Naperville, 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 conventional heating or cooling systems, then apply whichever valuation is lower.

The financial benefit varies by property but can result in significant annual savings on your property tax bill. Since solar systems typically increase a home’s value, this exemption protects you from paying higher property taxes on that increased value. To qualify, your solar system must be used primarily to offset your own electricity consumption (estimated at 110% or fewer kilowatt-hours than you used in the previous 12 months) and must conform to state standards. You’ll need to file a claim with your chief county assessment officer to receive this alternate valuation, and you must notify them within 30 days if you stop using the solar system for heating, cooling, or electricity generation.

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 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.

It’s important to note that this rebate works alongside other solar incentives like the federal tax credit and renewable energy credit programs. Since rebate amounts and application processes can vary between utilities and may change over time, homeowners should contact their utility company directly or work with an approved solar installer to get current rebate details and ensure proper application for this incentive.

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 certificates your solar system generates, 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 generated. All participating solar companies must provide standardized disclosure forms that clearly show project costs, expected savings, and how much of the REC incentive value they’re passing on to you. The program includes strong consumer protections, requires vendors to meet specific qualifications, and offers 15- or 20-year REC contracts depending on your project type.

To participate, you must work with an Illinois Shines approved vendor or designee, and your system must meet program requirements for size and installation standards. The program operates on a block system with limited capacity that gets filled on a first-come, first-served basis, so timing can be important. Illinois Shines can be combined with federal tax credits and utility rebates, and the program includes special provisions for equity-eligible contractors and communities to ensure broad access to solar benefits.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofits, and public facilities throughout Illinois. The program was created under the Future Energy Jobs Act and is designed to bring solar benefits to communities that have historically been underserved by clean energy programs.

The financial benefits are significant: participants pay no upfront costs for solar installations and are guaranteed savings on their electric bills. For residential rooftop solar, homeowners only pay 50% of the value of the bill credits they receive from their solar system. For community solar participants, ongoing costs and fees cannot exceed 50% of the value of energy produced by their subscription share. 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, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities. All participants must work through approved solar developers who handle the application process and system registration.

There are no specific deadlines mentioned in the program materials, but participants must commit to 15-year agreements for the REC payments. Homeowners should know that this program specifically includes consumer protections to prevent misleading business practices and ensures genuine economic benefits. The program offers multiple participation options including rooftop solar for homeowners and community solar subscriptions for renters and others who cannot install panels on their property.

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 net metering at around 10-15 cents per kWh, meaning you receive the same rate for excess solar power that you pay for electricity from the grid. However, starting January 1, 2025, new solar systems will only receive credits at the Price to Compare (PTC) rate, which is significantly lower – ranging 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 on your bill, not delivery charges, customer fees, or taxes.

The December 31, 2024 deadline is critical for maximizing your solar savings. Systems installed before this date will maintain full retail credit rates and can use credits to offset all bill components. Credit rollover policies vary by utility – some expire annually in spring, while others under the new 2025 rules roll over indefinitely. It’s important to properly size your system to avoid losing unused credits, as most utilities don’t provide cash compensation for excess credits that expire.