Waukegan, 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 property tax valuation that ensures your solar installation won’t increase your property taxes. When you file a claim with your county assessment officer, they will compare the value of your home with solar panels to what it would be worth with a conventional heating or cooling system, then apply whichever valuation is lower.

The financial benefit varies by property but can result in significant annual savings on your property tax bill. The exemption applies to solar energy systems that generate electricity primarily for use on your property, including systems under power purchase agreements or leases. To qualify, your solar system must be estimated to produce 110% or fewer kilowatt-hours than your home consumed in the 12 months before installation, and it must conform to standards set by the Illinois Department of Commerce and Economic Opportunity.

To claim this benefit, you must file an application with your chief county assessment officer after installing your solar system. The exemption continues as long as your solar system remains in use. If you stop using the solar system for heating, cooling, or electricity generation, you must notify the county assessment officer in writing within 30 days by certified mail. This exemption provides ongoing tax savings that can help offset the cost of your solar investment over time.

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 electrical 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, the 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 financial benefit and application requirements, you’ll need to contact your utility company directly, as rebate amounts and terms can vary between the two utilities and may change over time.

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, financing through a loan, leasing panels, or entering a power purchase agreement. All participating solar installers must be approved vendors who provide standardized disclosure forms that make it easy to compare bids and understand exactly what you’re getting. The program includes strong consumer protections, complaint tracking, and requires vendors to follow specific guidelines for sales and marketing.

To participate, you’ll need to work with an Illinois Shines approved vendor or designee, and your project must meet program requirements. The program operates on a block system with limited capacity, so timing can be important. REC contracts typically run for 15 or 20 years, and the program encourages getting multiple bids and checking vendor references before making your decision.

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 bringing solar benefits to communities that have historically been underserved. It’s administered by Elevate Energy and offers multiple ways to participate in solar energy without the typical barriers.

The program provides significant financial benefits with no upfront costs for participants. For residential installations, homeowners and renters only pay for half the value of the bill credits they receive from their solar system, guaranteeing savings. 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, participants must be income-qualified households, or nonprofits and public facilities serving low-income or environmental justice communities. Participants must work with solar developers and contractors registered with the Illinois Power Agency’s ILSFA program. The program provides payments to these companies for 15 years of Renewable Energy Credits (RECs), which helps offset system costs and enables the consumer savings.

The program offers strong consumer protections to ensure participants see real economic benefits and are protected from misleading business practices. Beyond individual savings, ILSFA supports job creation and training programs in underserved communities while promoting equitable access to solar energy across both urban and rural Illinois.

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 at rates between 6.8-8.3 cents per kWh depending on your utility (ComEd, Ameren, or MidAmerican Energy). Your excess credits roll over month to month and can offset your entire electric bill. However, unused credits expire annually in April or October with no compensation. Starting January 1, 2025, the program becomes less favorable – you’ll only receive credits for the supply and transmission portions of electricity rates (called Price to Compare rates), and these credits can only offset those specific charges, not delivery fees, customer charges, or taxes.

The timing of your solar installation is crucial for maximizing benefits. Systems installed before 2025 will have significantly better financial returns due to full retail crediting. If you’re considering solar, acting before the December 31, 2024 deadline could save you substantial money over your system’s lifetime. Municipal utilities like Naperville and Springfield offer different terms, with Naperville providing a cash-out option at about 4.3 cents per kWh for excess credits.