Illinois Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Illinois homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $17,160 in Illinois, that's a direct tax credit of $5,148. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Illinois does not currently offer a state-level solar tax credit. However, Illinois homeowners still benefit from the substantial 30% federal ITC, worth $5,148 on a typical 6kW system. Additionally, Illinois Shines: upfront payments based on REC value (often $3,000-$8,000 for residential). Even without a state credit, solar is economically attractive in Illinois with electricity rates averaging 17.69¢/kWh — well above the national average.

Great news for Illinois homeowners: Solar energy systems are exempt from property tax assessments. Special assessment prevents property tax increases Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Illinois's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Illinois does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Full Retail Rate. Full retail rate net metering for eligible systems The current system size cap is 25 kW.

Illinois's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 17.69¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

Illinois Shines: upfront payments based on REC value (often $3,000-$8,000 for residential)

Utility rebates and state programs can change frequently. We recommend checking with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for the most current programs available in your area.

Illinois has a mandatory Renewable Portfolio Standard (RPS) target of 25% by 2026, 40% by 2030, 50% by 2040. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.