Illinois

Illinois offers a property tax exemption for residential solar energy systems, which means homeowners don’t have to pay additional property taxes on the increased value that solar panels add to their home. When you install solar panels, they typically increase your home’s assessed value, but this exemption protects you from paying higher property taxes on that added value.

The exemption applies to the full assessed value increase from your solar installation, potentially saving you hundreds of dollars annually depending on your local tax rates and system size. To qualify, your solar system must be used primarily for residential purposes and installed on your primary residence. The exemption continues for as long as you own the solar system, with no time limit or expiration date. This makes solar more affordable by ensuring that the investment in clean energy won’t result in higher ongoing property tax bills.

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

While the provided information confirms that both 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 rebate 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 incentive.

It’s important to note that this rebate works alongside other solar incentives like federal tax credits and renewable energy credit programs. Since rebate amounts and application processes can vary between the two utilities, homeowners should contact their specific utility company directly to learn about current rebate levels, eligibility requirements, and application procedures for the Smart Inverter Rebate program.

Illinois Shines is a state-run solar incentive program that helps make solar energy more affordable for Illinois homeowners and businesses. The program works by providing financial incentives through Renewable Energy Credits (RECs) that are generated by your solar system. When you install solar panels through an approved vendor in the Illinois Shines program, your system generates these valuable credits over a 15- or 20-year period, which can significantly reduce your overall solar costs.

The financial benefit comes in the form of reduced installation costs, lower lease payments, or decreased power purchase agreement rates, depending on how you choose to finance your solar system. Illinois Shines uses an ‘Approved Vendor’ model, meaning the solar companies receive the REC incentive payments directly from utilities and can pass those savings on to you as the customer. The exact dollar amount of savings varies based on your system size, location, and the specific vendor you choose, so it’s important to review the required Disclosure Form that breaks down all costs and incentives for your specific project.

To participate, you must work with an Illinois Shines Approved Vendor or Designee, and your system must meet specific program requirements. The program operates on a block system with limited capacity, so there may be waiting periods or program closures when funding is fully allocated. Homeowners should carefully compare multiple bids, understand their financing options (purchase, lease, or power purchase agreement), and consider factors like roof condition, property ownership timeline, and whether a rooftop or ground-mounted system works best for their situation.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofits, and public facilities. The program was created to bring solar benefits to communities that have traditionally been left out of the clean energy transition. Income-eligible homeowners and renters can participate through rooftop solar installations or community solar subscriptions, while nonprofits and public facilities in environmental justice communities can install on-site solar systems.

The financial benefits are significant: participants pay no upfront costs and are guaranteed savings on their electric bills. For rooftop solar, homeowners only pay 50% of the value of the bill credits they receive from their solar system. Community solar subscribers receive electricity credits on their bills based on their share of a solar project’s production. To be eligible, participants must meet income requirements and work with solar contractors registered with the program. The program provides 15 years of payments to contractors through Renewable Energy Credit sales, which helps offset system costs and ensures consumer savings are protected throughout the contract period.

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 benefit from full retail net metering, meaning excess energy is credited at the same rate you pay for electricity. However, starting January 1, 2025, the program changes significantly. New systems will only receive credits at the “Price to Compare” rate, which is much lower than retail rates. For example, ComEd’s average rate in 2024 was 6.8 cents per kWh, while Ameren’s was 8.3 cents per kWh. These credits can only offset supply and transmission charges on your bill, not delivery charges, customer fees, 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 terms. Credit rollover policies also vary by utility and installation date. For pre-2025 systems, excess credits typically expire annually in April or October with no compensation. Post-2025 systems will have credits that roll over indefinitely but can only be applied to specific bill components. It’s important to properly size your system to avoid generating excess credits that may expire without value.