Waukegan, IL Solar Panels

Illinois Solar for All (ILSFA) is a state-run program funded through the Climate and Equitable Jobs Act (CEJA) that makes rooftop and community solar accessible to low- and moderate-income households. To qualify, your household gross income must be at or below 80% of the Area Median Income (AMI) for your county. Eligible participants pay nothing upfront for their solar system, and the program guarantees that your monthly costs and fees will never exceed 50% of the energy value your system produces — meaning you are always saving money.

The program has two tracks: Residential Rooftop Solar for homeowners who want panels on their own home, and Community Solar for those who want to subscribe to a share of a larger off-site solar array. Single-family homeowners in the program often see annual savings exceeding $1,000, with incentives covering 70–100% of installation costs. The 2025–2026 program budget stands at $186.3 million, administered by Elevate Energy.

This program is worth investigating before any other incentive if your household income qualifies. Residents of Waukegan can contact the program administrator at [email protected] or visit the official state resource through the Illinois Power Agency to check eligibility and apply.

Both ComEd (northern Illinois) and Ameren Illinois (central and southern Illinois) offer a Distributed Generation (DG) Rebate of $300 per kilowatt (kW) of solar capacity installed. For a typical 8 kW residential solar system, that translates to a $2,400 upfront rebate directly from your utility. The rebate is paid after installation and interconnection approval.

To be eligible, your solar system must include a “smart” inverter that enables grid integration and demand response participation. ComEd customers must also select the Rate Basic Electric Service-Hourly rate plan, while Ameren customers must enroll in the Peak Time Rewards program to qualify for the battery storage portion of the rebate. The solar-only rebate is available to all eligible residential customers in each utility’s service territory.

Waukegan is served by ComEd. This rebate can be stacked with the Illinois Shines SREC program and other available incentives, significantly reducing your net installation cost. Contact ComEd at (800) 334-7661 or work with your solar installer to ensure proper enrollment at the time of installation.

In addition to the solar rebate, ComEd and Ameren Illinois offer a $300 per kilowatt-hour (kWh) rebate for battery energy storage systems installed with a smart inverter. For example, pairing a 5 kW solar system with a 10 kWh battery would earn you $1,500 for the solar plus $3,000 for the battery — a combined $4,500 rebate. This makes battery storage significantly more affordable for Illinois homeowners.

Eligibility requires that the battery system include a smart inverter capable of grid integration and demand response. ComEd customers must be enrolled in the Rate Basic Electric Service-Hourly plan to qualify for the battery storage rebate. The battery does not need to be installed at the same time as the solar system — existing solar customers can add storage and still claim the rebate.

ComEd also separately advertises battery storage rebates in the range of $300–$400 per kWh of usable storage capacity for customers in its northern Illinois service territory. Waukegan homeowners should contact ComEd at (800) 334-7661 to confirm current rebate levels and enrollment requirements before purchasing a battery system.

The Illinois Clean and Reliable Grid Affordability Act (CRGA), signed by Governor J.B. Pritzker on January 8, 2026, creates a new battery storage rebate program tied to Virtual Power Plant (VPP) participation. Owners of distributed battery storage systems can apply for a rebate of $250 per kWh of storage capacity, provided they commit to participating in a scheduled-dispatch VPP program for five years. The program is set to launch no later than June 30, 2026, and is open to all customer classes.

In addition to the upfront $250/kWh rebate, VPP participants receive ongoing annual compensation of at least $10 per kW of average dispatch during scheduled dispatch hours. This means your battery earns money each year by providing electricity back to the grid during peak demand periods, helping to stabilize the grid while generating income for you. Utilities are required to submit program details to the Illinois Commerce Commission (ICC) by June 1, 2026.

This program can be stacked with the utility DG rebate and other incentives. The CRGA also establishes a broader 3 GW statewide energy storage procurement target by 2030 and a “Storage for All” initiative to expand battery access to nonprofits, public facilities, and environmental justice communities. Monitor the Illinois Power Agency website at ipa.illinois.gov for program launch announcements and application details.

The Section 48E Clean Electricity Investment Tax Credit (ITC) provides commercial, agricultural, and business customers a federal tax credit equal to 30% of the total installed cost of qualifying solar energy systems and standalone battery storage systems. This credit is available for commercial projects through December 31, 2032, making it a powerful long-term incentive for business owners, landlords, and agricultural operators in Illinois.

Unlike the residential ITC (which has expired for new installations), the commercial Section 48E credit remains fully available at 30% through 2032, stepping down to 26% in 2033 and 22% in 2034. Tax-exempt entities such as nonprofits, government agencies, and houses of worship can take advantage of a “direct pay” option, converting the 30% credit into a refundable cash payment — effectively a grant — significantly lowering upfront project costs.

Commercial solar and storage projects may also benefit from IRS Section 179 accelerated depreciation, which allows qualifying solar equipment to be classified as 5-year property for tax purposes, providing additional tax savings. Consult a qualified tax professional to determine how these federal incentives interact with your specific business tax situation and to ensure proper documentation for IRS compliance.

Illinois offers a state income tax credit for residential solar installations equal to 25% of the total installed system cost, capped at $10,000 per taxpayer. For example, a $30,000 solar installation would generate a $7,500 state tax credit, while a $40,000 system would max out at the $10,000 cap. This credit directly reduces the amount of Illinois state income tax you owe, dollar for dollar.

This incentive is separate from the REC-based Illinois Shines program and can be stacked with SREC payments, utility rebates, and other available incentives. The credit is applied to your Illinois state income tax return for the year in which your solar system is placed in service. If the credit exceeds your tax liability for that year, consult a tax professional about carryforward provisions.

Note: As of 2026, Illinois legislators have been actively discussing and refining the structure of this state tax credit. Always verify the current status and eligibility requirements with the Illinois Department of Revenue or a qualified tax professional before filing, as program details may be updated. The Illinois Power Agency (ipa.illinois.gov) is a good starting point for official state energy program information.

Under Illinois law (35 ILCS 200/10-5), county assessors are required to assess a solar energy system at the same value as a conventional heating and cooling system — not at the full market value the solar installation adds to your home. In practical terms, this means that if you already have standard HVAC equipment, adding solar panels should result in zero increase to your assessed property value and therefore no increase in your annual property tax bill.

This is a significant long-term financial benefit. A typical residential solar system valued at approximately $25,800 could otherwise increase your annual property taxes by hundreds of dollars per year. Over the 25–30 year life of a solar system, the cumulative property tax savings can exceed $13,000 depending on your local tax rate. The exemption is permanent and applies for the full life of the equipment.

To ensure the exemption is properly applied, homeowners in Waukegan should file the PTAX-330 form with their county assessor’s office after installation. Your solar installer may be able to assist with this paperwork. The exemption applies statewide to all Illinois counties and is available to all homeowners who install a qualifying solar energy system, regardless of income or system size.

Illinois provides a full sales tax exemption on the purchase of solar energy equipment, including solar panels, inverters, racking, and related components. Illinois’ combined state and local sales tax rates typically range from 6.25% to over 10% depending on your municipality, so this exemption can represent a meaningful reduction in your upfront installation cost. On a $25,000 system, the sales tax savings alone could be $1,500–$2,500 or more.

The exemption applies automatically at the point of sale when purchasing qualifying solar equipment from a retailer or installer in Illinois. You do not need to file a separate application — your solar installer should apply the exemption when invoicing you for equipment. If you are purchasing equipment directly, ensure your vendor is aware of the exemption and applies it correctly.

This incentive can be stacked with all other available Illinois and federal solar incentives, including the Illinois Shines SREC program, utility rebates, and the state income tax credit. It applies to both residential and commercial solar installations statewide.

As of January 1, 2025, Illinois transitioned to a new net metering structure called Smart Solar Billing (NEM 2.0) for all new solar installations interconnected after December 31, 2024. Under Smart Solar Billing, excess electricity your solar system sends to the grid earns credits only on the supply portion of your utility bill — not the full retail rate. This supply-only credit is approximately 6–8 cents per kWh depending on your utility, which is roughly half the value of the legacy full retail net metering rate. Delivery charges, taxes, and fees are still billed in full.

Homeowners who had their solar system installed and all interconnection documentation submitted to their utility by 5:00 PM on December 31, 2024 are grandfathered into the legacy full retail net metering program for the lifetime of their system — up to 30 years. Under legacy net metering, excess generation credits are applied at the full retail rate, credits roll over monthly, and any remaining annual balance is paid out at the utility’s avoided cost rate. This grandfathered status is a significant long-term financial advantage.

For new installations in 2025 and beyond, the reduced credit rate under Smart Solar Billing means it is more financially beneficial to size your solar system to match your consumption as closely as possible, rather than overbuilding to export excess power. Battery storage systems can help maximize self-consumption and improve the economics of solar under the new billing structure. Waukegan residents served by ComEd can contact ComEd at (800) 334-7661 for details specific to your service territory.

Illinois’ Community Solar program allows residents and businesses to subscribe to a portion of a larger, shared solar array located off-site — no rooftop installation required. Subscribers receive credits on their monthly utility bill based on the electricity their share of the solar array generates. Illinois households can save up to 20% on their electricity bills through community solar subscriptions, making it an excellent option for renters, condo owners, or homeowners whose roofs are not suitable for solar panels.

Community solar projects in Illinois are developed under the Illinois Shines (Adjustable Block Program) framework and must meet state program requirements. Subscriptions are typically offered at a discount to the retail electricity rate, and there are no upfront installation costs. Low-income households in Waukegan may qualify for additional savings through the Illinois Solar for All community solar track, which provides enhanced bill credits for income-eligible subscribers.

To find available community solar projects in your area, contact the Illinois Power Agency at ipa.illinois.gov or work with a community solar provider operating in your utility territory. Subscription terms, savings amounts, and availability vary by project and location, so compare offers carefully before signing a contract.