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 sell excess power back to the grid may still be eligible. The exemption is automatic once your solar system is installed and assessed – you don’t need to file a separate application. However, you should verify with your local assessor’s office that the exemption has been properly applied to ensure you’re receiving the full benefit.

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 efficiency.

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 install energy storage devices alongside their solar systems.

To take advantage of this incentive, you must be a customer of either ComEd or Ameren Illinois and install solar panels equipped with smart inverter technology. The rebate works in combination with other available solar incentives, including federal tax credits and renewable energy credit programs. For specific rebate amounts, application procedures, and any time limitations, you’ll need to contact your utility company directly, as these details can vary and change over time.

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 receive the REC incentive payments directly from utilities and can pass these savings on 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 total costs, payment terms, and how much of the incentive benefit you’ll receive, making it easier to compare different solar offers.

To participate, you must work with an Illinois Shines approved vendor 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 emphasizes consumer protection, requiring vendors to follow strict guidelines and providing support if issues arise. The program particularly encourages working with Equity Eligible Contractors to promote fair access to solar benefits across all communities.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofit organizations, and public facilities serving low-income communities. The program was created under the Future Energy Jobs Act and is administered by the Illinois Power Agency to help expand solar energy access to underserved communities across Illinois.

The program offers significant financial benefits with no upfront costs for participants. For residential installations, homeowners and renters pay only 50% of the value of the bill credits they receive from their solar system, guaranteeing savings on their electricity bills. Community solar participants receive electricity credits on their bills based on their share of a solar project’s production. The program provides these benefits through 15-year contracts where solar developers receive payments for Renewable Energy Credits (RECs), which helps offset system costs for customers.

To be eligible, homeowners and renters must meet income requirements and work with solar developers registered with the ILSFA program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities. All participants are protected by consumer safeguards ensuring that ongoing costs never exceed 50% of their system’s energy value, providing guaranteed savings and protection against unfair business practices.

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 – around 6.8 cents/kWh for ComEd customers, 8.3 cents/kWh for Ameren customers, and varies seasonally for MidAmerican Energy (6.7 cents summer, 3.7 cents winter). These reduced-rate credits can only offset supply and transmission charges, not delivery fees or other bill components.

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 while others roll over indefinitely. Homeowners should avoid oversizing their systems to prevent forfeiting unused credits and should work with their installer to optimize system size based on their utility’s specific policies.