Summary of Illinois solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to Illinois homeowners
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See what Illinois solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Illinois solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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.
Net energy metering in Illinois
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 solar rebates
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 grant program
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.
Advantageous property tax treatment
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.
Cost of solar panels in your part of Illinois after all applicable solar incentives
Showing data for:
Prices based on a 10.8kW system, after 26% federal tax credit
Solar prices near you
Payback period
10.4-12.7 years
Net profit (savings less system cost)
$30,525-$37,309
Average size system installed in IL in 2021
10.8kW
Solar panel cost calculator
Best 10 solar companies in Illinois
49 solar companies in Illinois provide pricing on SolarReviews. Here are the best rated companies near you.
4.82 76 Reviews
Latest review
Emily Lin, 1 week ago
We’ve been very impressed with Certasun throughout the process and highly recommend them. The 2 main factors that made us choose Certasun was the specs of the panels and the expertise and service they guarantee. Compared to the other companies we received quotes from, Certasun provided a much more thorough evaluation of our needs, answered all our questions in detail, and stayed on top of the changing legislation in IL. We were really impressed with the specs and ratings of Sunpower panels so was happy that Certasun uses their products. We had our system installed a few weeks ago and are very happy we went with Certasun/Sunpower.
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Latest review
Emily Lin, 1 week ago
We’ve been very impressed with Certasun throughout the process and highly recommend them. The 2 main factors that made us choose Certasun was the specs of the panels and the expertise and service they guarantee. Compared to the other companies we received quotes from, Certasun provided a much more thorough evaluation of our needs, answered all our questions in detail, and stayed on top of the changing legislation in IL. We were really impressed with the specs and ratings of Sunpower panels so was happy that Certasun uses their products. We had our system installed a few weeks ago and are very happy we went with Certasun/Sunpower.
4.73 193 Reviews
Latest review
Joanne, 5 days ago
The staff of SunBadger Solar was attentive and thorough in their planning and execution of our solar system. We love how it looks. The time delays were related to WE Energies, not SunBadger Solar.
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Joanne, 5 days ago
The staff of SunBadger Solar was attentive and thorough in their planning and execution of our solar system. We love how it looks. The time delays were related to WE Energies, not SunBadger Solar.
4.68 40 Reviews
Latest review
Amoneeta, over 1 month
You can't go wrong with AES. Aur and his competent crew have installed grid intertie systems on two of my houses. The whole process from beginning to end went smoothly with almost nothing needed from me. One was entirely installed over the weekend. I couldn't be happier with the systems which are producing enough energy to make my electric bill usage $0 some months. Saving money while offsetting carbon emissions never felt better. Having a healthy planet is not just important for future generations' physical health but also mental health.
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Amoneeta, over 1 month
You can't go wrong with AES. Aur and his competent crew have installed grid intertie systems on two of my houses. The whole process from beginning to end went smoothly with almost nothing needed from me. One was entirely installed over the weekend. I couldn't be happier with the systems which are producing enough energy to make my electric bill usage $0 some months. Saving money while offsetting carbon emissions never felt better. Having a healthy planet is not just important for future generations' physical health but also mental health.
4.64 1,488 Reviews
Latest review
Bradley Flynn, 16 hours ago
My wife and I both enjoyed the process from our first contact through installation. Every question was answered with no pressure to proceed with a next step. The Blue Raven Team worked with us on where and how we wanted our panels located as well as the conduit. They followed through with precision.
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Bradley Flynn, 16 hours ago
My wife and I both enjoyed the process from our first contact through installation. Every question was answered with no pressure to proceed with a next step. The Blue Raven Team worked with us on where and how we wanted our panels located as well as the conduit. They followed through with precision.
4.62 20 Reviews
Latest review
Jerry H.Z., 2 weeks ago
Gracias a Marcelo Hernandez y Pedro Oviedo por su esfuerzo, buen trabajo y excelente manejo en el proceso de nuestros sistema de Paneles solares con Tron Solar. Tan pronto mi sistema est� conectado con Duke Power estar� informando los detalles.<br /><br />Update: <br />Y� llevamos 7 meses con el sistema de paneles solares. Notar�n que quit� 2 estrellas y me explico. Aunque �stos sistemas trabajan bien, es importante que se aseguren que le instalen paneles solares en ambos lados de su techo para que eviten tener que pagar a la compa��a de energ�a (Duke's Power) dinero adicional. <br /><br />Durante la temporada de lluvia en la Florida tiende a llover despu�s del mediod�a casi todos los dias. S� solo tienen paneles en el lado suroeste como en mi caso, pierdes producci�n de energa por no tener paneles en el lado noreste. Pues los paneles solares producen energ�a en su m�xima capacidad cuando el sol est� directo a ellos. En mi caso, en la temporada de lluvia cuando el sol est� directo a los paneles solares, es cuando empieza a llover. Cuando eso pasa, los paneles no producen energ�a el�ctrica. Al no tener paneles solares en mi lado noroeste del techo, no hay compensaci�n de energ�a producida, porque no hay paneles solares en el lado opuesto de nuestro techo, donde el sol de toda la ma�ana est� m�s fuerte. <br /><br />Y� llevo pagando por 2 meses corridos $50 adicionales al pago de $112 mensuales del pago por financiar los paneles solares. Se supone que solo est� pagando $13 adicionales mensual a Duke's Power por el costo de estar conectado con ellos. Lo que los paneles solares acumulan de cr�dito en energ�a solar en la temporada regular, no es suficiente para compensar durante la temporada de lluvia con el resultado y� explicado.<br /><br />Yo saqu� cuenta y con 6 paneles adicionales en el lado opuesto a mi techo, resuelvo mi problema. Pero, le ped� a Pedro Oviedo de Tron Solar una cotizaci�n cash para los 6 paneles solares, pero a�n llevo y� varias semanas esperando y Tron Solar no me ha hecho la cotizaci�n. Mientras tanto, sigo esperando porque no es viable que otra compa��a lo haga, y� lo intent�. Seguir� pagado los platos rotos cometidos por el ingeniero que dise�� mis paneles solares de Tron Solar. Ojo!!!<br /><br />Google Translate: Thanks to Marcelo Hernandez and Pedro Oviedo for their effort, good work and excellent management in the process of our solar panel systems with Tron Solar. As soon as my system is connected to Duke Power it will be reporting the details. Update: And we have been with the solar panel system for 7 months. You will notice that I removed 2 stars and let me explain. Although these systems work well, it is important to ensure that you install solar panels on both sides of your roof to avoid having to pay the utility (Duke's Power) additional money. During the rainy season in Florida it tends to rain after noon almost every day. They only have panels on the southwest side as in my case, you lose energy production by not having panels on the northeast side. Well, solar panels produce energy at its maximum capacity when the sun is directly on them. In my case, in the rainy season when the sun is directly on the solar panels, it is when it starts to rain. When that happens, the panels do not produce electrical power. By not having solar panels on my northwest side of the roof, there is no energy offset produced, because there are no solar panels on the opposite side of our roof, where the all-morning sun is at its brightest. strong. And I have been paying for 2 consecutive months $ 50 additional to the payment of $ 112 per month of the payment to finance the solar panels. You're only supposed to be paying an additional $ 13 a month to Duke's Power for the cost of being connected to them. What solar panels accumulate credit in solar energy in the regular season, is not enough to compensate during the rainy season with the result and explained. I pulled out an account and with 6 additional panels on the side opposite my roof, I solved my problem. But, I asked Pedro Oviedo from Tron Solar for a cash quote for the 6 solar panels, but I've still been waiting for several weeks and Tron Solar has not made me a quote. Meanwhile, I keep waiting because it is not feasible for another company to do it, and I tried. I will continue to pay for the broken dishes committed by the engineer who designed my Tron Solar solar panels. Eye!!!
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Latest review
Jerry H.Z., 2 weeks ago
Gracias a Marcelo Hernandez y Pedro Oviedo por su esfuerzo, buen trabajo y excelente manejo en el proceso de nuestros sistema de Paneles solares con Tron Solar. Tan pronto mi sistema est� conectado con Duke Power estar� informando los detalles.<br /><br />Update: <br />Y� llevamos 7 meses con el sistema de paneles solares. Notar�n que quit� 2 estrellas y me explico. Aunque �stos sistemas trabajan bien, es importante que se aseguren que le instalen paneles solares en ambos lados de su techo para que eviten tener que pagar a la compa��a de energ�a (Duke's Power) dinero adicional. <br /><br />Durante la temporada de lluvia en la Florida tiende a llover despu�s del mediod�a casi todos los dias. S� solo tienen paneles en el lado suroeste como en mi caso, pierdes producci�n de energa por no tener paneles en el lado noreste. Pues los paneles solares producen energ�a en su m�xima capacidad cuando el sol est� directo a ellos. En mi caso, en la temporada de lluvia cuando el sol est� directo a los paneles solares, es cuando empieza a llover. Cuando eso pasa, los paneles no producen energ�a el�ctrica. Al no tener paneles solares en mi lado noroeste del techo, no hay compensaci�n de energ�a producida, porque no hay paneles solares en el lado opuesto de nuestro techo, donde el sol de toda la ma�ana est� m�s fuerte. <br /><br />Y� llevo pagando por 2 meses corridos $50 adicionales al pago de $112 mensuales del pago por financiar los paneles solares. Se supone que solo est� pagando $13 adicionales mensual a Duke's Power por el costo de estar conectado con ellos. Lo que los paneles solares acumulan de cr�dito en energ�a solar en la temporada regular, no es suficiente para compensar durante la temporada de lluvia con el resultado y� explicado.<br /><br />Yo saqu� cuenta y con 6 paneles adicionales en el lado opuesto a mi techo, resuelvo mi problema. Pero, le ped� a Pedro Oviedo de Tron Solar una cotizaci�n cash para los 6 paneles solares, pero a�n llevo y� varias semanas esperando y Tron Solar no me ha hecho la cotizaci�n. Mientras tanto, sigo esperando porque no es viable que otra compa��a lo haga, y� lo intent�. Seguir� pagado los platos rotos cometidos por el ingeniero que dise�� mis paneles solares de Tron Solar. Ojo!!!<br /><br />Google Translate: Thanks to Marcelo Hernandez and Pedro Oviedo for their effort, good work and excellent management in the process of our solar panel systems with Tron Solar. As soon as my system is connected to Duke Power it will be reporting the details. Update: And we have been with the solar panel system for 7 months. You will notice that I removed 2 stars and let me explain. Although these systems work well, it is important to ensure that you install solar panels on both sides of your roof to avoid having to pay the utility (Duke's Power) additional money. During the rainy season in Florida it tends to rain after noon almost every day. They only have panels on the southwest side as in my case, you lose energy production by not having panels on the northeast side. Well, solar panels produce energy at its maximum capacity when the sun is directly on them. In my case, in the rainy season when the sun is directly on the solar panels, it is when it starts to rain. When that happens, the panels do not produce electrical power. By not having solar panels on my northwest side of the roof, there is no energy offset produced, because there are no solar panels on the opposite side of our roof, where the all-morning sun is at its brightest. strong. And I have been paying for 2 consecutive months $ 50 additional to the payment of $ 112 per month of the payment to finance the solar panels. You're only supposed to be paying an additional $ 13 a month to Duke's Power for the cost of being connected to them. What solar panels accumulate credit in solar energy in the regular season, is not enough to compensate during the rainy season with the result and explained. I pulled out an account and with 6 additional panels on the side opposite my roof, I solved my problem. But, I asked Pedro Oviedo from Tron Solar for a cash quote for the 6 solar panels, but I've still been waiting for several weeks and Tron Solar has not made me a quote. Meanwhile, I keep waiting because it is not feasible for another company to do it, and I tried. I will continue to pay for the broken dishes committed by the engineer who designed my Tron Solar solar panels. Eye!!!
4.56 12 Reviews
Latest review
Jesse A, over 1 month
I came across Solar Power Midwest by chance. Since I first met Dave I knew he was an honest, down to earth guy! They took care of everything you could think of all I had to do was eSign a few things here and there. They streamlined every step of the process! Thanks Dave and the Solar Power Midwest team for helping me invest in a better future for my children.
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Jesse A, over 1 month
I came across Solar Power Midwest by chance. Since I first met Dave I knew he was an honest, down to earth guy! They took care of everything you could think of all I had to do was eSign a few things here and there. They streamlined every step of the process! Thanks Dave and the Solar Power Midwest team for helping me invest in a better future for my children.
4.54 25 Reviews
Latest review
Brent, over 1 month
Great price Great product Great service Great people
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Brent, over 1 month
Great price Great product Great service Great people
4.49 43 Reviews
Latest review
RTV, over 1 month
We have solar panels for our farming operation and greatly enjoy the benefits of clean energy.
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RTV, over 1 month
We have solar panels for our farming operation and greatly enjoy the benefits of clean energy.
4.42 22 Reviews
Latest review
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!
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Latest review
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!
4.25 5 Reviews
Latest review
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.
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Latest review
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.
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