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 size 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 remains in effect for the life of the solar system, providing long-term financial benefits.

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. The exemption is automatically applied during property assessments – you don’t need to file separate paperwork, but you should verify with your local assessor that the exemption has been properly applied to your property.

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 this rebate for installing solar panels with smart inverters, 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 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 rebate application process and ensure your system meets the smart inverter requirements.

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. To participate, you must work with an Illinois Shines approved vendor who will handle the application process and ensure your system meets program requirements. The program includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contracts, so you can clearly compare different offers and financing options.

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 facilities 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. To be eligible, participants must meet income requirements and work with solar contractors registered with the program. The program provides 15-year contracts for Renewable Energy Credits, which help offset system costs and ensure long-term savings 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 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. For systems installed before 2025, unused credits typically expire in April or October each year with no compensation. After 2025, credits for new systems will roll over indefinitely until they can be used to offset eligible charges. Homeowners should carefully consider system sizing to avoid generating more credits than they can use, especially given the upcoming changes to credit values and expiration policies.