Hey there! Congratulations on taking the first step toward upgrading to solar energy. Going solar in Illinois can feel overwhelming given moderate electricity costs and sunlight levels.
But here’s the great news — between exploding solar growth, favorable policies, and financial incentives, now is an incredible time for you to unlock major savings.
In this comprehensive guide, I’ll break down everything you need to know to maximize value from installing solar panels in the Prairie State.
Why Illinois Homeowners Can Save Big with Solar
First, let‘s tackle the skepticisms holding many Illinois residents back from adopting solar — limited sunshine and grid electricity rates below the national average.
While fair concerns, they paint an incomplete picture. Technological improvements have made solar viable even with IL’s 1,600 average sun hours. And careful planning reveals $10,000+ lifetime financial savings.
Illinois Solar Energy Goals
The state aims to install nearly 5,700MW of solar capacity by 2025. That‘s enough to power 875,000 single-family homes!
The following chart illustrates the massive boom over the next 3 years:
| Year | New Solar Capacity |
|------|-------------------|
| 2022 | 1,000 MW |
| 2023 | 2,000 MW |
| 2024 | 1,500 MW |
| 2025 | 1,200 MW |This unprecedented growth demonstrates Illinois’ commitment to supporting renewable adoption through policy and financial incentives — great news for you!
Let‘s examine each opportunity to save…
1. Federal Solar Investment Tax Credit
The federal solar tax credit (ITC) offers the most lucrative savings opportunity across all states.
How It Works
- Provides 26% back as a credit on your income taxes
- No limit — calculated as 26% of total system cost
- Remains at 26% until 2024, then steps down incrementally
- Carry forward any unused credit to future tax years
For example, on a $15,000 solar installation:
System Cost: $15,000
ITC Percentage: 26%
Total Tax Credit = $15,000 * 0.26 = $3,900That‘s $3,900 you could potentially save right off the bat!
When combined with additional Illinois incentives outlined below, the ITC delivers tremendous value.
And unlike state programs which may change, the ITC is federally guaranteed through 2034.
2. Illinois Net Metering Policies
Net metering laws regulate bill credits solar owners receive for sharing excess electricity to the grid. This provides additional savings over time.
Illinois requires favorable retail rate net metering:
- Your system offsets real-time home usage
- Surplus solar gets fed into the grid
- The utility purchases excess at full retail electricity rates
Monthly Billing
- A credit builds for your net excess solar generation
- Rolls month-to-month during annual billing cycle
- At year-end, unused credits expire
While credits eventually expire, net metering still maximizes ROI by effectively selling your solar surplus at premium retail prices.
For example:
- 6 kW system with 8,500 kWh annual solar output
- Home consuming 6,500 kWh
- 2,000 kWh excess sold back at $0.14 = $280 in annual bill credits
3. Illinois Property Tax Assessments
Many counties provide solar-friendly property tax valuations or exemptions.
For example, Cook County reduces assessed value by $10 per square foot of solar panels. Over 25 years, this avoids >$7,000 in taxes on a typical 6,000 square foot residential system.
Exact solar tax policies vary greatly at the local level:
| County | Solar Property Tax Policy |
|----------|---------------------------|
| Cook | $10 per sq ft reduction |
| Dupage | 30% assessment reduction |
| McHenry | Limited appraisal increase|Check with your county assessor to uncover savings specific to your jurisdiction.
4. Illinois Adjustable Block Program
The Illinois Adjustable Block Program (ABP) drives down installation costs through performance-based incentives.
How You Save
- Earn income selling expected solar renewable energy credits (SRECs)
- Claim ~$64 per anticipated SREC over next 15 years
- Apply proceeds directly to your system price
An average 6 kW installation would qualify for 110 SRECs x $64 = $7,040.
In essence, Illinois pays you to generate cleaner energy!
Bundled with the ITC, ABP delivers tremendous subsidy.
Federal & State Incentives in Tandem
The combined savings potential from stacking the ITC, net metering, property tax breaks, and ABP is immense:
INCENTIVE | SAVINGS | DETAILS
--------------------|-------------|---------------------
Federal Solar Tax Credit | $3,900 | 26% of $15,000 system
IL Net Metering | $4,200 | $280 annually for 15 years
Property Tax Reduction | $7,000 | Over system lifetime
IL Adjustable Block Payment | $7,040 | Performance incentives
------------------- | ------------|-------------------------
TOTAL SAVINGS | $22,140 | Over first 15 yearsSignificant savings for you even with IL’s solar limitations!
Buy vs. Lease: What‘s Best for Illinois Homeowners?
You‘re faced with another big decision — buy solar panels outright or lease from a provider?
Solar Leases
- $0 or low upfront costs
- Pre-set monthly payments
- Maintenance/monitoring included
- No ownership stake
Pros
- Pay little to nothing initially
- Low fixed monthly bills
- System upkeep handled
Cons
- Forfeit state/federal incentives
- No long-term ownership asset
- Difficult exit terms
Buying Systems Outright
- Higher upfront investment
- You retain ownership rights
Pros
- Maximizes Illinois/federal incentives
- Builds home equity
- You own the asset outright
Cons
- Higher initial purchase cost
- You handle maintenance
When focused on optimizing savings in Illinois specifically, buying tends to make the most financial sense. But carefully consider which model aligns better given your budget and priorities.
Key Takeaways
I know that was an information download! Let me summarize the main insights:
- Illinois‘ exploding solar growth and favorable policy incentives make now the time to go solar
- Federal tax credit plus state programs create $20,000+ lifetime savings potential
- Carefully weigh buying outright vs leasing based on your goals
- Lock in savings by moving ahead soon before incentives decline
Hopefully this guide has shown that with proper planning, you too can unlock major solar savings despite Illinois’ limitations.
For additional help evaluating solar options tailored to your home, contact me today for a free consultation!
