Illinois Enacts Legislation to Lower Utility Bills, Expand Battery Storage, Lift Nuclear Moratorium

Illinois Governor JB Pritzker on Jan. 8 signed the Clean and Reliable Grid Affordability Act, creating a new package of affordability and resource measures aimed at lowering electricity bills for working families while strengthening the state’s long-term energy supply. The legislation builds on the Future Energy Jobs Act and the Climate and Equitable Jobs Act and targets recent bill increases driven in part by capacity-related costs shaped by private grid operators.

The new law expands Illinois’ ability to manage costs by growing supply, improving demand flexibility, and strengthening consumer-focused programs. A core provision authorizes a state procurement of 3 gigawatts of grid-scale battery storage by 2030 to support reliability and reduce peak-period cost pressures. The measure also lifts the state’s moratorium on new large nuclear reactors, opening a pathway for additional carbon-free capacity.

To deliver direct bill savings, the legislation requires utilities to establish Virtual Power Plant programs that pay participating households and businesses for using smart thermostats, rooftop solar, small batteries, and electric vehicles to support grid needs. The law also expands energy efficiency programs for residential and commercial customers, linking bill relief to lower energy use.

The legislation increases equity requirements by setting minimum low-income spending thresholds for utility-run efficiency programs and removes formula-based utility earnings tied to program administration. It also requires utilities to offer time-of-use pricing so customers can reduce bills by shifting electricity use outside peak hours.

On planning and governance, the act establishes an integrated resource planning process to evaluate cost-effective approaches to keep bills down and adjust state programs as conditions change.

The law directs the Illinois Power Agency to pursue new long-term clean energy procurements, ties the Renewable Portfolio Standard budget cap to inflation, expands community solar project size limits to 10 megawatts, and establishes a Solar Bill of Rights for customers served by municipal and cooperative utilities. The IPA estimates savings of $13.4 billion over 20 years. The law takes effect on June 1, 2026.