Illinois Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in Illinois?

Yes, Illinois has several programs that can help make solar more affordable. The main options include Illinois Shines, Illinois Solar for All and rebates from Ameren Illinois and ComEd.

Illinois Shines

Illinois Shines is a statewide program that provides financial incentives for qualifying solar projects through Renewable Energy Credits, or RECs.

Think of a REC as a certificate representing the clean-energy benefits of the electricity your solar panels produce. Illinois utilities buy these credits to help meet the state’s renewable energy goals.

Homeowners generally don’t sell the RECs themselves. Instead, an Approved Vendor handles the incentive. Depending on your contract, you may receive the value as a lower solar price, a payment or another financial benefit.

Illinois Shines also has a Solar Restitution Program for certain customers who were promised a share of the Illinois Shines REC incentive by an Approved Vendor but did not receive some or all of the promised payment. Eligibility requirements and payment limits apply.

Pro tip

Ask your installer how much Illinois Shines incentive value you’re receiving and exactly how it will show up in your contract.

Illinois Solar for All

Illinois Solar for All helps income-qualified households get access to solar at a lower cost while providing energy savings.

Eligible homeowners may be able to install solar panels on their property. Renters and households without a suitable roof may be able to participate through community solar instead.

Income limits and other eligibility requirements apply, and funding can be limited.

Ameren Illinois rebate

Ameren Illinois offers rebates for qualifying residential solar and battery systems. Eligible residential customers can generally get:

• Solar: $300 per kilowatt (kW) of eligible system capacity
• Battery storage: $300 per kilowatt-hour (kWh) of eligible storage capacity

Your system must meet Ameren’s equipment and interconnection requirements, including the use of a qualifying smart inverter. Replacing an existing inverter by itself doesn’t qualify for another rebate.

There is an additional requirement for some battery owners. Customers whose qualifying energy storage rebates fall under rules effective on or after June 1, 2026, must participate in Ameren’s Scheduled Dispatch Virtual Power Plant once the program is operational. The program requires participating batteries to operate according to scheduled dispatch requirements at certain times to help support the electric grid.

ComEd rebate

ComEd offers rebates for qualifying residential solar and battery systems. Eligible residential customers can generally receive:

• Solar: $300 per kW of eligible system capacity
• Battery storage: $300 per kWh of eligible storage capacity

A qualifying smart inverter is required. If you get a battery storage rebate, you must also enroll in an eligible ComEd program and participate in ComEd’s virtual power plant program. This program lets ComEd use participating batteries at certain times to help support the electric grid. ComEd expects the virtual power plant program to begin March 1, 2027.

Did you know?

On average, Illinois homeowners with solar panels avoid $57,382 in total utility costs over 25 years.

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 vary somewhat by utility.

In Illinois, residential solar customers who qualified for net metering by the end of 2024 may be grandfathered into the older full-retail-rate net metering program for the life of their system.

Customers who begin net metering in 2025 or later receive less-generous credits. Their excess generation can offset eligible electricity supply-related charges, but not utility delivery charges. That makes using more of your solar power as it is produced — or storing it in a battery for later use — more valuable than it was under full-retail net metering.

Illinois’s alternate valuation rule

Illinois allows property owners with qualifying solar energy systems to claim an alternate property-tax valuation that can prevent the solar installation from increasing the property’s assessed value. To claim it, you must file with your county’s chief assessment officer. The assessor compares the value of the improvements with the solar system to their value using a conventional heating or cooling system and applies the lower value.

Community solar in Illinois

You don’t need panels on your roof to benefit from solar in Illinois.

Prices, savings and contract terms vary by provider.

With community solar, you subscribe to a share of an off-site solar project instead of installing a system at home. You then receive credits on your electric bill based on your share of the electricity the project produces.

This can be a good option if you rent, live in a condo or have a roof that isn’t suitable for solar panels. Illinois Shines supports community solar projects serving customers in areas including ComEd and Ameren Illinois territory.

Solar panel costs in Illinois

Average solar panel costs in Illinois generally start between $14,900 and $29,800. Prices in Chicago are comparable, ranging from $15,150 to $30,300.

System size is a big cost factor of going solar. A typical Illinois household needs about a 11.56 kW system, which costs $34,449  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

How can I pay for solar panels?

Going solar is like buying a car. You could pay cash, but a lot of people finance or lease with minimal upfront costs.

• Solar loans work like any other home improvement loan. You pay it back over time (with interest) each month.
• Leasing solar panels lets you set up a system without high upfront costs. A solar company installs and maintains the panels on your property, and you pay a monthly fee to use them.

Federal mortgage options for solar panels

Some federal mortgage programs let eligible borrowers include solar panels or other energy upgrades in a home purchase or refinance loan. Rules vary by lender.

• FHA Energy Efficient Mortgage: Finance cost-effective energy upgrades through an FHA-insured mortgage. A home energy assessment is required, and expected savings must cover the upgrade cost. Separate FHA rules apply to solar and wind systems.
• VA Energy Efficient Mortgage: Eligible VA borrowers can add up to $6,000 for approved energy upgrades. For costs over $3,000, projected monthly savings must exceed the added mortgage payment.

» SOLAR PANELS: Lease vs. buy

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.

Solar costs vs. savings: Illinois and nearby states