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 automatically applied during property assessments, so homeowners typically don’t need to file separate applications. However, it’s important to inform your local assessor about your solar installation to ensure the exemption is properly applied to your property tax bill.

The Smart Inverter Rebate is a state-level incentive program offered by two major Illinois utilities – ComEd and Ameren Illinois – 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 electrical grid, helping maintain grid stability and reliability.

While the provided information confirms that both ComEd and Ameren offer this rebate program, specific dollar amounts and rebate values 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. Additionally, both utilities offer a separate rebate for customers who choose to install energy storage devices alongside their solar systems.

To take advantage of this incentive, you’ll need to be a customer of either ComEd or Ameren Illinois and install solar panels equipped with smart inverter technology. It’s important to note that this rebate works alongside other solar incentives available in Illinois, including federal tax credits and renewable energy credit programs. For specific rebate amounts, application procedures, and current availability, you should contact your utility company directly, as program details and funding can change over time.

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 solar systems generate over time. When you install solar panels through an approved vendor in the Illinois Shines program, your system produces these valuable credits that can significantly reduce your overall solar costs.

The program offers multiple ways to go solar, including purchasing your system outright, leasing panels, or entering a power purchase agreement. Approved vendors can pass Illinois Shines incentive payments directly to customers through reduced equipment costs, lower installation fees, or decreased monthly payments. 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 operates on a block system with limited capacity, so timing can be important for securing incentives. Illinois Shines also includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contracts, helping you make informed decisions about your solar investment.

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 clean 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 installations, homeowners only pay for half the value of the bill credits they receive from their solar system. Community solar participants 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 by the solar system.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities to participate. All solar projects receive payments for 15 years of Renewable Energy Credits, which helps offset system costs and enables the guaranteed savings for participants.

This program offers strong consumer protections to ensure participants see real economic benefits and are protected from unfair business practices. The initiative supports both individual rooftop installations and community solar subscriptions, making solar accessible whether you own or rent your home.

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 or other bill components.

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. It’s important to properly size your system to avoid forfeiting unused credits, as most utilities don’t provide cash compensation for excess credits at year-end.