Peoria, 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 excludes the added value from your solar installation, potentially saving you hundreds or thousands of dollars annually in property taxes.

Here’s how it works: When you install a solar system, your property assessor will calculate two values – your home’s worth with a conventional heating/cooling system and its worth with the solar system. You’ll be taxed based on whichever value is lower, which is typically the conventional system value. This means the solar panels won’t increase your property tax bill, even though they add value to your home.

To qualify, your solar energy system must be used primarily to offset your own electricity consumption (producing no more than 110% of your annual usage) and must conform to state standards. You’ll need to file a claim for alternate valuation with your county’s chief assessment officer. The exemption continues as long as you use the solar system, but you must notify the assessor within 30 days if you stop using it.

This exemption applies to various types of solar installations, including rooftop panels and ground-mounted systems, whether you own them outright or have them through a lease or power purchase agreement. The benefit can provide significant long-term savings by keeping your property taxes stable despite the valuable addition of clean energy to your home.

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 program 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 rebate. Additionally, these utilities also offer a separate rebate for customers who install energy storage devices alongside their solar systems.

To take advantage of this rebate, you’ll need to work with your utility company and solar installer to ensure your system includes qualifying smart inverter technology. Since rebate amounts and specific requirements can change, it’s important to contact ComEd or Ameren directly (depending on your utility provider) to get current details about rebate amounts, application procedures, and any deadlines that may apply to your solar installation project.

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 your solar system produces, 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 your panels produce. All participating solar installers must be approved by the program and provide standardized disclosure forms that make it easy to compare bids and understand exactly what you’re getting. The program includes strong consumer protections, requires vendors to meet specific standards, and offers support if you have issues with your installer.

To participate, you’ll need to work with an Illinois Shines approved vendor who will handle the application process and ensure your system meets program requirements. The program operates on a block system with limited capacity, so timing can be important. Homeowners should get multiple bids, check vendor references, and carefully review all contract terms before moving forward with any solar installation.

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 traditionally haven’t had access to clean energy options. Income-eligible homeowners and renters can participate through rooftop solar installations or community solar subscriptions, while nonprofits and public facilities in environmental justice or low-income 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. The program ensures that ongoing costs and fees never exceed 50% of the energy value produced, providing strong consumer protection.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. The program provides payments to contractors for 15 years of renewable energy credits, which helps offset system costs. While no specific deadlines are mentioned in the program details, interested participants should contact registered solar developers to begin the application process and secure their spot in this beneficial 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 work depends on when your solar system receives Permission to Operate (PTO) and which utility company serves your area. This program is available through major Illinois utilities including ComEd, Ameren, and MidAmerican Energy.

For solar systems that receive PTO by December 31, 2024, homeowners receive full retail rate credits (typically 10-15 cents per kWh) for excess solar energy sent to the grid. These credits can offset your entire electric bill, including delivery charges and other fees. However, starting January 1, 2025, the program changes significantly. New solar installations 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 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. Credit rollover policies also vary by utility and installation date. For systems installed before 2025, excess credits typically expire annually in April or October with no compensation. For newer systems under the reduced credit structure, unused credits roll over indefinitely until they can be applied to eligible charges. Homeowners should avoid oversizing their solar systems to prevent forfeiting valuable credits that cannot be used or compensated.