There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Solar makes you a lot of money in Illinois. Yes, we said "makes!" Even though electricity prices are relatively low, the state gets enough sun that solar power saves you big money from day 1.
Since home solar is cheaper than ever before, which, combined with the Feds' 26% solar tax credit and Illinois's new direct SREC payments, means a solar panel system pays itself back quickly and makes you lots of money over its 25-year warrantied life!
Illinois’ adjustable solar block grant program, aka “Illinois Shines”, continues to produce strong results for homeowners and installers alike in 2020. However, there’s a need for state lawmakers to get more aggressive here with a solar energy harvesting requirement for utilities so the state can hit its 25% renewable energy goal by 2025.
Regardless, it's still a very wise move to go solar as a homeowner here. Take a good look at our rundown of Illinois solar power incentives below.
Learn what solar incentives are available to Illinois homeowners
See what Illinois solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Illinois solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Illinois
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
With net metering in place, your utility is required to track your renewable energy production and consumption during each monthly billing cycle. Any surplus you produce is carried over as a credit onto your future bills. Net metering is required to be available for you under Illinois law, unless your electricity is supplied by a cooperative or municipal cooperation. So far so good.
Illinois’ net metering policy would be just about perfect, if those credits hung around indefinitely, but they don’t. At the end of every annual period all remaining credits expire and revert back to the utility without compensation.
You may select an annual period that ends with the last day of either their April or October billing period, so at least you have a bit of flexibility to maximize your credit usage. What this means is that you need to make sure your solar system isn’t so big that you generate more electricity in a year than you use, not that you would want to anyway.
Note: Illinois is studying whether changes should be made to the net metering program. If the program is changed or done away with, it could have serious negative consequences for the financial returns of a solar installation here. Check here for updates.
Illinois does not offer any direct cash rebates for solar panels, but does offer an excellent solar program called "Illinois Shines" that pays solar system owners a lump sum based on the expected value of the energy their systems will produce over time.
The Illinois Shines adjustable block solar grant program provides a bunch of upfront cash when you go solar. When combined with the Federal 26% Solar Tax Credit, it can slash your solar installation costs by up to 65% on an average sized 6kW solar system!
Funds are paid out upfront to your solar installer, based on the expected amount of solar renewable energy certificates (SRECs) your system is projected to produce over 15 years.
To get this grant, you need to sign over your SREC rights to an approved vendor, or solar installer. The best installers will guarantee your payment is received out of the program. This may increase their quoted cost of your installed system, as installers usually take the Illinois Shines amount off your quoted install cost.
If you’re in Chicago and other places served by ComEd, you (or your installer) can expect to receive $70 for each SREC your solar system produces. An average 6kW home solar system cranks out about 110 SRECs over 15 years, netting a grant amount of almost $8,000.
Illinois has a property tax incentive to encourage solar power use. When you register your solar system with the chief county assessment officer, your solar equipment will be valued at no more than the value that would be given to a conventional energy system. That’s not as clear-cut as the 100% property tax exemption we’ve seen in a lot of states, but money saved is money saved, right?
If you live in other parts of the state, SREC prices are slightly higher at $82, for even more upfront savings.
We are not tax advisors, but there are no official letters from the federal government that state the value of the SRECs should be taken before the 26% federal solar tax credit.
Since the SRECs are actually paid out up front over a 15 year period, it would not match the yearly income threshold, and no 1099 will be issued. Basically, for most quoting calculations, you can expect to see the federal tax credit taken off of the complete system price and then see the SRECs amount deducted. Your installer will probably refer to them as SRECs or RECs instead of a grant or rebate, because of the tax implications, and they are specifically “Energy Certificates”.
Regardless, while you are selling your SRECs, it could be considered income. We recommend connecting with your tax preparer for more guidance.
Showing data for:
Prices based on a 10.8kW system, after 26% federal tax credit
51 solar companies in Illinois provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 105 Reviews
Peter, over 1 month
6.54 kW system installed on time in December 2020. Excellent service all around. Certasun took care of applying for the SRECs.
Read more
Peter, over 1 month
6.54 kW system installed on time in December 2020. Excellent service all around. Certasun took care of applying for the SRECs.
4.80 32 Reviews
Jim, over 1 month
Dave Sonner with Solar Power Midwest was great to work with and would recommend them to others.
Read more
Jim, over 1 month
Dave Sonner with Solar Power Midwest was great to work with and would recommend them to others.
4.74 238 Reviews
Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
Read more
Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
4.68 42 Reviews
Tim Epps, over 1 month
Very professional, all done none contact. They were very interested in keeping us informed as the process progressed. System looks great and is running great. They have answered all our questions and addressed any concerns.
Read more
Tim Epps, over 1 month
Very professional, all done none contact. They were very interested in keeping us informed as the process progressed. System looks great and is running great. They have answered all our questions and addressed any concerns.
4.64 31 Reviews
Overton , over 1 month
Very pleased from start to finish. They assisted me all the way, especially when I had questions. Installation was neat and clean and nothing was left behind to clean up. Highly recommend this company if you’re thinking of going solar. It’s a good feeling knowing i am producing my own power. Myles Overton
Read more
Overton , over 1 month
Very pleased from start to finish. They assisted me all the way, especially when I had questions. Installation was neat and clean and nothing was left behind to clean up. Highly recommend this company if you’re thinking of going solar. It’s a good feeling knowing i am producing my own power. Myles Overton
4.60 1,589 Reviews
Ana B, 1 week ago
March 11, 2022 blue raven installed solar panels in my house. The installers put a hole about 3 inches wide from the siding to the bedroom on the 3rd floor. The installers acknowledged the damaged, took pictures and "patched" it up until someone comes to take care of it. Some guy came April and fixed the inside and was not able to fix the outside, didn't even know about it nor was he prepared for the job. This was after a cancellation due to car issues. I was told someone will come for the outside hole. I had to keep calling to get someone to come back, they finally came out May 19, 2022. This person was also unprepared. He was not aware of what needed to be done, had no ladder, and stated he will have to see what blue raven wants to do. NO ONE has been here since, nor called or emailed. I held back the inspection for this EXACT reason, along with other issues. I spoke to Joshua Hill who is in the inspections team of some sort. He convinced me to get the inspection done and reassured me the repair will be done promptly. It is now June 27, 2022. The inspection was done on June 15, 2022. I have called and just keep being told it's on the work order and the company will reach out. It's funny how this company kept harassing to do the inspection, even got some lady claiming she is in the legal team for this inspection to scare me which didn't work. Now here we are. Now, here I am and no one gives a crap to fix the damage done. I CANNOT power wash my home which needs to be done, I keep getting notifications from the HOA. Since March the hole has been exposed to all elements, rain, humidity, moisture, etc. These elements cause mold and so much other damage. Anyone wanting to get solar, DO NOT USE THIS COMPANY! Even the sales girl was a pain to deal with after the issues. She was all great and dandy when getting the deal, after she put her nose in things that have nothing to do with her nor the business. I have all the messages to back up my story. This is not over!
Read more
Ana B, 1 week ago
March 11, 2022 blue raven installed solar panels in my house. The installers put a hole about 3 inches wide from the siding to the bedroom on the 3rd floor. The installers acknowledged the damaged, took pictures and "patched" it up until someone comes to take care of it. Some guy came April and fixed the inside and was not able to fix the outside, didn't even know about it nor was he prepared for the job. This was after a cancellation due to car issues. I was told someone will come for the outside hole. I had to keep calling to get someone to come back, they finally came out May 19, 2022. This person was also unprepared. He was not aware of what needed to be done, had no ladder, and stated he will have to see what blue raven wants to do. NO ONE has been here since, nor called or emailed. I held back the inspection for this EXACT reason, along with other issues. I spoke to Joshua Hill who is in the inspections team of some sort. He convinced me to get the inspection done and reassured me the repair will be done promptly. It is now June 27, 2022. The inspection was done on June 15, 2022. I have called and just keep being told it's on the work order and the company will reach out. It's funny how this company kept harassing to do the inspection, even got some lady claiming she is in the legal team for this inspection to scare me which didn't work. Now here we are. Now, here I am and no one gives a crap to fix the damage done. I CANNOT power wash my home which needs to be done, I keep getting notifications from the HOA. Since March the hole has been exposed to all elements, rain, humidity, moisture, etc. These elements cause mold and so much other damage. Anyone wanting to get solar, DO NOT USE THIS COMPANY! Even the sales girl was a pain to deal with after the issues. She was all great and dandy when getting the deal, after she put her nose in things that have nothing to do with her nor the business. I have all the messages to back up my story. This is not over!
4.55 22 Reviews
TORSHA AND CARL, over 1 month
I would like say 'thank you"! to the Tron team for such a wonderful solar experience. It will be great doing business with you guys. I especially want to thank our Salesman Marlon Erazo for being such a blessing during this transition. Our family had no idea about Solar and I was very skeptical at first. However, because of the diligence and kindness that Marlon has shown us, we were able to transition successfully. Marlon has been there with us from start to completion and we are grateful for him. Thank you Tron!
Read more
TORSHA AND CARL, over 1 month
I would like say 'thank you"! to the Tron team for such a wonderful solar experience. It will be great doing business with you guys. I especially want to thank our Salesman Marlon Erazo for being such a blessing during this transition. Our family had no idea about Solar and I was very skeptical at first. However, because of the diligence and kindness that Marlon has shown us, we were able to transition successfully. Marlon has been there with us from start to completion and we are grateful for him. Thank you Tron!
4.42 22 Reviews
Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
Read more
Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
4.34 44 Reviews
Dave Wrobel, over 1 month
We were presented with a $3500 added cost for 3-9 foot piers in concrete for our ground mount array only after having paid over half of the $25,000 cost - when they presented their pre-permit request for approval. One would think this was predictable. We're considering cancellation, costing at least $1000, rather than risk further surprises.
Read more
Dave Wrobel, over 1 month
We were presented with a $3500 added cost for 3-9 foot piers in concrete for our ground mount array only after having paid over half of the $25,000 cost - when they presented their pre-permit request for approval. One would think this was predictable. We're considering cancellation, costing at least $1000, rather than risk further surprises.
4.25 5 Reviews
americanuck, over 1 month
Jig Patel answered my inquire for answers to my home solar concerns. After about half a day of texting back and forth, I decided to meet him and get it done. As he is an independent contractor, he was able to give me the best deal amongst several competing companies. We decided to use SunRun to manage my solar and Bright Planet to install the hardware. Everything Jig promised turned out to be true. Bright Planet kept me informed every step of the way on the installation and SunRun sends out an email periodically to keep me up to date. The installation began within 3 weeks of signing the contract. Due to the weather, it was completed on 2 separate days, but the crews that came out were very friendly and knowledgeable. The installation is done very professionally and my city inspector only had good things to say about it. After signing the contract, I didn't have to do a thing. It was all taken care of by Jig, SunRun and Bright Planet. I'm more than pleased with my experience adding solar to my home.
Read more
americanuck, over 1 month
Jig Patel answered my inquire for answers to my home solar concerns. After about half a day of texting back and forth, I decided to meet him and get it done. As he is an independent contractor, he was able to give me the best deal amongst several competing companies. We decided to use SunRun to manage my solar and Bright Planet to install the hardware. Everything Jig promised turned out to be true. Bright Planet kept me informed every step of the way on the installation and SunRun sends out an email periodically to keep me up to date. The installation began within 3 weeks of signing the contract. Due to the weather, it was completed on 2 separate days, but the crews that came out were very friendly and knowledgeable. The installation is done very professionally and my city inspector only had good things to say about it. After signing the contract, I didn't have to do a thing. It was all taken care of by Jig, SunRun and Bright Planet. I'm more than pleased with my experience adding solar to my home.