Chicago, IL

Illinois offers a valuable Property Tax Exemption for solar energy systems that can significantly reduce your property tax burden. When you install a solar energy system on your home, the law ensures that your property taxes won’t increase as a result of that improvement. 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 benefit the property where it’s installed, and it must conform to standards established by the Illinois Department of Commerce and Economic Opportunity. If you install a system, you’ll need to file a claim with your county’s chief assessment officer to receive the alternate valuation. Remember that if you stop using your solar system, you must notify the assessment officer within 30 days by certified mail. This exemption provides a straightforward way to invest in clean energy without worrying about increased property taxes.

The Smart Inverter Rebate is a financial incentive offered by ComEd and Ameren Illinois to customers who install solar panels with smart inverters. A smart inverter allows the utility company to manage the flow of electricity from your solar system to the grid, helping to maintain grid stability and reliability. This rebate is part of Illinois’ efforts to encourage renewable energy adoption throughout the state.

Eligible homeowners can receive a rebate for installing solar panels with smart inverters, and an additional rebate is available for those who install energy storage devices like batteries. The exact rebate amount varies by utility provider. To qualify, you must be a customer of either ComEd or Ameren Illinois – customers of municipal utilities or rural electric cooperatives are not eligible for this particular incentive. There are no mentioned deadlines for this ongoing program, but it’s always wise to check with your utility provider for the most current information about availability and application procedures.

Illinois Shines is a state program that provides financial incentives for solar energy projects 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 a significant financial incentive that helps reduce the overall cost of going solar.

The program supports various financing options including system purchase, lease, or power purchase agreements (PPAs). Illinois Shines requires participating vendors to provide standardized Disclosure Forms that clearly outline costs, savings estimates, and contract terms before you sign any agreement. This transparency helps you compare offers and understand exactly what you’re getting. The program offers 15 or 20-year REC contracts, and the incentive amount varies based on system size and location. To participate, you must work with an Illinois Shines Approved Vendor who will handle the application process and pass the incentive benefits to you through reduced installation costs or lower monthly payments.

Illinois Solar for All (ILSFA) is a state program designed to make solar energy accessible to income-eligible households, nonprofits, 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 participants will save money on their electric bills, as they only pay for up to 50% of the value of the energy produced by their solar system.

To qualify, homeowners and renters must meet income eligibility requirements and work with approved solar developers registered with the program. Nonprofits and public facilities 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 the cost of the solar installation. ILSFA also aims to stimulate economic development through job creation in historically underserved communities across Illinois.

Illinois offers a Net Billing program that allows solar homeowners to receive credit for excess electricity their systems send back to the grid. This program is changing significantly based on when your system receives permission to operate (PTO).

For systems with PTO by December 31, 2024, full retail net metering applies, meaning excess energy credits are carried over monthly at the retail rate. However, for systems receiving PTO on or after January 1, 2025, the program switches to a less valuable credit system where exports are credited only at the Price To Compare (PTC) rate—approximately 6.8 cents/kWh for ComEd and 8.3 cents/kWh for Ameren customers. These credits can only offset supply and transmission charges, not delivery charges or other fees.

Important considerations: For systems approved before 2025, unused credits expire annually in April or October without compensation. After January 1, 2025, credits will roll over indefinitely but can only be applied to PTC charges. Homeowners should avoid dramatically oversizing their systems, as excess credits that expire can reduce your overall savings potential.