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 designed primarily to provide electricity for your property. The exemption is automatic once your system is installed and assessed – you don’t need to file a separate application. However, you should verify with your local assessor that the exemption has been properly applied to ensure you’re receiving the full benefit of this valuable incentive.

The Smart Inverter Rebate is a state-level incentive 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 electrical grid, helping maintain grid stability and reliability.

While the provided information confirms that both ComEd and Ameren offer rebates 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. To learn the exact rebate amount and application process, you’ll need to contact your utility company directly or visit their website for current program details and requirements.

Illinois Shines is a state-run solar incentive program that helps make solar energy more affordable for homeowners and businesses across Illinois. The program works by providing financial incentives through Renewable Energy Credits (RECs) that solar system owners generate when their panels produce clean electricity. These incentives are typically passed on to customers by approved solar vendors in the form of reduced equipment costs, lower installation prices, or decreased lease payments.

The program offers multiple ways to go solar, including purchasing a system outright (with cash or loans), leasing panels, or entering power purchase agreements. All participating solar installers must be approved vendors who provide standardized disclosure forms to help customers compare different offers and financing options. The program includes strong consumer protections, complaint tracking, and support for customers who experience issues with their solar providers.

Illinois Shines operates on a block system with limited capacity, so incentive levels may decrease as more projects are installed. The program particularly supports equity-focused initiatives and offers additional benefits for projects installed by Equity Eligible Contractors. Homeowners should obtain multiple bids from approved vendors, carefully review disclosure forms, and consider factors like roof condition, energy usage, and how long they plan to stay in their home when deciding on solar installation.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofits, and public facilities throughout Illinois. The program was created under the Future Energy Jobs Act and is designed to bring solar benefits to communities that have historically been underserved by clean energy programs.

The financial benefits are significant: participants pay no upfront costs for solar installations and are guaranteed savings on their electric bills. For rooftop solar systems, homeowners only pay for half the value of the bill credits they receive from their solar panels. 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 50% of the energy value produced, ensuring meaningful savings for participants.

To be eligible, homeowners and renters must meet income requirements and work with solar contractors registered with the Illinois Power Agency’s ILSFA program. Nonprofits and public facilities must serve low-income or environmental justice communities to qualify. The program operates through 15-year contracts where developers receive payments for Renewable Energy Credits (RECs) to help offset system costs. Participants can choose between installing rooftop solar on their property or subscribing to a community solar project, depending on their housing situation and preferences.

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. Systems installed in 2025 or later will have credits that roll over indefinitely until they can be applied to eligible 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.