Illinois

Illinois offers a valuable Property Tax Exemption for solar energy systems that helps homeowners save money when they go solar. This incentive ensures that adding solar panels to your home won’t increase your property taxes, even though solar typically adds value to your property. When you install a solar energy system, the county assessor will determine two values for your property: one with a conventional heating/cooling system and one with the solar system. You’ll be taxed on the lower of these two values as long as your solar system remains in use.

To qualify for this exemption, your solar system must be used primarily to offset electricity consumed on your property (producing no more than 110% of your previous 12-month electricity usage). The system must also conform to standards established by the Illinois Department of Commerce and Economic Opportunity. If you stop using your solar system, you must notify the chief county assessment officer within 30 days by certified mail. This exemption has no expiration date, but remember that selling your property or changing how you use your solar system may affect your eligibility.

The Distributed Generation Rebate (Smart Inverter) is a financial incentive offered by Illinois utilities ComEd and Ameren to homeowners who install solar panel systems. This rebate compensates you for installing a smart inverter, which is a device that helps utilities manage the flow of electricity from your solar panels to the grid. Smart inverters are essential components of modern solar installations that enhance grid stability and reliability.

ComEd and Ameren customers who install solar panels qualify for this rebate, which is provided in addition to other solar incentives like net metering and renewable energy credits. Unfortunately, customers of municipal utilities or rural electric cooperatives are not eligible for this program. The rebate is automatically applied when your solar system is interconnected with the utility grid, making it a straightforward benefit with no separate application process. For specific rebate amounts and any program updates, it’s recommended to check directly with ComEd or Ameren, as rebate values may change over time.

Illinois Shines is a state program that provides financial incentives for solar energy systems through Renewable Energy Credits (RECs). When you install solar panels on your property, your system generates RECs that have monetary value. Through Illinois Shines, these RECs are purchased by utilities, creating an incentive that can significantly reduce your solar installation costs.

The program works through Approved Vendors who receive the REC payments directly from utilities and then pass these savings on to homeowners through reduced equipment costs, lower installation fees, or decreased monthly payments (depending on your financing arrangement). Illinois Shines supports various project types including rooftop and ground-mounted systems, and offers 15 or 20-year REC contracts. Homeowners should compare multiple vendors, review the required Disclosure Forms carefully, and consider how long they plan to stay in their home before committing to a solar installation through this program.

Illinois Solar for All (ILSFA) is a state program designed to make solar energy accessible to income-eligible households, nonprofit organizations, and public facilities. Participants can install solar panels on their property or subscribe to community solar projects with no upfront costs. The program guarantees that ongoing costs will never exceed 50% of the value of the energy produced, ensuring significant savings on electricity bills.

To qualify, homeowners and renters must meet income eligibility requirements and work with approved solar developers registered with the program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities. The program provides payments to solar developers in exchange for 15 years of Renewable Energy Credits, which helps offset installation costs. ILSFA also promotes economic development through job creation in historically underserved communities throughout Illinois.

Illinois offers a Net Billing program that allows solar homeowners to receive credit for excess electricity they send back to the grid. For systems receiving Permission to Operate (PTO) by December 31, 2024, full retail net metering applies, meaning excess energy is credited at the retail rate and can be carried over month to month. This provides maximum financial benefit as credits can offset your entire electric bill.

Starting January 1, 2025, the program transitions to a reduced-value net billing system. Under this new structure, exported electricity will only be credited at the Price To Compare (PTC) rate, which is lower than the retail rate. For context, ComEd’s average PTC was 6.8 cents/kWh in 2024, Ameren’s was 8.3 cents/kWh, and MidAmerican’s varies seasonally (6.7 cents summer, 3.7 cents winter). These credits can only offset supply and transmission charges, not delivery charges, customer charges, or taxes.

Important considerations: For systems with PTO before 2025, unused credits expire annually in April or October without compensation. After January 1, 2025, credits will roll over indefinitely until they can be applied to PTC charges. If you’re considering solar in Illinois, installing before the end of 2024 will secure you the more valuable full retail net metering benefits. Oversizing your system may result in forfeited credits under the pre-2025 rules, potentially reducing your overall savings.