Rockford, 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 system must be used primarily to offset your own electricity consumption (producing no more than 110% of your annual usage) and must meet state standards. You’ll need to file a claim with your county’s chief assessment officer to request this alternate valuation. 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 as your primary heating or cooling source.

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 efficiency.

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 credits. 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 procedures are followed.

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 decreased 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 companies must provide standardized disclosure forms that clearly show project costs, expected savings, and how much of the REC incentive they’re passing on to you. The program includes strong consumer protections, requires vendors to meet specific qualifications, and offers support if issues arise with your solar provider.

To participate, you must work with an Illinois Shines approved vendor or designee, and your project must meet program requirements for system size and installation standards. The program operates on a block system with limited capacity, so timing can be important. Illinois Shines contracts for RECs typically last 15-20 years, and you can still take advantage of other solar incentives like federal tax credits alongside this program.

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 help Illinois reach its renewable energy goals while ensuring that low-income communities can benefit from solar energy savings. Income-eligible homeowners and renters can participate through rooftop solar installations or community solar subscriptions, while nonprofits and public entities in environmental justice communities can install on-site solar projects.

The program offers significant financial protection with no upfront costs for participants. For rooftop solar installations, homeowners only pay 50% of the value of the bill credits they receive, guaranteeing savings on their electricity bills. Community solar participants receive electricity credits on their bills based on their share of the 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 the cost of installations and subscriptions for customers.

To be eligible, homeowners and renters must meet income requirements and work with solar developers registered with the Illinois Power Agency’s ILSFA program. The program is administered by Elevate Energy and requires participants to work through approved contractors who handle the application process. There are no specific deadlines mentioned, but participants should note that the financial arrangements are structured as 15-year agreements for the renewable energy credits generated by their solar systems.

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, meaning excess solar energy is credited at the same rate you pay for electricity. However, starting January 1, 2025, the program changes significantly. New systems will only receive credits at the “Price to Compare” rate, which is much lower than retail rates. For example, ComEd’s average rate in 2024 was 6.8 cents per kWh, while Ameren’s was 8.3 cents per kWh. These credits can only offset supply and transmission charges on your bill, not delivery charges, customer fees, or taxes.

The timing of when excess credits expire varies by utility and system installation date. For systems installed before 2025, unused credits typically expire in April or October each year with no compensation. Systems installed after January 1, 2025, will have credits that roll over indefinitely but can only be applied to specific bill components. This change makes proper system sizing crucial to avoid losing valuable credits and maximize your solar investment’s financial benefits.