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 $400 per year in property taxes. This exemption continues for the life of the solar system, providing long-term financial benefits beyond the initial installation.

To qualify, your solar energy system must be certified and installed according to state requirements. The exemption is automatic once your system is properly documented with your local assessor’s office. There are no income restrictions or application deadlines, making this benefit accessible to all Illinois homeowners who choose solar energy.

The Smart Inverter Rebate is a state-level incentive program offered by two major Illinois utilities – ComEd and Ameren Illinois – 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 electrical grid, helping maintain grid stability and reliability.

While the provided information confirms that both ComEd and Ameren offer this rebate program, specific dollar amounts and rebate values are not detailed in the source material. The program is only available to customers of these two utilities – homeowners served by municipal utilities or rural electric cooperatives are not eligible for this particular rebate. Additionally, both utilities offer a separate rebate for customers who choose to add energy storage devices to their solar installations.

To take advantage of this incentive, you’ll need to be a ComEd or Ameren Illinois customer and install a qualifying solar system with smart inverter technology. Since rebate amounts, application procedures, and any potential deadlines are not specified in the available information, it’s important to contact your utility directly or work with an approved solar installer who can provide current program details and help you navigate the application process.

Illinois Shines is a state-run solar incentive program that helps Illinois homeowners and businesses reduce the cost of installing solar panels. The program works by purchasing Renewable Energy Credits (RECs) from solar system owners over 15 or 20-year contracts, providing long-term financial benefits that solar installers can pass on to customers through reduced equipment costs, lower installation prices, or discounted lease payments.

The program operates through approved solar vendors who handle the application process and contract directly with utilities to receive REC payments. While specific dollar amounts vary by project size and location, these incentives can significantly reduce your upfront solar costs. To participate, you must work with an Illinois Shines approved vendor or designee, and your system must meet program requirements including proper permitting and inspections.

Illinois Shines offers multiple financing options including system purchase (with or without loans), leasing, and power purchase agreements. The program includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contract. There are no specific application deadlines, but incentive levels may change as program capacity fills up in blocks, so it’s wise to explore your options sooner rather than later.

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 serving low-income or environmental justice communities can also access on-site solar projects.

The financial benefits are significant: participants pay no upfront costs for solar installations 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. For community solar subscribers, ongoing costs and fees cannot exceed 50% of the value of energy produced by their share of the solar project. The program provides these benefits through 15-year contracts where solar developers receive payments for Renewable Energy Credits (RECs), which helps offset system costs. To be eligible, participants must be income-qualified and work with solar contractors registered with the Illinois Power Agency’s ILSFA 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 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 receive full retail rate credits (typically 10-15 cents per kWh) that can offset your entire electric bill. However, starting January 1, 2025, the program changes significantly. New solar systems will only receive credits at the Price to Compare (PTC) rate, which is much lower – averaging 6.8 cents/kWh with ComEd, 8.3 cents/kWh with Ameren, and varying seasonally with MidAmerican Energy (6.7 cents summer, 3.7 cents winter). These reduced-rate credits can only offset supply and transmission charges, not delivery fees, customer charges, or taxes.

The December 31, 2024 deadline is critical for maximizing your solar savings. Systems installed before this date maintain grandfathered status with better credit rates and broader bill offset capabilities. Credit rollover policies also vary by utility – some expire annually in spring while others roll over indefinitely. Homeowners should avoid oversizing their systems to prevent forfeiting unused credits that expire without compensation.