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 used primarily for on-site consumption of electricity, though systems that generate excess power for the grid may also be eligible. The exemption is automatically applied during property assessments – you don’t need to file a separate application, but you should verify with your local assessor that the exemption has been properly applied to your property.

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 or work with an approved solar installer who can help you navigate the rebate application process and ensure your system meets the smart inverter 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 your solar system generates over time. When you install solar panels through an approved vendor in the Illinois Shines program, your system produces these valuable credits that can be sold to utilities, creating a revenue stream that helps offset your solar installation costs.

The financial benefit comes in the form of REC incentive payments that approved solar vendors receive and may pass on to customers through reduced equipment costs, lower installation prices, or decreased lease and power purchase agreement rates. The exact dollar amount varies based on your system size, location, and current program rates, which are updated regularly through the program’s block structure. You can choose from three main financing options: purchasing your system outright (with or without a loan), leasing the equipment, or entering a power purchase agreement where you pay for the electricity the panels produce.

To participate, you must work with an Illinois Shines approved vendor or designee, and your project must meet specific technical requirements. The program operates on a first-come, first-served basis with limited capacity blocks, so timing can be important. REC contracts typically run for 15 or 20 years, and you should carefully consider how long you plan to stay in your current home when making your decision. The program also includes strong consumer protections, requiring vendors to provide detailed disclosure forms before you sign any contracts, making it easier to compare different offers and understand exactly what you’re getting.

Illinois Solar for All (ILSFA) is a state program that makes solar energy accessible to income-eligible households, nonprofit organizations, and public facilities. The program was created to bring solar benefits to communities that have historically been underserved, helping Illinois meet its renewable energy goals while providing economic benefits to participants.

The program offers significant financial benefits with no upfront costs for participants. For residential installations, homeowners and renters pay only 50% of the value of the electricity credits they receive from their solar system, guaranteeing savings on their electric bills. Community solar participants receive electricity bill credits based on their share of a solar project’s production. The program ensures that ongoing costs and fees never exceed 50% of the energy value produced, providing strong consumer protections.

To be eligible, homeowners and renters must meet income requirements and work with solar developers registered with the Illinois Power Agency’s ILSFA program. Nonprofit organizations and public entities must be located in environmental justice or low-income communities. All participants receive benefits through 15-year contracts where the program purchases Renewable Energy Credits (RECs) from the solar installations, which helps offset system costs and enables the guaranteed savings structure.

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 solar 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.

Credit rollover policies vary by utility and timing. Systems installed before 2025 typically see excess credits expire annually in April or October with no compensation. For systems installed after January 1, 2025, unused credits will roll over indefinitely until they can be applied to eligible charges. The December 31, 2024 deadline is crucial – installing before this date locks you into the more favorable full retail rate structure, while waiting until 2025 means accepting significantly lower credit values and more limited bill offset capabilities.