Solar energy is gaining popularity in Illinois and for good reason. Photovoltaic (PV) solar is the cheapest form of new electricity in the world, and Illinois offers some of the most valuable solar incentives to make installations even more cost-effective.
If you’re considering solar and live in Chicago, Springfield, Rockford, Peoria, Champaign, or elsewhere in the Prairie State, this guide details all the available Illinois solar credits, rebates, and incentives.
Savings through Illinois solar credits, rebates, and incentives
Illinois offers some of the best state-level solar programs in the country to incentivize local residential green energy adoption. Before you go solar, it’s very important to look for solar incentives in Illinois through the federal government, your city or county, as well as your electric utility to maximize your savings.
Illinois Shines: Solar renewable energy credits
Since 2017, the Illinois Shines program from the Illinois Power Agency (IPA) has helped over 40,000 residential solar projects become more affordable in the Land of Lincoln. Today, the program helps local homeowners save an average of $7,000.
Through Illinois Shines, you can earn Solar Renewable Energy Credits (SREC) based on the amount of electricity your system is expected to generate over 15 years. When you go solar, your utility will purchase these credits in a one-time payment completed approximately one year after your installation, at a rate set by the IPA.
To illustrate with an example, the National Renewable Energy Laboratory's PVWatts Calculator estimates that an 8.5 kW solar system will produce approximately 11,339 kWh per year installed in Manhattan, Illinois. At the Commonwealth Edison (ComEd) rate of 7.1 cents/kWh, you could then earn an SREC payment worth up to $12,076 ($0.071 x 11,339 kWh x 15 years) after you go solar with an approved vendor, designee, or subcontractor.
Illinois Solar for All: Guaranteed savings for low-income households
If you earn 80% or less of the median annual income in your area, you may qualify for the Illinois Solar for All (ILSFA) program, which is also sponsored by the IPA. Created in 2016, ILSFA offers income-eligible Illinois residents the opportunity to go solar with no upfront costs and guaranteed savings on energy bills. While working with an approved vendor, the ILSFA program is open to eligible property owners as well as renters, with on-site installations and community solar opportunities available.
Illinois utilities: Distributed Generation rebates
ComEd and Ameren customers in Illinois can receive Distributed Generation rebates for installing smart solar inverter systems. In 2024, ComEd offers a $300/kW rebate for solar generation capacity installed and an additional $450/per kWh rebate for solar paired with storage (SPWS). As a ComEd customer, you could therefore earn a DG rebate worth $2,550 for your 8.5 kW solar energy system and an additional $1,512 rebate for a 3.36 kWh battery.
How does net metering work in Illinois?
Net metering programs enable solar savings on utility power bills, and many states—like California, New York, and Illinois—are moving away from traditional solar billing structures. While existing net metering customers are grandfathered in, Illinois residents who go solar after January 1, 2025 will be enrolled in a new program, like NEM 3.0, with reduced bill credit values for solar electricity shared with the grid. For this reason, homeowners in Illinois going solar should strongly consider adding a battery backup system for increased self-consumption of the electricity produced on-site.
Discover your solar savings in Illinois
In analyzing all the Illinois solar, rebates, and incentives, it’s clear there is a tremendous amount of savings available today. For perspective, let’s recount all the potential savings in the example we’ve illustrated throughout this guide. With a $33,000 investment, your 8.5 kW solar energy system with a 3.46 kWh storage battery may qualify for the following rebates:
- SRECs: $12,076 payment for the electricity your system will generate
- DG rebates: $2,550 rebate for your panels and $1,512 for your battery storage
Adding it up, the net investment in your $33,000 energy system would then be more like $16,862 after applying these solar incentives: $12,076 + $2,550 + $1,512 =$16138. With this knowledge, your eligibility for these incentives can significantly impact your solar return on investment in Illinois.
Conclusion
By taking advantage of Illinois' robust, rebates, and incentives, you can make a substantial impact on the cost of your solar installation and accelerate your return on investment. To ensure you fully benefit from programs like Illinois Shines, ILSFA, and Distributed Generation rebates, consult a qualified solar installer who understands Illinois’ solar incentives.
As savings always depend on the unique details of your property, energy demand, and installation, Enphase recommends a personalized assessment from a local solar professional to see how much you can save with solar. They can guide you through the process, help you select the right options for your needs, and maximize your savings. Begin your journey toward cleaner, more affordable energy today—explore your solar options and see how much you could save.
Illinois solar and incentives FAQs
No, there are no existing, legitimate free solar panel programs in Illinois. Instead, there are many solar financing options available that do not require an upfront payment, as well as many local incentives and programs to help reduce your net investment costs and increase your long-term savings.
Yes, if your home has solar potential, an installation in Illinois is likely worth it to save money on your ongoing electricity costs. With local incentives, you can significantly reduce your investment in solar and enjoy 25 years of electricity generation and utility bill savings.
Yes, solar panels are exempt from property taxes in Illinois. While the Prairie State has some of the highest property taxes in the country, the value of your solar energy system will not increase your property tax liability, so as not to discourage clean electricity adoption. On the other hand, solar can increase property value if you decide to sell your home in the right circumstances.
LEGAL NOTICE: (c) 2025 Enphase Energy, Inc. All rights reserved. This information is based upon various rules and regulations currently in effect and information available as of 2025. Such rules and regulations are complex and often change, and results may be different based on particular facts and circumstances. The information herein is general in nature and may not apply to your circumstances, and Enphase is not in a position to assure any particular result. You should seek appropriate professional advice as to how these rules and regulations apply to your situation. Enphase assumes no obligation to update this article in light of new information or on future events.
