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.
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Prices based on a 10.8kW system, after 26% federal tax credit
47 solar companies in Illinois provide pricing on SolarReviews. Here are the best rated companies near you.
4.78 56 Reviews
Satisfied customer, 2 days ago
My initial conversations with Jennifer and her subsequent help with explaining every detail to our satisfaction convinced us to get the system.
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Satisfied customer, 2 days ago
My initial conversations with Jennifer and her subsequent help with explaining every detail to our satisfaction convinced us to get the system.
4.73 142 Reviews
Lindsey, 1 week ago
Overall a good experience. Communication could have been a little better during the project. My panels are working great! Can't wait to see my Xcel bill go way down. Brenda was a great salesperson and Lindsey was very helpful after my panels were installed.
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Lindsey, 1 week ago
Overall a good experience. Communication could have been a little better during the project. My panels are working great! Can't wait to see my Xcel bill go way down. Brenda was a great salesperson and Lindsey was very helpful after my panels were installed.
4.64 36 Reviews
Veldman, 3 days ago
I met with 4 different companies with site evaluations with 3. AES is a local business. AES sales personnel were very knowledgeable answering all questions I presented. AES was very competitive in pricing that I had obtained. , The application process including fees to Ameren, installation, and scheduling of witness testing was all completed by AES.
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Veldman, 3 days ago
I met with 4 different companies with site evaluations with 3. AES is a local business. AES sales personnel were very knowledgeable answering all questions I presented. AES was very competitive in pricing that I had obtained. , The application process including fees to Ameren, installation, and scheduling of witness testing was all completed by AES.
4.63 15 Reviews
Joy Shaffer, over 1 month
I have had my panels just under a year. Everything is Great. The installation was quick, professional and efficient. The follow up on my questions has also been excellent since the installation of my system. I would highly recommend Tron Solar to anyone looking to install a solar system. No nightmares here.
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Joy Shaffer, over 1 month
I have had my panels just under a year. Everything is Great. The installation was quick, professional and efficient. The follow up on my questions has also been excellent since the installation of my system. I would highly recommend Tron Solar to anyone looking to install a solar system. No nightmares here.
4.59 1,055 Reviews
Tim, 3 hours ago
They were a great crew, all working together, efficient and knowledgeable
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Tim, 3 hours ago
They were a great crew, all working together, efficient and knowledgeable
4.51 22 Reviews
solar evangelist, over 1 month
What a joy to offer a testimonial for something I’m unequivocally passionate about - solar power and Tick Tock Energy! I’ve never written a product, restaurant, or lodging review. I figure grown-ups can assess for themselves and I’ve got other things to do with my time. But this is different. The stakes are way higher - our planet and working with a trustworthy company for a major expense. Jason was so good to work with. He answered my questions, responded to the research I had done comparing the various proposals I had received, and thoroughly explained SREC world. Lance and the install team were great when the big day came. Barb, at TT HQ, was equally helpful and easy to work with. They provided an informative owner’s manual. Craig has been a help to our local community solar group as we work to bring solar energy to those who can’t put it on their homes. Tick Tock has graciously and quickly tended to unexpected occurrences. Two years in and I’m more than satisfied with Tick Tock staff at every step in the process. I’ve got two thumbs up for clean solar energy and Tick Tock.
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solar evangelist, over 1 month
What a joy to offer a testimonial for something I’m unequivocally passionate about - solar power and Tick Tock Energy! I’ve never written a product, restaurant, or lodging review. I figure grown-ups can assess for themselves and I’ve got other things to do with my time. But this is different. The stakes are way higher - our planet and working with a trustworthy company for a major expense. Jason was so good to work with. He answered my questions, responded to the research I had done comparing the various proposals I had received, and thoroughly explained SREC world. Lance and the install team were great when the big day came. Barb, at TT HQ, was equally helpful and easy to work with. They provided an informative owner’s manual. Craig has been a help to our local community solar group as we work to bring solar energy to those who can’t put it on their homes. Tick Tock has graciously and quickly tended to unexpected occurrences. Two years in and I’m more than satisfied with Tick Tock staff at every step in the process. I’ve got two thumbs up for clean solar energy and Tick Tock.
4.42 155 Reviews
Anne., 3 weeks ago
Sunpro, and in particular Hector, made going solar, simple and painless. Hector thoroughly explained the whole process, and also ensured that he was present when it came time for the panel installation. He has made himself available at all hours of the day and night for any questions that I have had, and ensures that all my questions are answered. Hector is a kind man, and has excellent customer service skills. I truly appreciate Sunpro and Hector for such a wonderful experience.
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Anne., 3 weeks ago
Sunpro, and in particular Hector, made going solar, simple and painless. Hector thoroughly explained the whole process, and also ensured that he was present when it came time for the panel installation. He has made himself available at all hours of the day and night for any questions that I have had, and ensures that all my questions are answered. Hector is a kind man, and has excellent customer service skills. I truly appreciate Sunpro and Hector for such a wonderful experience.
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!
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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!
4.40 43 Reviews
Emily Riggan, 44 minutes ago
Think of all the good thing about a company and you're thinking about Moxie Solar. We could not be happier with them. EXCELLENT products, EXCELLENT people.
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Emily Riggan, 44 minutes ago
Think of all the good thing about a company and you're thinking about Moxie Solar. We could not be happier with them. EXCELLENT products, EXCELLENT people.
4.32 38 Reviews
Jennaver Brown, over 1 month
So the biggest fear you have when a group of guys drills 400 holes into your new roof is a leak right? We got one - and these guys jumped on it and stayed on it until they sourced the problem out. They were responsive, they were professional and they are reimbursing us for the small amount of ceiling damage that resulted. Leaks happen, its the service after the sale that separates the pros from the shmos. Kudos to Straight Up - From sales to installation to service, these folks have earned this 5 star review.
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Jennaver Brown, over 1 month
So the biggest fear you have when a group of guys drills 400 holes into your new roof is a leak right? We got one - and these guys jumped on it and stayed on it until they sourced the problem out. They were responsive, they were professional and they are reimbursing us for the small amount of ceiling damage that resulted. Leaks happen, its the service after the sale that separates the pros from the shmos. Kudos to Straight Up - From sales to installation to service, these folks have earned this 5 star review.
Ben Zientara
January 26, 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Ben Zientara
July 2, 2020
Across the US, several states have programs that provide free solar panels for low-income households.
Ben Zientara
January 21, 2019
A solar carve-out is a law that sets a specific goal for electricity generation from solar panels. Solar carve-outs in the United States often include incentives that reward solar owners for the energy their panels generate. The incentives can be worth th
Catherine Lane
March 5, 2021
Agrivoltaics combines solar with farmland to help farms save on their electricity bills and even produce more crops.
Ana Almerini
March 4, 2021
Adding solar panels to your boat will keep your battery charged and your appliances running, from a quick fishing trip to sailing an entire open ocean.