Chicago, IL Solar Panels
In This Guide
Solar Power in Chicago
Considering solar panel installation in Chicago? Roof shade, roof condition, and winter weather can all affect a system’s design and energy production. Knowing what to evaluate can help you understand whether your home is a good fit.
Learn how panels work and what to consider before installation in our guide to home solar panels.
How Much Do Solar Panels Cost in Chicago, IL?
Explore estimated solar installation costs in Chicago using Palmetto’s real installation data from across the area, including Evanston, Oak Park, Naperville, and Schaumburg. This local calculator offers a clearer starting point for understanding what a solar system may cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Chicago solar output changes with the seasons—roof shade, winter weather, and system design all affect how much electricity panels produce.
- A typical 9.84 kW system is estimated at $28,095, with projected 25-year savings near $59,765; actual results depend on your home and utility costs.
- Illinois and ComEd offer programs that may lower solar costs, but eligibility, contract terms, and effects on utility credits vary.
Chicago Electricity Prices
Electricity prices shape the long-term cost of powering a Chicago home.
Illinois’s average residential rate rose from 13.2¢ per kWh in 2021 to 15.9¢ in 2024. It held at 15.7¢ in 2022 and 2023. The 2024 U.S. average was 16.5¢.
For Chicago homeowners, solar installation can generate electricity at home and may reduce how much power they buy from the grid. Actual results depend on system output, household use, and utility rules.
Over time, solar can help limit exposure to changing electricity rates. Its long-term value depends on installation costs, energy production, and how much grid electricity a household still needs.
Price of Energy: Illinois vs National Average
Chicago Area Utility Providers
In Chicago, ComEd is the utility shown in the available electricity-price data. For 2023, its average rate was 14.8¢ per kilowatt-hour; 2024 utility data is not yet available.
ComEd’s 2023 rate was below the Illinois average of 15.7¢/kWh and the national average of 16.0¢/kWh. These figures show the comparison, but do not identify what caused the differences.
Electricity prices help put solar in context: a home system may let a household generate some of its own electricity and buy less from the utility. The amount depends on the system and the home’s energy use.
Chicago Utilities Electricity Rates
Illinois Solar Incentives
Chicago residents may qualify for state and utility programs that offset solar costs. See solar incentives in Illinois; eligibility and rules vary.
Illinois Shines offers REC-contract value for qualifying rooftop or community solar; Illinois Solar for All supports eligible households, nonprofits, and public facilities with reduced or no upfront costs and bill-savings protections.
ComEd and Ameren offer solar and battery rebates; Illinois provides alternate property-tax valuation, not an automatic exemption. LightReach leasing lets Palmetto handle commercial ITC, passing savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Illinois Shines (Adjustable Block Program) | Solar renewable energy credit (REC) incentive | Qualifying Illinois rooftop-solar and community-solar projects can earn REC-contract value, which may reduce a customer’s project cost or be passed through according to the customer’s contract. | Learn More |
| Illinois Solar for All (ILSFA) | Income-qualified solar incentive | Eligible households and certain nonprofits and public facilities can access qualifying solar or community solar with reduced or no upfront costs and required bill-savings protections. | Learn More |
| ComEd Distributed Generation Rebate | Utility solar rebate | Eligible ComEd residential and small-load customers may receive a rebate of $300 per kW for qualifying customer-owned renewable generation equipment. | Learn More |
| ComEd Residential Battery Storage Rebate | Utility battery storage rebate | Eligible ComEd residential customers may receive $300 per kWh of qualifying battery storage capacity, subject to utility program and tariff requirements. | Learn More |
| Illinois Solar Energy System Property-Tax Valuation | Property-tax valuation provision | Eligible Illinois solar-energy-system improvements may use an alternate property-tax valuation process, which can limit how the system’s value is reflected in an assessment but is not an automatic tax exemption. | Learn More |
Illinois Shines supports qualifying on-site solar and community-solar projects by contracting for the renewable energy credits (RECs) the systems are expected to produce. For 2026–27, the published REC prices for small distributed-generation projects up to 10 kW AC are $70.37 per REC in Group A and $80.77 per REC in Group B; eligible customer-owned small systems that do not receive a federal clean-energy credit may qualify for an additional $20 per REC. A REC represents 1 MWh of generation, so the total value depends on estimated production, location, project category, and program rules—not simply system size.
The REC payment is made to the Approved Vendor, not automatically as a household rebate. The customer’s purchase, lease, or power-purchase agreement determines whether and how much value reaches the customer; review the Illinois Shines disclosure and contract before signing. Capacity and waitlist status can change, and qualifying small-system contracts approved on or after June 1, 2026 pay 50% at energization with the remainder paid over the following six years.
Illinois Solar for All uses REC contracts with approved project vendors to make solar more affordable for eligible participants. For qualifying residential rooftop projects, the program is structured to offer no upfront cost for many 1–4-unit homes, while other eligible properties may receive low- or no-upfront-cost offers; community-solar subscriptions are also available. The customer benefit is the project pricing and required savings protections, not a standard cash payment to every household.
Residential and community-solar household eligibility is generally based on gross income at or below 80% of Area Median Income, adjusted for household size and location. Program requirements, including savings, maintenance, and warranty protections, apply, and funding and application windows are limited. Confirm current eligibility and availability through the program before relying on an offer.
ComEd’s published rebate materials list a $300-per-kW rebate for qualifying residential and small-load customer-owned renewable generation. The rebate can lower the net upfront cost of an eligible solar installation, but the amount is based on qualifying system capacity and program rules; it is not a universal payment for every solar system.
Equipment, smart-inverter, interconnection, customer-class, and tariff requirements apply. If you are on legacy full-retail net metering, taking a generation rebate may affect your delivery-service credits or legacy billing status under the applicable utility rules. Confirm the current rebate terms and the effect on your specific net-metering arrangement with ComEd in writing before applying.
ComEd’s published program materials list a storage rebate of $300 per kWh for eligible residential and small-load customers. The rebate can reduce the cost of a qualifying battery, with the payment determined by eligible storage capacity and the program’s terms. ComEd’s materials specify hourly supply service (BESH) for the residential storage rebate.
Eligible equipment, smart-inverter, customer-class, and tariff requirements apply; verify whether the battery must be paired with or charged by an on-site renewable generator under the current terms. Storage receiving a rebate on or after June 1, 2026 may also be subject to scheduled-dispatch requirements, with ComEd’s filed rider indicating service may begin no later than March 1, 2027. Confirm the obligation and any compensation with ComEd before applying.
Illinois law provides an alternate valuation process for eligible solar-energy-system improvements. A property owner may file a claim with the county chief assessment officer; depending on the system, property, and applicable assessment rules, the process can affect the assessed value used to calculate property taxes and may reduce the tax impact compared with ordinary valuation.
This is not a blanket exemption from property taxes and does not guarantee a particular dollar savings. Eligibility and the valuation calculation depend on the property and system, and the owner must follow the applicable filing process. Contact the county assessor and review the Illinois Department of Revenue guidance to determine whether your installation qualifies.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Illinois incentives.
Get a Free QuoteChicago Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Chicago’s seasonal daylight swings, winter clouds, and occasional snow can shape monthly solar output, but well-designed systems can still produce useful energy year-round—even in cloudy cities.
Solar Production in Chicago by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Chicago
We’ve organized solar installations across the United States and are excited to share this interactive map of Chicago. Explore the hexagons to see how many homes have gone solar in each area and discover neighborhoods and communities where your neighbors are making the switch.
How to Choose a Solar Installer in Chicago
Verify the license
Illinois does not have a general state contractor license. For covered distributed-generation installation work, Illinois Commerce Commission (ICC) certification is required—generally for completing the electrical wiring and connections needed to interconnect a system with the utility distribution system. Planning or project management alone is not covered, so ask each bidder which company and crew will perform the electrical work, and confirm the requirement for that scope on the ICC distributed-generation installer page. Roofing work may separately require an IDFPR roofing-contractor license, depending on the scope; ask who will do that work and verify the applicable credential.
Look for certified installers
Ask whether the people designing or installing your system hold relevant NABCEP certification, and check the credential details through NABCEP. Certification can indicate that a person has met a defined training or qualification standard; it does not replace checking the company’s scope, contract, references, or warranties. You can also ask whether the installer has certifications or training from the proposed panel and inverter manufacturers, what those cover, and whether they apply to the crew doing your project. Compare answers across bidders rather than treating a certification logo as a guarantee.
Compare quotes the same way
Request written quotes with the same assumptions and compare each item below. Ask the installer to explain differences and put any promised work or terms in the contract.
- System size: proposed kilowatts (kW) and the estimated annual production in kilowatt-hours (kWh/year), with the assumptions behind the estimate.
- Price: total cost and price per watt; for a payment plan, compare the monthly payment and any escalator.
- Equipment: panel and inverter brands and models.
- Coverage: panel product and performance warranties, inverter warranty, workmanship coverage, and coverage for roof penetrations.
- Project responsibilities: who handles permits, inspections, and the utility interconnection request, and what is included in the quoted cost.
Permits, interconnection and your HOA
For privately funded residential work, the local unit of government handles any required plan review, permits, and inspections; requirements vary by location. Ask who submits the paperwork and who schedules inspections. The homeowner or installer applies to the electric distribution company serving the property. Depending on location, that may be Commonwealth Edison Co, Ameren Illinois Company, MidAmerican Energy Co, or City of Springfield – (IL); confirm which serves your address and who will submit the interconnection request. Illinois law limits HOA restrictions: an association may not prohibit or effectively prohibit a solar energy system. Design and configuration requirements are allowed within limits, including that they may not reduce estimated annual production by more than 10% (765 ILCS 165/15 and 165/20). Review your association’s process with your installer before signing.
Red flags
- Pressure to sign the same day, or reluctance to let you compare written offers.
- Unlicensed or out-of-state crews, or unclear answers about who performs the electrical and roofing work.
- Vague production estimates, large upfront deposits, or unclear payment terms.
- Promises of federal tax credits for homeowner purchases made in 2026; homeowner credits ended December 31, 2025.
If a problem arises, the Illinois Attorney General’s Consumer Protection Division / Consumer Fraud Bureau is the primary state contact for home-improvement, contractor-conduct, or solar-sales complaints. For complaints specifically about ICC Part 468 certification or compliance, contact the ICC through its complaint procedure.
Leasing Solar Panels
For Chicago homes served by ComEd, Palmetto’s available option is a solar power purchase agreement (PPA). A PPA charges for the electricity the panels produce at an agreed price per kilowatt-hour, so payments may vary by season. A lease instead has a fixed monthly payment; availability depends on the utility. Learn more about buying or leasing solar.
With a PPA, you can use solar without paying the full system cost upfront. The provider owns the system and typically handles its maintenance, unlike a cash purchase where you own the equipment and are responsible for upkeep.
Solar PPA payments can be higher in sunnier months when production rises, while yearly costs may be similar to a lease. Review the agreement for payment terms, maintenance coverage, and responsibilities. Explore Palmetto LightReach for product details.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes, but the credit depends on your utility and your solar system’s permission-to-operate (PTO) date. Most Chicago homes are served by ComEd. Systems with PTO before January 1, 2025, generally received 1:1 retail-rate net-metering credits; unused credits could expire in April or October.
For ComEd systems approved on or after January 1, 2025, exported electricity earns credits at the Price to Compare rate, not the full retail rate. Credits can offset supply and transmission charges, but not delivery fees, fixed customer charges, or taxes, and unused credits roll over indefinitely.
Yes, an owned solar system may increase a Chicago home’s resale value. Zillow’s study found homes with solar panels sold for about 4.1% more on average. That national finding is not a guaranteed increase for an individual Chicago property; value depends on the home, system, roof, and buyer demand.
This potential value applies to purchased or owned panels, not leased or third-party-owned systems. With a lease or PPA, a buyer may need to assume the agreement, which can affect resale differently. Chicago roof shade and winter production may also shape buyers’ views of a system.
In Chicago, the LightReach lease lets homeowners go solar with no upfront cost and a low fixed monthly payment. The calculator estimates $58–$108 per month by home size, including $79 per month for a medium home.
A cash purchase is another option: estimates range from $21,257 to $37,648, with a typical 9.84-kW system estimated at $28,095. The federal 30% tax credit is no longer available for residential cash purchases following the 2025 federal law change. See the calculator above for pricing; your roof and electricity use affect costs.
In Chicago, a typical 9.84 kW solar lease is about $79 per month, estimated using Illinois’ 1,134 kWh/kW/year production ratio and a rate of $0.085/kWh. Actual terms and savings vary by home and agreement.
With LightReach, there’s no upfront cost. One payment covers the panels, installation, monitoring, maintenance, protection, and a 90% production guarantee. Palmetto owns the system and claims the commercial 30% ITC, passing savings through lower payments. Lease payments are typically below current electric bills, so savings can begin once the system operates.
In Chicago, Illinois Shines offers REC-contract value for qualifying solar; Illinois Solar for All provides eligible households low/no-upfront-cost options and bill-savings protections. ComEd lists rebates of $300/kW for qualifying solar and $300/kWh for eligible batteries. Eligible systems may use Illinois’s alternate property-tax valuation; it is not an exemption.
After the 2025 law change, cash purchases no longer qualify for the federal 30% residential tax credit. For LightReach leases, Palmetto claims the commercial ITC and says it passes savings through as lower monthly payments.
A typical 9.84 kW solar system in Chicago can produce about 12,900 kWh of electricity per year. The article’s NREL PVWatts estimate is 13,080 kWh annually for a 10 kW system, scaled to a 9.84 kW system.
Production is usually higher in summer and lower in winter. Your actual output depends on roof direction and pitch, shade from trees or nearby buildings, weather, and snow cover.
There isn’t one best solar company for every Chicago home: roof shade, roof condition, energy use, and utility rules all affect installation fit. Palmetto Solar has completed 9,050 installations in Illinois since 2020 and works with an installation network serving local homeowners.
When evaluating us, review your proposed system design, estimated production across Chicago’s seasons, total costs, financing terms, and maintenance responsibilities. For ComEd customers, check how a power purchase agreement’s seasonal payments and utility credits apply to your home.