Bloomington, 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 valuation for your home that prevents your property taxes from increasing due to the added value of your solar installation. When you file for this exemption, your county assessor will compare your home’s value with solar panels to what it would be worth with a conventional heating or cooling system, then apply whichever valuation is lower.

The financial benefit varies by property but can result in significant annual savings on your property tax bill. Since solar systems typically add substantial value to homes, this exemption protects you from paying higher property taxes on that increased value. To qualify, your solar energy system must be used primarily to offset your electricity consumption (estimated at 110% or less of your annual usage), conform to state standards, and be located on residential property. You’ll need to file a claim with your chief county assessment officer to receive this alternate valuation.

Keep in mind that you must notify the county within 30 days if your solar system stops being used for its intended purpose, as this would end your eligibility for the exemption. This incentive applies to various types of solar installations, including those under power purchase agreements or leases, as long as they meet the residential use requirements.

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 electrical 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, the 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 between the two utilities and may 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 Certificate (REC) payments. The program works by having approved solar vendors receive incentive payments from utilities for the clean energy certificates your solar system generates, 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 generated. All participating solar companies must provide standardized disclosure forms that clearly show project costs, expected savings, and how much of the REC incentive benefit you’ll receive. The program includes strong consumer protections, requires vendors to meet specific qualifications, and offers 15- or 20-year REC contracts depending on your project type.

To participate, you must work with an Illinois Shines approved vendor or designee, and your solar system must meet program requirements for size and installation standards. The program operates on a block system with limited capacity, so timing can be important for securing incentives. Homeowners should get multiple bids, check vendor references, and carefully review disclosure forms to understand all costs and benefits before making a decision.

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 help Illinois reach its renewable energy goals while ensuring that low-income communities can benefit from solar energy savings. Participants can choose between installing solar panels on their property or subscribing to a community solar project.

The financial benefits are significant: participants pay no upfront costs 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 subscribers receive electricity credits on their bills based on their share of the solar project’s energy production. The program ensures that ongoing costs 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. Nonprofits and public facilities must serve low-income or environmental justice communities. All participants must work through approved solar developers who handle the application process and receive payments for 15 years of renewable energy credits to help offset system costs.

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 net metering at rates between 6.8-8.3 cents per kWh depending on your utility (ComEd, Ameren, or MidAmerican Energy). Your excess credits roll over month to month but expire annually in April or October with no compensation. Starting January 1, 2025, the program changes significantly – new systems will only receive credits for the supply and transmission portions of electricity rates (called Price to Compare rates), which are lower than full retail rates. These credits can only offset specific charges on your bill, not delivery charges, customer fees, or taxes.

The timing of your system’s PTO date is crucial for maximizing your savings. Systems installed before 2025 maintain better credit values but lose unused credits annually, while newer systems receive lower credit rates but can roll credits over indefinitely. It’s important to properly size your solar system to avoid generating excess credits that expire without compensation, as oversized systems can actually reduce your overall savings potential.