How much does solar cost in Illinois?

The average residential solar installation in Illinois costs $14,000–$22,000 before incentives. After the Illinois Shines SREC income stream and rebates, the effective net cost is lower — but the federal ITC is no longer available for 2026 purchases.

Is solar worth it in Illinois without the federal tax credit?

Yes — the Illinois Shines SREC program provides 15 years of guaranteed income on top of net metering savings. With SREC values up 34–43% in 2026, the program partially compensates for the loss of the federal ITC.

Solar panels on residential homes in Illinois — aerial view of neighborhood rooftop solar installations — SunLynk solar companies Illinois

Solar by State›Illinois

Growing Solar Market

Solar Panels in Illinois

Illinois Shines SREC Program — Ongoing Income for Solar Owners

$1,200/yr

Avg. Annual Savings

4.4 peak hrs/day

Peak Sun Hours

10–14 years

Payback Period

$14,000–$22,000

Avg. System Cost

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Overview

Is Solar Worth It in Illinois?

Illinois is a growing solar market anchored by the Illinois Shines Adjustable Block Program (ABP), one of the most structured SREC incentive programs in the Midwest. Homeowners who enroll receive a 15-year contract guaranteeing payment for every kilowatt-hour their system generates — providing income on top of the electricity savings from net metering.

With ComEd serving the Chicago metro and Ameren Illinois covering central and southern parts of the state, Illinois homeowners have access to net metering credits that reduce monthly bills. The 2025 transition to supply-only net metering reduces (but does not eliminate) the value of those credits for new installations.

Benefits

Why Go Solar in Illinois

Reduce Your Electric Bill

Illinois homeowners save an average of $1,200/yr after going solar.

State & Local Incentives

Illinois offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.

Increase Home Value

Solar panels increase your home's resale value — and are excluded from property tax in most states.

Energy Independence

Lock in your electricity rate and protect against rising utility costs for 25+ years.

Available Incentives

Illinois Solar Incentives & Tax Credits

Illinois Shines (ABP) — SRECs

State Program

The Adjustable Block Program pays homeowners a fixed rate per Solar Renewable Energy Credit (SREC) for 15 years. One SREC = 1,000 kWh generated. The 2026–27 program year saw a 34–43% increase in SREC values.

15-year SREC income contract

Smart Inverter / DG Rebate

Rebate

Illinois offers a $300/kW rebate for smart inverter installations and $300/kWh for battery storage through the Distributed Generation Rebate program.

$300/kW solar + $300/kWh storage

Net Metering (Supply-Only)

Net Metering

ComEd and Ameren Illinois offer net metering for new installations (post-Jan 2025) on a supply-only basis — credits apply to supply and transmission charges but not delivery charges.

Partial retail rate credits

Sales Tax Exemption

Tax Exemption

Solar energy equipment is exempt from Illinois's 6.25% state sales tax.

6.25% sales tax savings

Property Tax Exemption

Tax Exemption

Solar installations are exempt from property tax assessment increases in Illinois. Your property taxes will not rise because of your solar panels.

100% property tax exempt

Federal Solar Tax Credit (Expired)

Tax Credit

The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025. Not available for 2026 purchases.

Expired Dec 31, 2025

Updated July 2026

What Changed in 2026 for Illinois Solar

The federal solar tax credit expired December 31, 2025 — here's what that means for Illinois homeowners and what options remain.

Federal ITC Gone — Illinois Shines SREC Values Jump 34–43%

The 30% federal residential solar tax credit expired December 31, 2025. Illinois partially offsets this with a major boost to its Illinois Shines Adjustable Block Program (ABP): SREC values for the 2026–27 program year increased 34–43% over the prior year. Homeowners who enroll in Illinois Shines receive a 15-year contract paying a fixed rate per SREC (one SREC = 1,000 kWh generated), providing predictable long-term income on top of net metering savings.

Supply-Only Net Metering Transition (Jan 2025)

New solar installations interconnected after January 1, 2025 are on Illinois's "supply-only" net metering tariff — credits apply to supply and transmission charges but not delivery charges. This reduces the effective value of net metering credits compared to the prior full-retail-rate policy. ComEd customers in northern Illinois and Ameren Illinois customers in central/southern Illinois are both affected. Factor this into your payback calculation.

Smart Inverter Rebates and Property/Sales Tax Exemptions

Illinois offers a $300/kW rebate for smart inverter installations and a $300/kWh rebate for battery storage through the Distributed Generation Rebate program. Solar equipment is exempt from the state's 6.25% sales tax, and solar installations are exempt from property tax assessment increases. With electricity rates averaging $0.17/kWh and 4.4 peak sun hours per day, most Illinois homeowners see a payback period of 10–14 years in 2026.

Common Questions

Illinois Solar FAQ

Illinois Shines (the Adjustable Block Program) is a state-administered SREC program that pays homeowners a fixed rate per 1,000 kWh their solar system generates, for 15 years. The 2026–27 program year increased SREC values by 34–43% over the prior year.

Local Solar Companies

Solar Companies by City in Illinois

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Chicago$1,280/yr avg savings

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