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 value 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 continues for as long as you own the solar system, providing ongoing financial benefits throughout the life of your investment.

To qualify, your solar energy system must be designed primarily to provide electricity for your property. The exemption applies automatically once your system is installed and assessed – you don’t need to file a separate application. However, you should notify your local assessor about your solar installation to ensure the exemption is properly applied to your property tax bill.

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 the 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. To learn the exact rebate amount and application process, you’ll need to contact your utility company directly, as each may have different rebate structures and requirements.

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 financial benefit comes in the form of REC incentive payments that approved solar vendors receive and can pass on to customers as reduced equipment costs, lower installation fees, or decreased lease and power purchase agreement rates. The exact dollar amount varies based on your system size, location, and current program pricing blocks. Illinois Shines operates on a declining block structure, meaning incentive rates decrease as more solar capacity is installed statewide, so acting sooner typically means higher incentive values.

To participate, you must work with an Illinois Shines approved vendor or designee and your solar system must meet specific technical requirements. The program offers 15- or 20-year REC contracts and includes strong consumer protections, including required disclosure forms that help you compare bids and understand all costs upfront. Whether you choose to purchase, lease, or enter a power purchase agreement for your solar system, you can benefit from this program while also taking advantage of federal tax credits and utility net metering programs.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofits, 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 access to underserved communities across Illinois.

The program offers significant financial benefits with no upfront costs for participants. For residential installations, homeowners only pay 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. All ongoing costs and fees are capped at no more than 50% of the energy value produced by the system.

To be eligible, homeowners and renters must meet income requirements and work with solar developers registered with the ILSFA program. Nonprofits and public entities must be located in environmental justice or low-income communities. The program provides 15-year contracts for Renewable Energy Credits (RECs), which help offset system costs. Participants are protected by consumer safeguards that ensure economic benefits and prevent 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 work depends on when your solar system receives Permission to Operate (PTO) and which utility company serves your area. Major utilities like ComEd, Ameren, and MidAmerican Energy all participate in this program, though each has slightly different terms.

For solar systems that receive PTO by December 31, 2024, you’ll receive full retail rate credits (typically 10-15 cents per kWh) for excess power you generate. These credits can offset your entire electric bill, including delivery charges and other fees. However, starting January 1, 2025, the program changes significantly. New systems 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-rate credits can only offset supply and transmission charges, not delivery fees or other bill components.

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. For newer systems (PTO after January 1, 2025), credits roll over indefinitely but can only be applied to PTC charges. Homeowners should carefully consider system sizing to avoid generating excess credits that may expire worthless, especially under the pre-2025 rules where oversized systems can significantly reduce savings potential.