Chicago, IL Solar Panels

Illinois Solar for All (ILSFA) is a state program designed to make solar accessible to low- and moderate-income households. To qualify, your household income must be at or below 80% of the Area Median Income (AMI) for your county. As a benchmark, a single-person household in Cook County (which includes Chicago) qualifies with income under approximately $65,000. There is no credit check required, and initial income self-attestation is permitted.

Through ILSFA, an Approved Vendor installs a solar system at no upfront cost. Participants typically pay around $25/month for 15 years (approximately $4,500 total), after which the system transfers to them at no additional cost. The program legally guarantees a minimum of 50% savings on the retail value of the solar energy the system produces. Participants can choose to purchase with cash, a loan (with no prepayment penalties and no lien on the home), or through a lease or Power Purchase Agreement (PPA).

Important note for 2026: Single-family residential capacity was reached in 2025, so new applicants will need to join a waitlist for the 2026–27 program year cycle, which opens in June 2026. Visit illinoissfa.com to check eligibility and join the waitlist.

ComEd offers a Distributed Generation (DG) Smart Inverter Rebate of $300 per kilowatt (kW) of solar capacity installed. For a typical 8.5 kW residential system, this translates to $2,550 back in your pocket. The rebate is paid as cash within approximately 60 days after your system receives Permission to Operate (PTO) from the utility.

To be eligible, your solar system must include a qualifying “smart” inverter. This rebate is available exclusively to customers of ComEd, which serves Chicago and northern Illinois. You do not need to enroll in a special rate plan to receive the solar-only portion of this rebate.

Contact ComEd at (800) 334-7661 or visit comed.com to apply and confirm current program availability.

In addition to the solar rebate, ComEd offers a $300-per-kWh rebate for battery storage systems installed with a smart inverter. For a typical Tesla Powerwall 3 (13.5 kWh), this rebate can be worth approximately $4,000. The cash rebate is paid within approximately 60 days after your system receives Permission to Operate.

To qualify for the battery storage rebate, ComEd customers must select the Basic Electric Service Hourly (BESH) real-time pricing plan. This rate plan is designed to align your battery usage with grid needs during peak demand periods.

This rebate is available to ComEd customers, which serves Chicago and northern Illinois. Contact ComEd at (800) 334-7661 or visit comed.com for application details and to confirm current program status.

The Virtual Power Plant (VPP) program is a new battery storage incentive created by the Clean and Reliable Grid Affordability Act (CRGA), signed into law on January 8, 2026. Utilities are required to launch the short-term VPP program no later than June 30, 2026. Residential customers who enroll their battery storage system in the VPP can receive the same $300/kWh distributed storage rebate as the standard DG program — without needing to enroll in the BESH rate plan.

In a VPP, the utility can briefly direct your battery to discharge electricity to the grid during high-demand periods, helping stabilize grid reliability. In exchange, you receive the upfront rebate and potentially ongoing compensation for your participation in dispatch events. This makes battery storage financially attractive for homeowners who may not otherwise qualify for or want to enroll in the standard DG rebate’s required rate plans.

A longer-term VPP program is also authorized to launch by December 31, 2028, which will expand eligibility to additional devices including smart thermostats and EV batteries. For more information, visit the Illinois Power Agency at ipa.illinois.gov or contact your utility.

Illinois law requires ComEd to offer net metering for residential solar systems up to 25 kW. If your solar system was interconnected and operational before January 1, 2025, you are grandfathered into full retail-rate net metering for the lifetime of your system — meaning excess electricity you send to the grid is credited at the full retail rate (roughly 12–15¢/kWh).

For new solar installations interconnected on or after January 1, 2025, Illinois has transitioned to a policy called Smart Solar Billing. Under this model, credits for excess generation apply only to the supply portion of your electricity bill — not delivery charges or fixed fees. This results in a lower effective credit rate of approximately 6–8¢ per kWh depending on your utility, which is roughly half the value of legacy net metering. This makes it especially important to size your system carefully to maximize self-consumption.

Unused credits can roll over month-to-month. For full details on your utility’s net metering or Smart Solar Billing policy, visit comed.com.

Under Illinois law (35 ILCS 200/10-10), the added value that a solar energy system contributes to your home is excluded from your property tax assessment for 20 years. Solar panels typically increase a home’s market value by $15,000–$25,000, but without this exemption, that increase could add $250–$750 or more to your annual property tax bill. The exemption ensures you capture the full financial benefit of your solar investment without a tax penalty.

The exemption applies statewide to qualifying residential solar installations, including homes in Chicago. To claim it, you must file Form PTAX-330 (Solar Energy System Assessment Freeze) with your local county assessor after your system is installed. The exemption is not automatic — you must apply to receive it.

For more information on the exemption and to download Form PTAX-330, contact your county assessor’s office or visit the Illinois Department of Revenue at tax.illinois.gov.

The City of Chicago’s Solar Express Permit Program offers residential solar customers an expedited, streamlined permitting process with a flat $100 savings on permit fees. In a city where permitting backlogs can significantly delay solar installations, priority review status can meaningfully shorten your project timeline and reduce administrative burden.

This program is available only to installations within Chicago city limits and can be combined with other incentives such as Illinois Shines, the DG Smart Inverter Rebate, and the Illinois Property Tax Exemption. Your solar installer will typically handle the permit application on your behalf.

For current eligibility criteria, application instructions, and fee schedules, contact the City of Chicago Department of Buildings at chicago.gov/bldgs.

The City of Chicago’s Green Permit Program provides priority review status and reduced permit fees for qualifying solar and renewable energy projects within Chicago city limits. Priority processing can significantly shorten installation timelines compared to standard permitting, which is especially valuable given Chicago’s historically busy permitting queues.

This program is separate from — but complementary to — the Solar Express Permit Program, and both may be available to qualifying solar installations. Chicago homeowners can combine the Green Permit Program with state-level incentives like Illinois Shines, the DG Smart Inverter Rebate, and the Illinois Property Tax Exemption to maximize their overall savings.

Contact the City of Chicago Department of Buildings at chicago.gov/bldgs to confirm current eligibility requirements, applicable fee reductions, and how to apply through your solar installer.