB Pritzker has signed the Clean, Reliable and Affordable Grid Act (CRAG, SB 25), which is designed to boost investment in solar photovoltaics, battery energy storage, and virtual power plant initiatives across the state. The new act builds on existing supportive renewable energy laws, most notably the 2021 Climate and Equitable Jobs Act (CEJA), which sets a target of achieving 100% clean energy in Illinois by 2050. Since CEJA came into force, the state has supported the deployment of over 6GW of renewable energy capacity, with a further 6GW currently in development.

The CRGA aims to address rising electricity prices driven by private grid operators, expand cost-effective energy resources, and advance Illinois’ clean energy economy. The legislation will take effect on 1 June 2026. Key measures to reduce energy costs include setting a statewide procurement target of 3GW of grid-scale battery energy storage to be achieved by 2030. The legislation also requires utility companies to develop Virtual Power Plant (VPP) projects, allowing households with solar panels, battery storage, and electric vehicles to participate, and establishes an Integrated Resource Planning (IRP) process. This process is focused on identifying cost-efficient ways to keep energy bills low, while adjusting state-level projects as needed. The measures also include requirements for utilities to promote energy equity for low-income households.

Furthermore, the CRGA is committed to growing Illinois’ clean energy economy, creating new jobs, and accelerating the rollout of new energy projects across the state. This will be achieved by unlocking new clean energy opportunities, such as instructing the Illinois Power Agency (IPA) to introduce long-term procurement agreements. The Act also enacts a Solar Bill of Rights, ensuring that residents served by municipal and cooperative utilities can install rooftop solar panels, and implements reforms to streamline the siting of clean energy projects.

The Illinois General Assembly passed the CRGA in October last year, before sending it to Governor Pritzker for signature. The storage procurement target requires resources to be deployed or contracted by 31 December 2030, and directs the state government to oversee the efforts of utilities to acquire storage. According to Energy Storage News, the bill, which includes clear energy storage targets, was warmly welcomed by consumer advocacy groups, environmental organisations, and clean energy industry bodies when it was passed by the state legislature.

The legislation will also support community solar development in Illinois by raising the maximum capacity of such projects to 10MW. According to data from the Local Self Governance Institute, Illinois first introduced community solar legislation in 2016, and, by the third quarter of 2025, the state had added 444MW of installed community solar capacity. This places Illinois fifth among US states for community solar development.

Governor JB Pritzker commented that the Clean, Reliable and Affordable Grid Act sets a national benchmark for lowering energy costs and marks a historic step forward for the state’s clean energy vision, adding that Illinois is once again stepping up where the federal government has failed to act.

Data from the SEIA shows that Illinois is projected to experience some of the highest growth among US states in the coming years. SEIA forecasts that the state will add 14.6GW of new solar photovoltaic capacity over the next five years, placing it fourth nationwide. This would more than double the state’s current installed solar capacity, which stood at 6.5GW at the end of Q3 2025.