Elgin, 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 home’s electricity consumption (estimated at 110% or less of your annual usage) and must conform to state standards. 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 you stop using your solar system for heating, cooling, or electricity generation, as this would end your eligibility for the exemption. This incentive applies to both owned and leased solar systems, making it accessible regardless of how you choose to go solar.

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 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 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 your solar system produces, 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, financing through a loan, leasing panels, or entering a power purchase agreement. All participating solar installers must be approved vendors who provide standardized disclosure forms that make it easy to compare bids and understand exactly what you’re getting. The program includes strong consumer protections, complaint resolution services, and requires vendors to meet specific standards for sales practices and project quality.

To participate, you’ll need to work with an Illinois Shines approved vendor or designee, and your project must meet program requirements for system size and installation standards. The program operates on a block system with capacity limits, so timing can be important. Illinois Shines also prioritizes equity by offering additional opportunities for projects that serve underrepresented communities and provides special support for equity-eligible contractors.

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. All ongoing costs and fees are capped at 50% of the energy value produced, ensuring meaningful savings for participants.

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 15-year contracts for Renewable Energy Credits (RECs), which help offset system costs. While no specific deadlines are mentioned in the program details, interested participants should contact registered solar developers 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 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 rate credits that can offset your entire electric bill. However, starting January 1, 2025, the program changes significantly. New systems will only receive credits at the Price to Compare (PTC) rate, which is much lower – averaging 6.8 cents per kWh with ComEd, 8.3 cents 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 timing of your system installation is crucial. Systems installed before 2025 will have excess credits that expire annually in April or October with no compensation, so proper sizing is important to avoid losing credits. Systems installed in 2025 or later will have credits that roll over indefinitely until used, but at the lower PTC rates. This makes the December 31, 2024 deadline particularly important for maximizing your solar investment’s financial benefits.