If you’re a homeowner in Illinois and haven’t switched to solar yet, you really need to start considering it. Specifically because of the state-wide solar incentives exclusive to Illinois homeowners and renters.
Solar panels and home solar systems are cheaper than ever before; combine that with the 30% federal solar tax credit and other Illinois solar programs, and you can see how solar starts to pay for itself relatively quick. Here are just some ways to get massive discounts on solar panels (or other solar systems) while producing good, clean energy for life.
The State of Solar in Illinois
Thanks to Illinois’ Renewable Portfolio Standards, the state must produce 25% of its energy from renewable sources by 2025. It’s now offering several solar incentives to support this goal, ranging from subscription programs to tax rebates.
Federal Solar Investment Tax Credit
The federal solar investment tax credit (ITC) ultimately impacts solar owners in terms of costs. If you install a solar system before the end of 2032, you’ll get a 30% federal tax credit of the cost of your solar panel system. That’s 30% off the entire cost of the system, including system equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
Illinois Shines Program
The Illinois Shines adjustable block solar grant program does give cash upfront to your solar installer when you switch to solar. Combined with the 30% federal tax credit, it can actually pay for a significant portion of your system, if not for all of it. This would be best for an average 6-kilowatt solar system setup.
As an example, an average 6 kW home solar system cranks out about 110 SRECs over 15 years, netting a grant amount of about $6,600.
To become eligible, you’ll need to sign over your SREC rights to an approved vendor.
Illinois Solar for All Program (ILSFA)
This program is best for low-income households who might not otherwise be able to afford residential solar. It offers two main options: Community Solar projects and Distributed Generation projects.
The Community Solar program allows renters that make 80% or less of the median income to subscribe to an offsite solar energy system and receive the credit on their electric bill.
The Distributed Generation program allows low-income households and building owners to install ground or rooftop mounted solar panels. These entities must also be under the 80% median income, and will receive credits on their energy bill.
Illinois Property Tax Exemptions
Under a special assessment status, installing solar panels in Illinois increases your property value. You’d ordinarily be taxed on this increase, but the state of Illinois will waive the increased property tax on your state return.
To qualify, you’ll need to file the State of Illinois PTAX-330 property tax form with your local country assessor.
Illinois Net Metering
You don’t need to sign with a solar incentive program to take advantage of these benefits. Utility companies are offering net metering programs that provide energy credits for any power surplus. You’ll have to register with your utility company, establish an interconnection with the power grid, and ensure a bi-directional meter to track your outgoing electricity.
The only drawback is that your credits do expire at the end of every annual period. They revert back to the utility without compensation, so you should make sure your solar production isn’t too generous during the year.
Note: The state of Illinois is deciding whether it should change its net metering policies. You can always Check here for updates.
Ready to Get Qualified?
There are many more options to get solar and reduce costs. Both renters and homeowners in Illinois can participate in these programs and gain the profit of utilizing good, clean energy.
We recommend you sign with Phoenix Exteriors due to its dedicated solar consults and workmanship guarantee. Phoenix serves 6 states across the nation, and is headquartered in Schaumburg, Illinois as Chicago’s central solar roofing hub.
Book a solar appointment with Phoenix here.
Get a free solar estimate here.