Did you know that Illinois has a surprising amount of solar power incentives and rebates available? On top of Federal Incentives, Illinois offers several state incentives that can save you money!
There are options for most people across the state, from local initiatives to statewide programs. Stellar Solar is operating across the prairie state, and has many options for homeowners who want to take control of the energy future, particularly when utility costs are constantly rising!
Check out the six solar incentives in Illinois that you need to know about:
For residents of Illinois considering solar installation, it’s important to note that the Federal Solar Investment Tax Credit (ITC) offers significant financial benefits. This credit allows homeowners who own their solar systems outright or have purchased them through a loan to claim a credit equal to 30% of their solar installation costs on their federal taxes.
However, keep in mind that customers who choose to lease their system or opt for a Power Purchase Agreement (PPA) are not eligible, as these models imply third-party ownership. Furthermore, the Residential Clean Energy Credit, a federal tax incentive, provides a reimbursement amounting to 30% of the solar system’s cost. This translates into about $7,200 in potential tax savings based on the national average cost for an 8 kW solar array.
Net metering provides solar customers with the opportunity to sell surplus energy generated by their solar systems back to the grid. In return, they receive credits on their electric bills, which can be utilized to offset future electricity consumption (during periods when their solar systems may not produce sufficient power).
In Illinois, 220 ILCS 5/16-107.5 requires utilities such as Commonwealth Edison, Ameren Illinois, and MidAmerican Energy to offer one-to-one net metering. Net metering enables residents and businesses with renewable energy generators, such as solar or wind systems, to sell excess electricity back to utilities. This applies to customers of ComEd, Ameren, and MidAmerican. Eligible generators (up to 2,000 kW) include solar, wind, crops for electricity, anaerobic digestion, fuel cells, microturbines, and hydroelectric energy.
The net metering law mandates one-to-one crediting, meaning you receive the same rate for the electricity you contribute as the rate you are charged. Illinois net metering allows for seamless integration of renewable energy systems, offering financial benefits through one-to-one crediting and credit rollovers.
Eligibility requirements vary by utility, but Stellar Solar helps our customers on everything they need to know about net metering, and we fill out an application on your behalf.
The Illinois Solar for All (ILSFA) initiative is a comprehensive suite of programs designed to empower low-income residents and support nonprofit organizations. Through ILFSA, qualifying low-income households are afforded the opportunity to engage with community solar initiatives or procure solar panel installations at substantially reduced costs. In other words, solar installations at affordable or zero upfront costs for income-eligible homeowners and organizations.
This innovative program is facilitated by strategic alliances with certified vendors who are compensated with Renewable Energy Credits (RECs) for their contributions. These accredited vendors are then able to market the RECs for financial gain, which enables them to extend significant savings to homeowners, effectively removing the barrier of initial investment and ensuring sustained reductions in energy expenses.
ILSFA’s offerings are categorized into three distinct programs:
For more detailed information regarding program specifics and to check your eligibility, check out the official Illinois Solar for All website. Stellar Solar is not currently a vendor of this program but can nonetheless aid Michiganders of all income levels to https://stellarsolarmichigan.com/go solar in Michigan!
Illinois Shines incentivizes solar projects with the purchase of RECs from Distributed Generation projects. An approved vendor (solar installer) is the owner of these RECs. While Stellar Solar is currently not a vendor, we nonetheless can help people seeking to go solar.
Illinois is one of the few states to offer incentives for solar energy generation through Solar Renewable Energy Credits (SRECs). This program garnered such interest that it previously exhausted its funds, leading to a temporary suspension of new applications until its revitalization in December 2021, thanks to the Climate and Equitable Jobs Act!
The workings of the program are:
Illinois utility companies are working towards fulfilling the state’s Renewable Portfolio Standards, obliging them to source at least 40% of their electricity from renewable means by the year 2030. Purchasing SRECs from residential solar producers is a strategic method for these companies to meet the objectives.
Demand for participation in the Adjustable Block Program continues to be high, which has led to the creation of a waitlist system. For further details and to explore the possibility of joining the program, please refer to the official Illinois Shines website.
Installation of a solar system greatly increases the value of a home! However, the state of llinois does not want the added tax burden associated with rising property values to negatively influence a homeowners’ decision to go solar.
As such, ILCS 200/10-5, allows for a tax exception proportional to the value of renewable energy equipment. In short, installing solar doesn’t increase your tax burden! Homeowners wishing to take advantage of the exemption must simply fill out the State of Illinois PTAX-330.
This calculation can potentially lower the property’s tax burden. As an example, the financial benefit can amount to around $497 per year, although this can fluctuate depending on the property’s value, the cost of the solar installation, and specific local tax rates.
Commonwealth Edison Co., (also known as ComEd), offers an initiative to help customers adopt renewable energy with this incentive. The ComEd Distributed Generation Rebate program is designed to encourage its customers to invest in the installation of solar panels and energy storage devices by providing monetary rebates.
Regardless of the type of property you own, if you’re a ComEd customer you utilize these rebate initiatives which are structured based on kilowatt capacity. For eligible solar systems, ComEd clients can receive up to $300 per kilowatt of system capacity. This can make a significant difference in the overall investment required for installing a solar system.
In addition to the incentives for solar system installation, ComEd also encourages the implementation of energy storage devices which are critical for optimizing the use of solar energy. They offer a rebate of up to $300 per kilowatt of system capacity for eligible energy storage devices. These tools not only secure reliable energy for homeowners, but can also lessen your dependence on grid power.
If you are looking to get a residential solar installation in Illinois, Stellar Solar is your best bet. We’ve been in business since 1998, and are one of America’s most trusted solar energy brands.
We have expertise in rooftop and ground mount solar installations, coupled with battery storage solutions for residences and businesses. With diverse backgrounds ranging from union surveyors to electrical engineers, we bring a wealth of insight into the work ethic that defines Illinois. We understand the intricacies and challenges of solar implementation across urban, suburban, and rural landscapes.
Our commitment to providing informed, pressure-free guidance ensures your satisfaction throughout the entire process, from initial consultation to installation, activation, and monitoring of your solar investment. Go solar in Illinois with Stellar Solar today!
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