Evanston, 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.

To qualify for this exemption, your solar energy system must be primarily used to offset your home’s electricity consumption (producing no more than 110% of your annual usage) and must conform to standards set by the Illinois Department of Commerce and Economic Opportunity. The system can be owned by you directly or through a third-party lease or power purchase agreement. You’ll need to file a claim for alternate valuation with your chief county assessment officer to receive this benefit.

This exemption continues as long as your solar system remains in use for its intended purpose. If you stop using the solar system or make changes to it, you must notify your county assessment officer within 30 days by certified mail. This incentive helps make solar more affordable by ensuring your property tax bill won’t increase simply because you’ve invested in clean energy for your home.

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 rebates 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 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 (with cash or loans), leasing panels with monthly payments, or entering power purchase agreements where you pay for the electricity your panels produce. All participating solar installers must be approved by the program and 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 tracking, 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 who will handle the application process and ensure your system meets program requirements. The program operates on a block system with limited capacity, so timing can be important. Homeowners should get multiple bids, check vendor references, and carefully review all contract terms before making a decision. The program also emphasizes equity by supporting contractors from underrepresented communities and ensuring solar access across different income levels.

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 for half 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, which help offset system costs. While no specific deadlines are mentioned in the program materials, 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. ComEd customers receive credits worth the full retail rate, while Ameren and MidAmerican Energy customers also get full retail credits. However, starting January 1, 2025, the program changes significantly – new solar systems will only receive credits at the “Price to Compare” rate, which is much lower (around 6.8 cents/kWh for ComEd, 8.3 cents/kWh for Ameren, and 6.7 cents summer/3.7 cents winter for MidAmerican). 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 PTO date. For systems installed before 2025, unused credits typically expire in April or October each year with no compensation. However, systems installed after January 1, 2025, will have credits that roll over indefinitely until they can be applied to eligible charges. To maximize your savings potential, it’s important to size your system appropriately to avoid generating excessive credits that may expire without value.