Solar Guide

Illinois offers a property tax exemption for solar energy systems, which means homeowners who install solar panels don’t have to pay property taxes on the added value that their solar system brings to their home. This exemption applies to both residential and commercial solar installations, helping reduce the overall cost of going solar by eliminating ongoing property tax increases.

The exemption covers the full assessed value of your solar energy system, which can result in significant annual savings depending on your local property tax rates and the size of your solar installation. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 2%, you would save approximately $400 per year in property taxes. The exemption continues for as long as you own the solar system, providing ongoing financial benefits throughout the life of your investment.

To qualify, your solar energy system must be used primarily for on-site consumption of electricity, though systems that generate excess power for the grid may still be eligible. The exemption is automatic once your solar system is installed and assessed, so you don’t need to file special paperwork or meet annual deadlines. However, you should verify with your local assessor that the exemption has been properly applied to ensure you’re receiving the full benefit.

The Smart Inverter Rebate is a state-level incentive program offered by Illinois utilities ComEd and Ameren to encourage homeowners to install solar panels with smart inverter technology. A smart inverter is a device that allows the utility company to better manage the flow of electricity from your solar system to the electrical grid, helping maintain grid stability and reliability.

While the provided documentation mentions that ComEd and Ameren offer this rebate for installing solar panels with smart inverters, specific dollar amounts and rebate percentages are not detailed in the source material. The program is only available to customers of ComEd and Ameren Illinois – homeowners served by municipal utilities or rural electric cooperatives are not eligible for this particular rebate. To learn the exact financial benefit and application requirements, you’ll need to contact your utility company directly, as rebate amounts and terms can vary and change over time.

Illinois Shines is a state-run solar incentive program that helps homeowners and businesses reduce the cost of installing solar panels through Renewable Energy Credit (REC) payments. The program works by having approved solar vendors receive incentive payments from utilities for the clean energy your solar system produces, and these vendors can pass those savings on to you through reduced equipment costs, lower installation prices, or discounted lease payments.

The program offers multiple ways to go solar, including purchasing your system outright (with cash or loans), leasing panels with monthly payments, or entering power purchase agreements where you pay for the electricity your panels generate. All contracts run for 15 or 20 years for the REC portion. To participate, you must work with an Illinois Shines approved vendor who will handle the application process and ensure your system meets program requirements. The program includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contract, and offers support if issues arise with your solar provider.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofits, and public facilities throughout Illinois. The program was created under the Future Energy Jobs Act and is designed to bring solar benefits to communities that have historically been underserved by renewable energy programs.

The financial benefits are significant: participants pay no upfront costs for solar installations and are guaranteed savings on their electric bills. For rooftop solar systems, homeowners only pay for half the value of the bill credits they receive from their solar panels. Community solar subscribers receive electricity credits on their bills based on their share of a solar project’s production. All ongoing costs and fees are capped at 50% of the energy value produced, ensuring meaningful savings for participants.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. Nonprofits and public facilities must serve low-income or environmental justice communities to qualify. The program operates through 15-year contracts where developers receive payments for Renewable Energy Credits (RECs), which helps offset system costs for participants.

Homeowners should know that this program specifically focuses on consumer protection, ensuring participants see real economic benefits while being protected from misleading business practices. The program supports both rooftop installations and community solar subscriptions, giving participants flexibility in how they access solar energy benefits.

Illinois’ Net Billing program allows homeowners with solar panels to receive credits for excess electricity they send back to the power grid. The value of these credits and how they can be used depends on when your solar system receives Permission to Operate (PTO) and which utility company serves your area.

For systems that receive PTO by December 31, 2024, you’ll receive full retail rate credits (typically 10-15 cents per kWh) that can offset your entire electric bill. However, starting January 1, 2025, the program changes significantly. New solar systems will only receive credits at the Price to Compare (PTC) rate, which is much lower – averaging 6.8 cents/kWh with ComEd, 8.3 cents/kWh with Ameren, and varying seasonally with MidAmerican Energy (6.7 cents summer, 3.7 cents winter). These reduced-rate credits can only offset supply and transmission charges, not delivery fees, customer charges, or taxes.

The December 31, 2024 deadline is critical for maximizing your solar savings. Systems installed before this date maintain grandfathered status with better credit rates and broader bill offset capabilities. Credit rollover policies also vary by utility – some expire annually while others roll over indefinitely. Homeowners should avoid oversizing their systems to prevent forfeiting unused credits and should work with their installer to ensure PTO is completed before the 2025 changes take effect.