Illinois Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in Illinois?

The 30% federal Residential Clean Energy Credit is no longer available for systems placed in service after Dec. 31, 2025. Illinois residents may still be able to reduce costs through state programs and utility rebates. 

Solar for All

Illinois Solar for All is a state program that helps income-eligible households go solar. If you qualify, you can get solar installed with little to no upfront cost and lower your electric bills. In most cases, your household income needs to be at or below 80% of your area’s median income, and those limits are updated each year.

As of publishing, capacity has been filled for single-family and 2-to-4-unit residential projects. Some applicants may need to wait for additional funding. The Illinois Power Agency typically opens a new project submission window in early June.

Illinois Shines program

Illinois Shines provides incentives for solar projects through Renewable Energy Credits (RECs). In most cases, these incentives are handled by Approved Vendors and built into your overall project pricing or payment terms.

Because some customers were harmed when promised incentive payments were not passed through, Illinois Shines launched a Solar Restitution Program in 2025 to provide assistance in certain cases.

Ameren Illinois rebate

This rebate gives you money back for installing a “smart inverter,” which is a key piece of equipment that connects your solar panels or battery to the grid.

For residential customers, the rebate is generally $300 per kW of solar capacity and $300 per kWh of eligible battery storage capacity. Eligibility depends on the system and interconnection details, and replacement inverters alone are not eligible.

ComEd rebate

The ComEd solar rebate is an upfront cash incentive that helps lower the cost of installing solar panels. The amount you get is based on your system size — currently about $300 per kilowatt, which can add up to a few thousand dollars.

But it’s not just a free bonus. To qualify, you have to be enrolled in net metering. And if you take the rebate, you give up the most valuable version of net metering (full retail credits).

That means any extra electricity your panels send to the grid is worth less than it used to be, so your long-term savings may be lower.

It’s essentially a trade-off: You get money upfront to reduce your installation cost, but you earn less from your solar system over time.

What to know about net metering in Illinois

Net metering is one of the main ways solar helps lower your electric bills. Here is how it works: When your system produces more electricity than you use, that extra power goes to the grid, and you get bill credits in return. Those credits reduce what you owe later, like at night or during the winter when your panels aren’t producing as much.

Net metering rules are similar statewide, but the details depend on your utility.

In Illinois, customers with legacy status can still receive full retail credits, but newer systems generally receive lower-value credits than before 2025. That makes self-consuming your solar power — or pairing solar with battery storage — more valuable than it used to be.

Illinois’s alternate valuation rule

Illinois generally prevents a solar energy system from increasing your property tax assessment through an alternate valuation rule. If you file for alternate valuation, the assessor compares your property’s value with the solar system to the value it would have had with a conventional heating or cooling system and uses the lower value.

Additional solar incentives in Illinois

Check DSIRE for the most comprehensive source on solar incentives and policies in Illinois.

Solar panel costs in Illinois

Average solar panel costs in Illinois generally start between $15,346 and $30,691.  Prices in Chicago are comparable, ranging from $14,653 to $29,305.

System size is a big cost factor of going solar. A typical Illinois household needs about a 7.3 kW system, which costs $22,411 on average. Depending on your energy needs, you might need a smaller or larger system.

Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the system’s price.

Average solar panel costs by system size in Illinois

Federal mortgage financing options

Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like FHA or VA.

Types of Energy Efficient Mortgages

• FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings, and a home energy assessment is required first.
• VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
• Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.

Compare solar companies in Illinois

Working with a solar company in Illinois makes it easier to understand local incentives.

» RELATED: Top solar companies in Chicago

FAQ

Bottom line

The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in Illinois.

Solar costs vs. savings: Illinois and nearby states