
Chicago · IL
Chicago homeowners pay $14,200–$21,000 for a typical 8 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Illinois's property tax and sales tax exemptions remain active. At ComEd (Commonwealth Edison)'s rate of $0.163/kWh, most systems pay back in 11–16 years.
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4.1 hrs/day
Peak Sun Hours
$1,280/yr
Avg. Annual Savings
11–16 yrs
Payback Period
$14,200–$21,000
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Chicago
ComEd rates are among the highest in the Midwest. Illinois Shines REC payments significantly improve Chicago's solar economics — the program effectively reduces net system cost by $3,000–$6,000 on a typical residential installation. Chicago's 4.1 peak sun hours per day is lower than Sun Belt markets, so systems are sized larger.
Key solar facts for Chicago
Active Incentives
Illinois Shines is the state's main solar incentive — a Renewable Energy Credit (REC) program that pays a lump sum for 15 years of projected clean energy production. Residential systems earn a fixed REC price set by the Illinois Power Agency. Payments are typically made upfront by the installer. Program blocks open periodically — check current availability with your installer.
Value: Lump-sum REC payment (varies by block)
Income-qualified Illinois residents may receive additional incentives through the Solar for All program, which provides higher REC prices and additional grants for low-income households.
Value: Enhanced REC pricing for income-qualified households
ComEd credits excess solar generation at the retail rate under Illinois net metering law. Residential systems up to 40 kW qualify. Annual true-up: unused credits roll forward but do not pay out as cash.
Value: Retail rate credit
Solar installations are exempt from Illinois property tax assessments for 20 years from installation. Adding panels does not increase your annual property tax bill.
Value: 20-year property tax exemption
Net Metering in Chicago
ComEd credits excess solar at the retail rate. Credits roll forward monthly; unused annual credits do not pay out as cash. Systems must be 40 kW or smaller to qualify for residential net metering.
Solar Leases & PPAs in Chicago
Solar leases and PPAs are available in Chicago through national installers. Illinois Shines REC payments are typically passed through to customers in lease/PPA agreements — verify with your installer how the incentive is structured.
How much does solar cost in Chicago?
Detailed cost breakdown, financing options, and payback analysis for Chicago homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
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Chicago Solar at a Glance
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