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 residential and commercial solar installations, helping reduce the overall cost of going solar by eliminating ongoing property tax increases.

The exemption covers the full assessed value of your solar energy system, which can result in significant annual savings depending on your local property tax rates and the value of your solar installation. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 2%, you would save approximately $400 per year in property taxes. The exemption continues for as long as you own the solar system, providing long-term financial benefits throughout the life of your investment.

To qualify, your solar energy system must be used primarily for on-site consumption of electricity, though systems that generate excess power for the grid may also be eligible. There are no income restrictions or application deadlines, and the exemption automatically applies when your property is assessed. Homeowners should ensure their solar installation is properly documented with local assessors to receive this benefit, and the exemption will remain in effect for the entire operational life of the solar system.

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 documentation mentions that 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 and change over time.

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 can pass Illinois Shines incentive payments directly to customers through reduced equipment costs, lower installation fees, or decreased monthly payments. The program requires all participating vendors to provide detailed disclosure forms that clearly outline total project costs, payment terms, and exactly how much of the incentive benefit you’ll receive. Illinois Shines operates on a block system with limited capacity, so timing can be important – once a block fills up, incentive rates may change for new projects.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofit organizations, and public facilities. The program was created to bring solar benefits to communities that have historically been underserved, helping Illinois reach its renewable energy goals while providing real savings to participants.

The program offers significant financial benefits with no upfront costs for participants. For residential installations, homeowners and renters pay only 50% of the value of the electricity credits they receive from their solar system, guaranteeing savings on their electric bills. Community solar participants receive electricity bill credits 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 protections.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities to participate. The program provides payments to solar developers for 15 years of Renewable Energy Credits (RECs), which helps offset system costs and enables the no-upfront-cost model for participants.

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 work depends on when your solar system receives Permission to Operate (PTO) and which utility company serves your area. Major utilities like ComEd, Ameren, and MidAmerican Energy all participate in this program, though each has slightly different terms.

For solar systems that receive PTO by December 31, 2024, you’ll receive full retail rate credits (typically 10-15 cents per kWh) for excess power you generate. These credits can offset your entire electric bill, including delivery charges and other fees. However, starting January 1, 2025, the program changes significantly. New systems will only receive credits at the Price to Compare (PTC) rate, which ranges from 3.7 to 8.3 cents per kWh depending on your utility and season. These reduced-rate credits can only offset supply and transmission charges, not delivery fees or other bill components.

The timing of when excess credits expire varies by utility and system installation date. For systems installed before 2025, unused credits typically expire in April or October each year with no compensation. Systems installed in 2025 or later will have credits that roll over indefinitely until they can be applied to eligible charges. Homeowners should carefully consider system sizing to avoid generating excess credits that may expire worthless, especially under the pre-2025 rules where oversized systems can significantly reduce savings potential.