Peoria, IL Solar Panels
Solar Power in Peoria
If you’re a Peoria homeowner watching your electricity bill climb, you’re not alone. Illinois electricity prices have increased 22% from 2020 to 2024, leaving many central Illinois residents searching for a more predictable way to power their homes. Solar installation offers a way to take control of your energy and depend less on the grid.
At Palmetto, we make going solar clear and approachable. To learn more, explore our guide on home solar panels.
How Much Do Solar Panels Cost in Peoria, IL?
See real solar costs for Peoria, IL homes—built from our actual local installation data. This calculator reflects true numbers from homes across Peoria and nearby areas like Peoria Heights, Bartonville, Bellevue, and Dunlap. Explore what solar could cost for your home, using firsthand information you can trust.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Peoria electricity prices climbed about 20% between 2021 and 2024, so generating your own solar power gives you more predictable, stable energy costs for years to come.
- Illinois solar incentives can lower your costs through utility rebates, net metering credits, and a 20-year property tax exemption on your home’s added value.
- The average Peoria home can save around $62,000 over 25 years with solar, and leasing options let you start saving with no upfront cost.
Peoria Electricity Prices
If you’re a Peoria homeowner watching your electricity bill climb, you’re not alone. Rising energy costs have many central Illinois residents seeking a steadier path.
Illinois electricity prices rose about 20% between 2021 and 2024, climbing from 13.2 to 15.9 cents per kWh. For Peoria households, that steady increase adds up year after year.
Solar installation gives Peoria homeowners a way to generate their own power. By producing electricity on-site, you rely less on the grid and gain more predictability over what you pay each month.
Over the long term, solar can help Peoria families plan around stable energy costs instead of unpredictable rate hikes. It’s a lasting way to take more control of how you power your home.
Price of Energy: Illinois vs National Average
Peoria Area Utility Providers
If you’re a Peoria homeowner, your electricity likely comes from Ameren. In 2023, Ameren’s rate averaged 17.0¢ per kWh—higher than both the Illinois state average of 15.70¢ and the national average of 16.0¢.
Why the difference? Central Illinois rates reflect grid maintenance, fuel costs, and infrastructure needs. Seasonal demand swings and regional supply factors can push Ameren’s prices above state and national benchmarks. (Note: this chart shows 2023 data, as 2024 figures aren’t yet available.)
Solar can help Peoria homeowners depend less on the grid and gain more predictable energy costs. As utility rates shift over time, generating your own power offers a way to take greater control of your monthly energy expenses.
Peoria Utilities Electricity Rates
Illinois Solar Incentives
Peoria homeowners can tap into several solar incentives in Illinois that help offset the upfront cost of installing solar.
These programs include utility rebates for solar systems and battery storage, net metering credits, and a 20-year property tax exemption on your home’s added value. Income-eligible households may also qualify for no-upfront-cost options.
While the federal residential tax credit has ended, state and local incentives remain. Leasing through LightReach simplifies this, as Palmetto manages the commercial ITC and passes savings along via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Illinois Solar for All (ILSFA) | Rebate | Illinois Solar for All provides income-eligible households (at or below 80% of area median income) with no-upfront-cost solar installations that guarantee at least 50% savings on the value of energy produced. | Learn More |
| ComEd & Ameren Distributed Generation (DG) Smart Inverter Rebate – Solar | Rebate | Ameren Illinois customers receive a $300-per-kW upfront rebate for installing a solar system equipped with a smart inverter. | Learn More |
| ComEd & Ameren Distributed Generation (DG) Smart Inverter Rebate – Battery Storage | Rebate | Ameren Illinois customers can receive a $300-per-kWh cash rebate for installing a battery storage system with a smart inverter, with enrollment in a qualifying rate plan required. | |
| Virtual Power Plant (VPP) Program – Battery Storage Rebate | Rebate | Under the CRGA-mandated Virtual Power Plant program launching by June 30, 2026, residential battery storage customers can earn the $300/kWh DG rebate by allowing the utility to dispatch their battery during high-demand events. | Learn More |
| Illinois Net Metering / Smart Solar Billing | Net Metering | Illinois offers net metering for solar customers, with legacy customers (systems installed before January 1, 2025) receiving full retail-rate credits, while new customers receive supply-only credits under the Smart Solar Billing policy. | |
| Illinois Solar Property Tax Exemption | Property Tax Exemption | Illinois law exempts the added home value from a solar installation from property tax assessments for 20 years, protecting homeowners from higher property tax bills after going solar. | Learn More |
Illinois Solar for All (ILSFA) is a state program designed to make solar accessible to low- and moderate-income households, including residents of Peoria. To qualify, your household income must be at or below 80% of the Area Median Income (AMI) for your county. As a benchmark, a single-person household in Cook County qualifies with income under approximately $65,000. There is no credit check required, and initial income self-attestation is permitted.
Through ILSFA, an Approved Vendor installs a solar system at no upfront cost. Participants typically pay around $25/month for 15 years (approximately $4,500 total), after which the system transfers to them at no additional cost. The program legally guarantees a minimum of 50% savings on the retail value of the solar energy the system produces. Participants can choose to purchase with cash, a loan (with no prepayment penalties and no lien on the home), or through a lease or Power Purchase Agreement (PPA).
Important note for 2026: Single-family residential capacity was reached in 2025, so new applicants will need to join a waitlist for the 2026–27 program year cycle, which opens in June 2026. Visit illinoissfa.com to check eligibility and join the waitlist.
Ameren Illinois offers a Distributed Generation (DG) Smart Inverter Rebate of $300 per kilowatt (kW) of solar capacity installed. For a typical 8.5 kW residential system, this translates to $2,550 back in your pocket. The rebate is paid as cash within approximately 60 days after your system receives Permission to Operate (PTO) from the utility.
To be eligible, your solar system must include a qualifying “smart” inverter. This rebate is available to customers of Ameren Illinois, which serves the Peoria area — customers of most municipal utilities or electric cooperatives do not qualify. You do not need to enroll in a special rate plan to receive the solar-only portion of this rebate.
Contact Ameren Illinois at (800) 755-5000 or visit ameren.com/illinois to apply and confirm current program availability.
In addition to the solar rebate, Ameren Illinois offers a $300-per-kWh rebate for battery storage systems installed with a smart inverter. For a typical Tesla Powerwall 3 (13.5 kWh), this rebate can be worth approximately $4,000. The cash rebate is paid within approximately 60 days after your system receives Permission to Operate.
To qualify for the battery storage rebate, you must enroll in a specific utility rate plan: Ameren Illinois customers must enroll in the Peak Time Rewards demand response program. This rate plan is designed to align your battery usage with grid needs during peak demand periods.
This rebate is available to Ameren Illinois customers, which serves the Peoria area — not to customers of most municipal utilities or cooperatives. Contact Ameren Illinois at (800) 755-5000 or visit ameren.com/illinois for application details and to confirm current program status.
The Virtual Power Plant (VPP) program is a new battery storage incentive created by the Clean and Reliable Grid Affordability Act (CRGA), signed into law on January 8, 2026. Utilities are required to launch the short-term VPP program no later than June 30, 2026. Residential customers who enroll their battery storage system in the VPP can receive the same $300/kWh distributed storage rebate as the standard DG program — without needing to enroll in the BESH or Peak Time Rewards rate plans.
In a VPP, the utility can briefly direct your battery to discharge electricity to the grid during high-demand periods, helping stabilize grid reliability. In exchange, you receive the upfront rebate and potentially ongoing compensation for your participation in dispatch events. This makes battery storage financially attractive for homeowners in Peoria who may not otherwise qualify for or want to enroll in the standard DG rebate’s required rate plans.
A longer-term VPP program is also authorized to launch by December 31, 2028, which will expand eligibility to additional devices including smart thermostats and EV batteries. For more information, visit the Illinois Power Agency at ipa.illinois.gov or contact your utility.
Illinois law requires Ameren Illinois to offer net metering for residential solar systems up to 25 kW. If your solar system was interconnected and operational before January 1, 2025, you are grandfathered into full retail-rate net metering for the lifetime of your system — meaning excess electricity you send to the grid is credited at the full retail rate (roughly 12–15¢/kWh).
For new solar installations interconnected on or after January 1, 2025, Illinois has transitioned to a policy called Smart Solar Billing. Under this model, credits for excess generation apply only to the supply portion of your electricity bill — not delivery charges or fixed fees. This results in a lower effective credit rate of approximately 6–8¢ per kWh depending on your utility, which is roughly half the value of legacy net metering. This makes it especially important to size your system carefully to maximize self-consumption.
Unused credits can roll over month-to-month. For full details on your specific utility’s net metering or Smart Solar Billing policy, visit ameren.com/illinois.
Under Illinois law (35 ILCS 200/10-10), the added value that a solar energy system contributes to your home is excluded from your property tax assessment for 20 years. Solar panels typically increase a home’s market value by $15,000–$25,000, but without this exemption, that increase could add $250–$750 or more to your annual property tax bill. The exemption ensures homeowners in Peoria capture the full financial benefit of their solar investment without a tax penalty.
The exemption applies statewide to qualifying residential solar installations. To claim it, you must file Form PTAX-330 (Solar Energy System Assessment Freeze) with your local county assessor after your system is installed. The exemption is not automatic — you must apply to receive it.
For more information on the exemption and to download Form PTAX-330, contact your county assessor’s office or visit the Illinois Department of Revenue at tax.illinois.gov.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Illinois incentives.
Get a Free QuotePeoria Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Peoria enjoys four distinct seasons, with sunny summers and cloudier winters affecting solar output. Even with snow and shorter winter days, a well-designed system produces reliable clean energy year-round.
Solar Production in Peoria by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Peoria
We’ve mapped solar installations across the country, right down to the neighborhood level. Explore this interactive heatmap of Peoria, IL to see how many of your neighbors have made the switch to solar. Click any hexagon to discover the number of installations in that area.
Leasing Solar Panels
In Peoria, your electricity likely comes from Ameren, and the good news is that Palmetto offers a Power Purchase Agreement (PPA) in Ameren territory. With a PPA, you simply pay for the solar power your panels produce at a set price per kilowatt-hour, instead of paying a fixed monthly amount. Since panels generate more in summer, your solar bills naturally rise and fall with production—yet your yearly savings are comparable to a fixed lease.
Compared to paying cash, a PPA means no large upfront cost and no maintenance worries. Palmetto owns and cares for the system, so you can enjoy clean energy without the hassle of repairs or monitoring.
Learn more about your options to buy or lease and explore LightReach.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes, Peoria homeowners have access to net metering. Since Peoria is served by Ameren Illinois, systems turned on before January 1, 2025 receive full retail-rate credits for excess solar energy sent to the grid, with credits rolling over month to month.
For systems activated on or after January 1, 2025, Illinois moved to Smart Solar Billing. Credits now apply to the supply portion of your bill only—roughly 6–8¢ per kWh—making it important to size your system carefully.
Yes. In Peoria, purchased or owned solar panel systems can increase your home’s value. A Zillow study found homes with solar sell for about 4.1% more. Illinois also offers a 20-year property tax exemption on that added value.
This benefit applies to systems you own outright. Leased or PPA systems may affect resale differently, since a buyer typically assumes the existing lease agreement rather than receiving added home value.
Many Peoria homeowners go solar through a LightReach lease, starting at about $79/month for a medium-sized home with no upfront cost. Palmetto owns and maintains the system, so you enjoy clean energy without the investment.
If you prefer to buy, a cash purchase for an average Peoria home runs around $28,000 (about $2.86 per watt). Note the federal 30% tax credit is no longer available for residential cash purchases after the 2025 law change. See the calculator above for your home’s specific pricing.
With LightReach, Palmetto’s all-inclusive solar lease, one monthly payment covers your panels, installation, monitoring, maintenance, and a comprehensive protection program with a 90% Production Guarantee—all with no upfront cost.
For a typical 9.84 kW system in Peoria, the estimated payment is about $79/month. Since Palmetto owns the system and claims the 30% commercial tax credit, those savings lower your payment. Because it’s usually less than your current Ameren bill, you can start saving right away.
Peoria homeowners can access several Illinois solar incentives. These include Ameren’s Distributed Generation Smart Inverter Rebate ($300 per kW for solar and $300 per kWh for battery storage), net metering credits, a 20-year property tax exemption on your home’s added value, and the income-eligible Illinois Solar for All program.
The federal 30% residential tax credit is no longer available for cash purchases following the 2025 federal law change. However, a LightReach lease still benefits, since Palmetto claims the commercial ITC and passes those savings through as lower monthly payments.
Yes. Solar panels work well in Peoria’s climate. With about 4.7 peak sun hours per day and four distinct seasons, panels produce clean energy year-round—even on cloudy days, when they still generate reduced output.
Production naturally varies by season. Sunny summers bring peak output, while shorter, cloudier winter days and snow lower it. A well-designed system accounts for these swings, delivering reliable power across the year in central Illinois.
Solar panels are low maintenance. With Peoria’s four seasons, occasional debris or snow may collect, but rain and normal weather typically keep panels clear, and systems have no moving parts to wear out.
With a LightReach lease, Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost. It also includes a 90% Production Guarantee, so your system keeps performing without added hassle.