Illinois Solar Incentives 2024: Tax Credits, SRECs & More

Are you ready to go solar in Illinois?

If so, you’ve made a smart decision. Switching to solar can help lower or eliminate your electricity bills — a massive perk, considering the average electricity bill in the U.S. is over $1,600 a year. With the wide range of Illinois solar incentives 2024 available, there has never been a better time for Prairie State residents to make the switch.

Solar energy is renewable and among the cleanest energy sources available. By choosing solar power instead of fossil fuel-based electricity, you can do your part in tackling global warming while also improving your home’s energy efficiency.

Plus, if you’re an Illinois resident, you’ll be happy to know that many Illinois solar program options can help make the transition even more affordable. Between the federal Illinois solar tax credit 2024, the state’s SREC program, property tax exemptions, and net metering, the financial benefits are substantial.

This guide covers the top Illinois solar incentives you should know about, so read on.

Federal Solar Investment Tax Credit (ITC): The Biggest Illinois Solar Tax Credit 2024

The federal solar ITC program is available to eligible taxpayers nationwide, including in Illinois. It’s a dollar-for-dollar credit that reduces the taxes you owe the federal government, making it the single largest Illinois solar tax credit 2024 incentive available.

The solar ITC has been around since 2005 and was initially set to expire in 2022. However, in August 2022, Congress extended its expiration date through the Inflation Reduction Act. It even re-upped the rate to 30% for systems installed from 2022 through 2032.

How the ITC Works

The federal solar ITC applies to your total eligible solar PV system cost. The exact rate depends on when you install the system.

Suppose you hire a contractor to start and finish your solar energy installation in Chicago. Let’s say your total eligible costs amount to $20,000.

Because you got your system installed between 2022 and 2032, you are eligible for a 30% solar ITC. This means you can claim a $6,000 (30% of $20,000) federal tax credit.

It’s also worth noting that the federal solar ITC has no minimum or maximum cap or limit. And if you can’t use all your credits in a single tax year, you can roll over the unused portion toward future tax years. The Department of Energy provides detailed eligibility guidelines.

What Happens to the Solar ITC After 2032?

The federal solar ITC is set to decrease twice after 2032:

If you get your solar PV system in 2033, you can only claim a 26% federal tax credit. If you install it in 2034, it will decrease to 22%. The program is currently set to expire by 2035 unless Congress decides to extend it again.

What Are the Eligibility Requirements?

First off, you must be a federal income taxpayer. You must also install the system on your primary or second home. Moreover, it must be operational (you already use it to generate power) to qualify for the federal solar ITC.

Another critical requirement is that you must own the system. You can use a solar loan to finance its purchase and installation, but its ownership must be under your name. So, if you lease or rent the system, you won’t be able to claim any federal solar tax credit.

The Illinois Shines Program: Understanding SRECs Illinois

Illinois Shines is the state’s version of Solar Renewable Energy Credit (SREC) programs, and it’s one of the most valuable Illinois solar incentives 2024 available. With this program, you receive SREC Illinois credits for the energy produced by your solar PV system. An approved vendor then sells these energy credits on your behalf, reducing your upfront costs.

How Illinois Shines and SREC Illinois Credits Work

Under the Illinois SREC credit program, you earn one credit for every 1,000 kilowatt-hour (kWh) or one megawatt-hour (MWh) your system generates. However, unlike some other state SREC markets, the SRECs Illinois program works through a 15-year contract. The Illinois Power Agency purchases the projected RECs from your system upfront through an Approved Vendor, and this payment is typically used to reduce your installation costs.

To participate in the Illinois Shines program, you must work with an Approved Vendor, typically your solar installer. The vendor submits your project application and, once approved, either deducts the SREC value from your system cost or passes the incentive payment to you.

How Much Are SRECs in Illinois?

The Illinois Power Agency (IPA) governs the price of SRECs Illinois. Prices vary based on your utility territory (Group A or Group B), system size, and program year. For the 2024–2025 program year, the IPA set prices that can provide significant savings — for example, a typical 6 kW residential system in the ComEd territory could earn approximately $9,000 or more in Illinois SREC credit payments.

Keep in mind that SREC rates generally decrease slightly each program year, so the sooner you go solar, the higher your payment will likely be. You can check the latest pricing on the Illinois Power Agency website.

Illinois Solar for All (ILSFA): Incentives for Income-Eligible Residents

In addition to Illinois Shines, the state offers the Illinois Solar for All (ILSFA) program. This initiative provides even greater incentives for income-eligible residents, environmental justice communities, and nonprofit organizations. ILSFA participants can receive higher REC payments than those offered through Illinois Shines — for example, a 6 kW residential system may yield close to $20,000 in ILSFA REC payments compared to around $9,000 through Illinois Shines.

ILSFA also guarantees that participants see meaningful savings on their electricity bills, providing an important pathway to clean energy independence for households that may otherwise find solar unaffordable.

Solar Property Tax Exemption

Considering all the benefits of solar, it’s not surprising that installing PV panels will increase your home’s value. Typically, you’d have to pay property taxes for this added value, which in Illinois averages around 2.23%. So, you’d have to pay taxes worth around $446 a year for a solar PV system worth $20,000.

The good news is that Illinois has a solar property tax exemption as part of its Illinois solar incentives 2024 package. Illinois law (35 ILCS 200/10) requires county assessors to assess the value of a solar energy system the same way they would assess a conventional heating and cooling system. This means your property taxes won’t increase significantly due to the value your solar system adds to your home.

Net Metering: Important Changes for 2025

Are you a customer of Ameren, ComEd, or MidAmerican? If so, you can participate in their net metering program.

With net metering, your utility provider installs a special electric meter for your solar PV system. This meter tracks how much power your panels generate versus how much you consume. You’ll receive credits for any extra energy your panels produce that you don’t use.

You can use those credits whenever your panels don’t produce enough power — for instance, at night, during cloudy days, or when everyone is at home. So, with your credits, you can still lower or offset your future electricity bills.

Net Metering 2.0: What Changed in 2025

It’s important to note a major update: as of January 1, 2025, Illinois transitioned from full retail rate net metering to supply-only net metering for new solar installations. Under the Climate and Equitable Jobs Act (CEJA), new solar customers with systems interconnected after December 31, 2024 now receive credits only for the supply portion of their electricity bill, rather than the full retail rate.

This means new solar customers receive approximately 40–50% less value for their exported energy compared to the previous net metering structure. However, existing solar customers who had their systems operational before January 1, 2025 are grandfathered into the full retail rate net metering program for the life of their systems.

Smart Inverter Rebates: Offsetting Net Metering Changes

To help compensate for the net metering changes, ComEd and Ameren now offer Distributed Generation (DG) rebates. Homeowners can receive $300 per kW of solar capacity installed with a qualifying smart inverter, plus $300 per kWh for battery storage paired with solar. For example, an 8 kW solar system with a 10 kWh battery could earn approximately $5,400 in rebates.

These utility rebates, combined with the federal tax credit and SREC Illinois incentives, help maintain strong overall savings for Illinois solar adopters. Adding battery storage to your solar system is becoming increasingly important in Illinois to maximize self-consumption of your solar energy.

City of Chicago Solar Express Permit Program

There are no statewide solar rebates in Illinois. However, the City of Chicago offers one: The Green Building Permit Program.

This incentive expedites the approval process of rooftop solar PV systems. Before this program existed, the permitting process took 30 days. Today, qualified projects receive their permits within just one day.

The Green Building Permit Program also comes with reduced fees. The original price was $375. However, if you qualify for this incentive, you’ll only pay $275, as you’ll get a $100 reduction on the permit fee.

How to Maximize Your Illinois Solar Incentives 2024

To get the most value from the available Illinois solar incentives 2024, consider stacking multiple programs. Here’s an example of how the incentives can work together for a $20,000 solar installation:

The federal solar tax credit at 30% saves you $6,000. The Illinois Shines SREC payment could add $5,000–$9,000 in savings depending on your system size and utility territory. A smart inverter rebate from ComEd or Ameren could contribute an additional $2,000–$3,000. And your property tax exemption saves you approximately $446 per year.

When combined, these Illinois solar incentives 2024 can reduce your net system cost by 50% or more, making solar an exceptionally attractive investment for Illinois homeowners. For the best results, work with a reputable, Illinois Shines Approved Vendor who can guide you through all available programs.

Take Advantage of These Illinois Solar Program Options

From the federal solar ITC to SRECs Illinois, property tax exemption, net metering programs, and utility rebates, all these are Illinois solar program options you should take advantage of. They can help make your transition to clean energy even more affordable.

Understanding the full range of Illinois solar incentives 2024 — including the Illinois SREC credit program and the new smart inverter rebates — is key to maximizing your savings. The landscape of sustainable energy solutions continues to evolve, and Illinois remains one of the best states in the country for going solar.

All that should be enough reason to start your search for reputable solar energy contractors ASAP. The sooner you do, the sooner you can go green and take advantage of all these incentives.

For more home improvement ideas and tips like this, check out our other recent blog posts!

Frequently Asked Questions About Illinois Solar Incentives

What solar incentives are available in Illinois in 2024?

Illinois offers several solar incentives in 2024, including the 30% federal solar Investment Tax Credit (ITC), the Illinois Shines SREC program, solar property tax exemptions, net metering credits, and smart inverter rebates from ComEd and Ameren. Income-eligible residents may also qualify for the Illinois Solar for All program, which offers higher incentive payments.

How much is the Illinois SREC credit worth?

The value of an Illinois SREC credit depends on your utility territory, system size, and the current program year pricing set by the Illinois Power Agency. For a typical residential solar system under 10 kW in the ComEd territory, the total Illinois Shines SREC payment over 15 years can range from approximately $5,000 to $9,000 or more. SREC prices generally decrease slightly each program year.

Can I still get full net metering in Illinois?

Full retail rate net metering is only available for solar systems that were installed and approved for interconnection before January 1, 2025. Systems installed after this date receive supply-only net metering credits, which cover approximately 40–50% of the full retail rate. However, smart inverter rebates and battery storage incentives help offset this reduction.

Do I need to own my solar panels to get Illinois solar incentives?

To claim the federal solar tax credit, you must own the solar PV system — leased or rented systems do not qualify for the ITC. However, the Illinois Shines SREC program and net metering benefits may still be available depending on your agreement structure. It’s recommended to work with an Approved Vendor to understand your options.

How much can I save with Illinois solar incentives in 2024?

The total savings depend on your system size, location, and utility provider, but Illinois homeowners can typically reduce their solar installation costs by 50% or more when combining the federal tax credit, Illinois Shines SREC payments, smart inverter rebates, and property tax exemptions. For a $20,000 system, total incentives could easily exceed $10,000.