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 the solar equipment itself and any increase in your home’s assessed value due to the solar installation.

The financial benefit varies based on your home’s location and local tax rates, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 to your home’s value and your local property tax rate is 2%, you would save $400 per year in property taxes. The exemption continues for as long as you own the solar system, providing ongoing savings throughout the life of your investment.

To qualify, your solar energy system must be used primarily for on-site consumption of electricity for residential purposes. The system must be properly installed and meet local building codes and safety requirements. There are no income restrictions or application deadlines – the exemption automatically applies once your solar system is assessed by your local tax assessor.

It’s important to note that while your solar system won’t increase your property tax bill, it will still add value to your home if you decide to sell. This means you get the best of both worlds: no additional property taxes while you live there, but increased home value when it’s time to move.

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 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 in the program may pass REC incentive savings 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 includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contracts, so you can clearly compare different offers and financing options.

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 entities 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. 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 provides payments to solar developers for 15 years of renewable energy credits, which helps offset system costs. While no specific deadlines are mentioned in the program details, interested participants should contact registered solar contractors to begin the application process and secure their spot in this popular program.

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 solar energy is credited at the same rate you pay for electricity. However, starting January 1, 2025, new solar installations will receive reduced credits through a net billing structure. Under this new system, excess energy is only credited at the “Price to Compare” rate, which covers supply and transmission costs but excludes delivery charges. For example, ComEd’s average rate in 2024 was 6.8 cents per kWh, while Ameren’s was 8.3 cents per kWh – significantly lower than full retail rates.

The December 31, 2024 deadline is critical for maximizing your solar savings. Systems installed before this date can carry over excess credits month-to-month, though unused credits typically expire annually in April or October with no compensation. After January 1, 2025, credits can only offset supply and transmission charges on your bill, not delivery fees, customer charges, or taxes. Credits under the new system will roll over indefinitely until used, but their reduced value means longer payback periods for your solar investment.