All Energy Solar

Exploring Current Solar Incentives for Illinoisans

The state of Illinois is dedicated to expanding clean energy through various incentives that make solar power more accessible and affordable for homeowners and businesses. These incentives not only help reduce energy costs but also support the state’s goal of achieving 100% clean energy by 2050. Let’s take a closer look at some of the incentives that make solar in Illinois make more sense than ever.

Illinois Shines

Illinois Shines, also known as the Adjustable Block Program, is a widely recognized incentive across most of Illinois. This program primarily draws its incentives from the sale of Solar Renewable Energy Credits (SRECs). These credits are traded in a marketplace where entities purchase them to offset their carbon emissions. The owner of the solar system generates energy and is compensated by “selling” these credits to utility companies, helping them comply with state-mandated renewable energy targets.

Homeowners who install or have already installed solar systems can register with Illinois Shines to receive payments for their SRECs. System owners receive 80% of their payment upfront once the system is operational. After 15 years, they receive the remaining payment, provided the system meets its expected energy production. Credits are awarded for every 1,000 kWh of electricity generated during the payback period, with the exact credit amount depending on the timing and the block your system qualifies for. Blocks are determined by factors such as the system’s size, production capacity, utility provider, and the program year.

Solar for all in Illinois

Illinois Solar for All is a program by the state of Illinois that allows income-eligible homeowners, renters, non-profit organizations, and public facilities to pay no upfront costs for a solar installation or subscription. Participants in the program can save money on electric bills—an average of more than $1000 per year—while helping create a clean energy future. You may be eligible for ILSFA if your household income is 80% or less of the Area Median Income.

Illinois sales and property tax exemptions

New installed solar systems in Illinois are exempt from sales tax by state law, helping to make panel installations more affordable. There are also property tax exemptions for new solar installations in the state. Unlike other home improvements that increase the value of your property, like solar, Illinois has a statute in place that prohibits photovoltaic devices (such as solar panels) from being included in property tax assessments.

Federal solar tax credit

In addition to Illinois’s state incentives, the federal government also provides a substantial tax credit for property owners who install solar PV systems. The Investment Tax Credit (ITC) offers a 30% tax credit on the total installation cost of solar panels for eligible properties, as long as the system is installed before the end of 2032. Starting in 2033, the federal tax credit will reduce to 26%, and in 2034, it will further decrease to 22%, with the credit set to expire for residential projects after that year. 

If you want to explore the financial benefits of installing solar, consult with a qualified solar installer who can guide you through available incentive programs.

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