Best Solar Companies in Chicago

In our experience, the best solar companies have a few things in common: local experience, reliable equipment and transparent contracts. Here are our tips to verify solar companies. The City of Chicago’s Solar Contractor Checklist is another great resource.

• Check certifications: Use the Illinois Commerce Commission database to verify a company’s state-required Distributed Generation Installer certification. The Illinois Solar Energy Association (ISEA) has a list of certified installers and vendors that mean certain standards for professional conduct. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• Read reviews: Research the company's track record and read reviews. Look out for red flags — complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews. Companies with plenty of experience installing solar panels in Chicago are better at navigating the local regulations, permits and available financial incentives.
• Ask questions: Consider whether you want a solar storage battery, electric vehicle (EV) charger or critter guards. Then, carefully review proposals and financials, understand legal considerations and ask about maintenance before signing an agreement. If you don’t understand something about the payment terms, warranty or ongoing services, ask for clarification.

Solar panels last a long time, so you want to hire a well-established company that will continue to provide system support for at least 25 years.

» TIPS: Get the best solar quotes

As of publishing, going solar in Chicago tends to be a little cheaper than in the rest of the state. Average solar panel costs in Illinois typically range between $10,745 to $30,700, depending on the size of your system and what financial incentives you qualify for.

The size of your solar panel system is a big factor in your total cost. A typical Illinois household needs a system with a capacity of 10.12 kW to offset enough energy costs to make solar viable. You might need a smaller or larger system, depending on your household energy usage.

Average solar panel cost by system size in Chicago

Solar panels are generally worth it in Chicago if you like the idea of lowering your monthly utility bills. The main drawback is the high upfront cost of purchasing and installing the panels and equipment.

“Going solar has saved my life,” Valerie in Chicago told us. “My last bill went from 200-and-some dollars to $40.” Many other solar customers agree it’s worth it for the cost savings. Ronald in Chicago cut his electricity bill in half, and Colleen in Chicago saves $30 to $50 each month.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Think of going solar in terms of your monthly costs. Given rising energy costs in Chicago and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

But it doesn’t work out for everyone. Use the Nation Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

As long as your house is a good candidate for solar, it’s at least worth considering. On average, homeowners with solar panels can avoid $57,382 in total utility costs over 25 years.

» STILL NOT SURE? Solar energy pros and cons

Getting solar panels is similar to buying a car. You could pay cash, but many people finance their system through solar loans. Similarly, leasing solar equipment is an attractive option for people who don’t want to get a loan or be responsible for maintaining a system.

• Solar loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leasing options: You get to use the panels but don’t own them. Solar leases can be good if you have limited savings. Agreements typically last 20 to 25 years.
• Power purchase agreements: Similar to leasing, a power purchase agreement (PPA) lets you get the benefits of solar without actually owning the equipment. PPAs are available through the Illinois Shines program. However, the compounding nature of annual increases in the PPA price could lead to higher-than-expected costs over time, according to the sample disclosure form.
• Home equity loans or lines of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system. These often have variable interest rates, meaning monthly payments can increase over time.

» SOLAR PANELS: Lease vs. buy

Going solar in Cook County

You (or your contractor) must check zoning and permitting guidelines, complete necessary applications and get approval from ComEd to install solar panels in Chicago. After obtaining permits and interconnection approval, the installation can begin. A final electrical inspection must be passed before the system is activated.

Several Illinois solar incentives help support the state’s goal to generate 25% of its energy from renewable sources by 2025, with solar contributing 6%. Recent legislation increased this target to 40% by 2030 and 50% by 2040.

• Illinois Shines: The Illinois Shines program is beneficial for low-income households. It's responsible for more than 85,000 solar projects.
• Illinois Solar for All: The Illinois Solar for All program offers financial support to underserved communities, covering all upfront costs and significantly reducing energy bills. For a family of four living in Cook County, Illinois, a household income at or below $83,350 qualifies for the Illinois Solar for All program.
• Green Recovery: Chicago’s Green Recovery Agenda supports solar energy adoption by expediting permits, reducing fees for solar installations and providing financial incentives for homeowners.
• Solar rebate: A state program passed in 2021 offers a rebate of nearly one-third of the cost of system installation on top of federal incentives.

Federal tax credit

The federal solar investment tax credit (ITC) is the best financial incentive for many homeowners in Chicago. It reduces your federal tax liability by 30% of how much it costs to install solar panels.

The ITC drops to 26% in 2033 and then 22% in 2034.

Don’t get confused: The ITC is a credit, meaning it directly decreases the amount of taxes you owe. This is different from a deduction, which lowers your taxable income.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If, in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.

Additional solar incentives in Chicago

Check DSIRE for the most comprehensive source of information about solar incentives and policies in Illinois.

What to know about net metering in Chicago

Net metering is a system of give-and-take between you and your utility company. It lets you access power from the grid when your panels don’t generate enough electricity.

You also earn credits for sending any excess solar energy to the grid. These credits can then be used to offset your electricity bill when your solar panels are not producing enough energy.

In Chicago, ComEd, Ameren and MidAmerican Energy customers can benefit from net metering. On average, a 7-kilowatt (kW) solar system generates about 7,665 kilowatt-hours (kWH) to 11,498 kWh per year in Illinois. For 2024 and 2025, REC prices for an average residential 7-kW solar system are $73.71 to $83.87. So, the average Illinois homeowner could earn an estimated $564 to $964 per year.

» GREENEST STATES: Illinois ranked No. 34 in 2024

Homeowners installing solar panel systems must comply with zoning regulations. For instance, roof-mounted systems cannot exceed the roof’s perimeter, while freestanding systems are not allowed in residential districts. Additional permits are required for installations in landmark districts or that extend into public ways.

The City of Chicago offers a Solar Express Permit program that streamlines the permitting process for residential solar installations. To secure a permit, residents must submit an application through the city’s online permit portal, providing detailed plans of the solar installation.

Residents can apply on the city’s online permit portal, and most small installations (homes) qualify for the Easy Permit Process, which does not require full plan review and can be issued quickly. Fee waivers are available for qualifying projects.