Evanston, IL Solar Panels

Illinois offers a property tax exemption for homeowners who install solar energy systems. This incentive excludes any added property value from your solar installation when calculating your annual property taxes. In other words, even though solar panels typically increase your home’s value, you won’t pay higher property taxes because of that increase.

To qualify, your solar energy system must be used primarily for on-site energy generation for your home. The exemption applies automatically once your system is installed and assessed, and it continues for the life of the solar equipment. There’s no application deadline or time limit—the exemption remains in effect as long as the solar system is in place and operational.

This exemption is particularly valuable because solar installations can add significant value to your property. Without this protection, homeowners might face increased annual tax bills that could offset some of the energy savings from going solar. The exemption ensures that your investment in clean energy doesn’t result in a higher property tax burden, making solar more affordable over the long term.

The Distributed Generation Rebate (Smart Inverters) is a state program in Illinois that provides cash rebates to homeowners who install solar energy systems equipped with smart inverter technology. Smart inverters are advanced devices that not only convert solar energy into usable electricity for your home, but also help stabilize the electrical grid by communicating with utility systems. This program rewards you for choosing equipment that benefits both your household and the broader community’s energy infrastructure.

The rebate offers $300 per kilowatt (kW) of installed solar capacity, which typically translates to approximately $2,000 to $3,000 in cash back for an average residential solar system. This is a direct rebate payment, meaning you receive actual cash back after your system is installed and approved, helping to reduce your overall investment in solar energy.

While specific eligibility requirements weren’t available in the source information, these programs typically require that your solar system uses approved smart inverter equipment and meets state technical standards. It’s important to work with your solar installer to confirm that your system qualifies before installation and to understand the application process, timing requirements, and any program funding limitations that may affect availability.

Illinois Shines (officially known as the Adjustable Block Program) is a state-run solar incentive program that helps Illinois homeowners and businesses reduce the cost of installing solar panels. The program works through a system of Renewable Energy Credits (RECs) – when your solar system generates clean energy, it creates these credits, which utilities purchase to meet state renewable energy goals. Approved solar vendors receive payments for these RECs and typically pass this value on to you through reduced installation costs, lower lease payments, or discounted power purchase agreement rates.

The specific financial benefit you receive depends on your project type, system size, and how you choose to finance your solar installation. Illinois Shines doesn’t pay homeowners directly – instead, approved solar vendors contract with utilities and receive the REC payments, then pass savings to customers in various ways. You can purchase your system outright (with cash or a loan), enter a lease agreement, or sign a power purchase agreement where you pay only for the electricity your panels produce. The program requires vendors to provide a standardized Disclosure Form before you sign any contract, making it easier to compare offers from different installers.

To participate, you must work with an Illinois Shines Approved Vendor or Designee, and your system must meet program requirements for distributed generation projects (rooftop or ground-mounted systems that generate electricity for on-site use). The program operates on a block system with limited capacity that gets reserved on a first-come, first-served basis, so incentive levels can change as blocks fill up. You’ll want to speak with multiple approved vendors to understand your options, carefully review the Disclosure Form to see exactly how much of the incentive value will be passed through to you, and consider factors like how long you plan to stay in your home and whether your roof is suitable for solar panels.

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 covers the upfront costs of solar installation, so you can start saving on your electric bills without any initial investment. You’ll work with registered solar contractors who handle the installation and program paperwork on your behalf.

The financial benefit is straightforward: you pay no money upfront, and your ongoing costs will never exceed 50% of the value of the electricity your solar system produces. This means you’re guaranteed to save at least half of what your system generates. Income-eligible homeowners can install solar panels on their roof or property, while renters and homeowners can also participate through community solar subscriptions that provide electricity credits on their bills.

To qualify, you must meet income-eligibility requirements and work with a solar contractor registered with the Illinois Power Agency’s ILSFA program. The program is available to Illinois residents in income-eligible households, as well as nonprofits and public facilities serving low-income or environmental justice communities. Your contractor will verify your eligibility and submit your application to the program, which provides payments for 15 years of renewable energy credits to help offset the system costs.

There are no specific deadlines mentioned, though funding availability may vary. It’s important to choose a registered ILSFA contractor, as the program includes consumer protections against misleading business practices. The program is administered by Elevate Energy and overseen by the Illinois Power Agency to ensure participants receive genuine economic benefits from going solar.

Illinois’ Net Billing program determines how you receive credit for the excess solar energy your system sends to the grid. The rules and financial benefits depend significantly on when your system receives Permission to Operate (PTO) from your utility company.

For systems with PTO by December 31, 2024: You receive full retail rate credits for excess energy sent to the grid, which can offset your entire electric bill including all charges. Most customers receive kilowatt-hour (kWh) credits that roll over month to month, while customers on Time-of-Use rates receive monetary credits based on the price of power when the solar energy is produced. However, excess credits expire annually in April or October with no compensation, so it’s important to size your system appropriately to avoid forfeiting unused credits.

For systems with PTO on or after January 1, 2025: The program changes to a reduced credit structure. Excess energy exported to the grid (measured in 30-minute intervals) is credited at the Price to Compare (PTC) rate, which includes only supply and transmission charges—not delivery charges. For ComEd customers, this averaged about 6.8 cents per kWh in 2024, while Ameren customers received approximately 8.3 cents per kWh. MidAmerican Energy customers see seasonal rates of roughly 6.7 cents in summer and 3.7 cents in winter. These credits can only offset PTC charges on your bill, not delivery charges, customer charges, or taxes. The benefit is that unused credits roll over indefinitely until they can be applied to future PTC charges.

The December 31, 2024 deadline is critical—systems receiving PTO before this date lock in significantly more favorable credit terms. If you’re considering solar, understanding your utility company’s specific Net Billing rules and timing your installation accordingly can substantially impact your long-term savings.