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 throughout the state.

The financial benefit is significant because solar systems typically increase a home’s value by thousands of dollars. Without this exemption, homeowners would pay annual property taxes on that increased value for as long as they own their home. With the exemption in place, you keep all the value benefits of solar without the ongoing tax burden. The exemption covers the full assessed value of the solar energy system, including panels, inverters, and related equipment.

To qualify, your solar system must be certified and properly installed according to state requirements. The exemption applies automatically once your system is assessed – you don’t need to file separate paperwork beyond your standard property tax filings. There are no income restrictions or deadlines to worry about, and the exemption continues for the 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 your 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 document mentions that both ComEd and Ameren offer this rebate for installing solar panels with smart inverters, specific dollar amounts are not provided in the available information. The rebate is only available to customers of ComEd and Ameren Illinois – unfortunately, customers of 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 program requirements and ensure your system qualifies for the rebate.

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. The program requires all participating vendors to provide detailed disclosure forms that clearly outline project costs, incentive pass-throughs, system specifications, and estimated savings, making it easier to compare different solar offers.

To participate, you must work with an Illinois Shines approved vendor or designee, and your project must meet specific program requirements. The program operates on a block system with limited capacity, so timing can be important. Illinois Shines also includes strong consumer protections, including vendor vetting, required disclosure forms, and support for customers who experience issues with their solar provider. The program is designed to make solar accessible while ensuring customers have the information and protections they need to make confident decisions about their clean energy investment.

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 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 solar 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.

Credit rollover policies vary by utility and timing. Systems installed before 2025 typically see excess credits expire annually in April or October with no compensation. For systems installed after January 1, 2025, unused credits will roll over indefinitely until they can be applied to eligible charges. The December 31, 2024 deadline is crucial – installing before this date means you’ll receive significantly higher credit values and broader bill offset capabilities for the life of your system.