Aurora, IL

Illinois offers a property tax exemption for homeowners who install solar energy systems on their residential property. This incentive allows you to claim an alternate property tax valuation that can significantly reduce your annual property tax bill. When you install solar panels, your home’s assessed value for tax purposes will be calculated as the lesser of two amounts: your home’s value with the solar system, or your home’s value as if it had a conventional heating/cooling system instead.

The financial benefit varies based on your specific situation, but this exemption can save you hundreds or thousands of dollars annually in property taxes. To qualify, your solar system must be used primarily to offset your home’s electricity consumption (producing no more than 110% of your annual usage) and must conform to state standards. You’ll need to file a claim with your county’s chief assessment officer to receive this alternate valuation. The exemption continues as long as your solar system remains in use, but you must notify the county within 30 days if you stop using the system for solar energy production.

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. To learn the exact rebate amount and application process, you’ll need to contact your utility company directly or work with an approved solar installer who can help you navigate the rebate application process and ensure your system meets the smart inverter requirements.

Illinois Shines is a state-run solar incentive program that helps Illinois homeowners and businesses reduce the cost of installing solar panels. The program works by purchasing Renewable Energy Credits (RECs) from solar system owners over a 15- or 20-year period, providing ongoing financial benefits that solar installers typically pass on to customers through reduced equipment costs, lower installation prices, or decreased lease payments.

The program operates through approved solar vendors who handle the application process and REC contracts on behalf of customers. While specific dollar amounts vary by project size and current program rates, the financial benefits are structured to make solar more affordable upfront rather than providing direct cash payments to homeowners. Customers can choose from three main financing options: purchasing the system outright (with or without a loan), leasing the equipment, or entering a power purchase agreement where they pay for the electricity the panels produce.

To participate, homeowners must work with an Illinois Shines-approved vendor and receive a required Disclosure Form before signing any contracts. The program has capacity limits that are filled on a first-come, first-served basis, so timing can be important. Illinois Shines includes strong consumer protections, including vendor vetting, standardized disclosure requirements, and complaint resolution services. The program particularly encourages projects by Equity Eligible Contractors to promote solar access in underserved communities.

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 traditionally haven’t had access to clean energy options. Income-eligible homeowners and renters can participate through rooftop solar installations or community solar subscriptions, while nonprofits and public facilities in environmental justice or low-income 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. The program ensures that ongoing costs and fees never exceed 50% of the energy value produced, providing strong consumer protection.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. The program operates through 15-year contracts where developers receive payments for Renewable Energy Credits (RECs), which helps offset system costs for participants. This structure allows the program to provide solar access without requiring participants to navigate complex financing or make large upfront investments.

Illinois’ Net Billing program allows homeowners with solar panels to receive credits for excess electricity they send back to the 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 rate credits that can offset your entire electric bill. 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 – averaging 6.8 cents per kWh with ComEd, 8.3 cents 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 or other bill components.

The rollover rules also differ by timing and utility. Systems installed before 2025 typically see excess credits expire annually in April or October with no compensation. For post-2025 systems, unused credits roll over indefinitely but can only be applied to eligible charges. This timing difference makes the December 31, 2024 deadline crucial for maximizing your solar investment’s financial benefits.