Solar Incentives in Illinois
Illinois homeowners who go solar in 2026 have access to several active state-level incentives. Under the Alternate Valuation of Solar Energy Systems statute, a homeowner may file a claim with their chief county assessment officer to have the property assessed at the lesser of two values — what it would be worth with a conventional energy system versus with the solar installation — effectively capping any tax-assessment increase from adding solar. For export compensation, Illinois law requires electricity providers to offer net metering to customers with systems up to 5 MW, but the credit structure depends on when a customer registered. Systems registered before January 1, 2025 receive full retail one-to-one kilowatt-hour netting for the life of the system; those registered on or after that date receive credits on different terms. Exact export rates vary by utility, so homeowners should confirm terms with their provider. ComEd and Ameren Illinois customers may also apply for a one-time smart-inverter rebate through the Distributed Generation and Storage Rebate program, though accepting the rebate affects how excess generation is credited. The Illinois Shines Adjustable Block Program offers REC payments through approved vendors, with payment levels varying by block and project category.
The federal picture has changed materially for 2026 installs. The residential Clean Energy Credit under Internal Revenue Code §25D — commonly known as the 30% federal solar tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners installing a new system in 2026 do not qualify for that credit, which will lengthen payback periods compared to recent years when it was available.
Illinois's residential electricity rate averages approximately 18.86 cents per kilowatt-hour as of March 2026, up about 1.31 cents year-on-year. Higher electricity rates generally improve the economics of self-generation, but without the federal credit, overall payback timelines will be longer than they were for 2025 and earlier installations. Homeowners should model their specific utility's current export rate, applicable rebates, and any Illinois Shines REC payments when estimating returns.
These figures are verified as of June 2026 against official sources; programs and rates change with each legislative session and utility rate case, and the Illinois Power Agency (illinoisshines.com), Illinois Commerce Commission, and relevant county assessment offices are the authoritative sources for current program details.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Illinois
Alternate Valuation of Solar Energy Systems (Property Tax)
Illinois property owners who install a solar energy system may file a claim with their chief county assessment officer for an alternate property valuation. The assessor values the improvements both as if equipped with a conventional heating or cooling system and as equipped with the solar energy system, and applies the lesser of the two values for as long as the solar system remains in use. This prevents a solar installation from raising the assessed value of the property.
| Amount | Assessed value capped at the value the property would have with a conventional energy system (lesser-of-two-values rule). |
|---|---|
| Who qualifies | Any Illinois property owner with an installed solar energy system; owner must file a claim with the chief county assessment officer and must notify the assessor within 30 days if the system stops being used. |
| Administered by | Chief county assessment officers (statewide statute) |
Source: 35 ILCS 200/10-10 (P.A. 80-430; 88-455) Official source →
Net Metering / Net Billing (Net Electricity Metering)
Illinois law requires electricity providers to offer net metering to customers with renewable generation up to 5 MW. Systems whose owners registered for net metering before January 1, 2025 keep full retail 1:1 kilowatt-hour netting (energy plus delivery) for the lifetime of the system. Customers who apply on or after January 1, 2025 receive supply-only netting: monthly excess generation earns a 1:1 credit against kilowatt-hour supply charges (energy, capacity, transmission, and purchased energy adjustment), with the customer choosing kWh or monetary credits at application, while remaining responsible for delivery charges. New post-2025 customers are instead eligible for the statutory distributed generation rebate.
| Amount | Pre-2025 registrants: full retail 1:1 kWh credit, grandfathered for system life. On/after Jan 1, 2025: 1:1 credit against kWh-based supply charges only; excess credits carry forward. |
|---|---|
| Who qualifies | Retail customers of Illinois electricity providers with eligible renewable generation (solar, wind, etc.) up to 5 MW, including community renewable generation subscribers. |
| Administered by | Illinois Commerce Commission / Illinois electricity providers |
Source: 220 ILCS 5/16-107.5; 83 Ill. Adm. Code Part 465 Official source →
Distributed Generation and Storage Rebate (ComEd / Ameren Illinois smart inverter rebate)
Illinois electric utilities serving more than 200,000 customers (ComEd and Ameren Illinois) must offer a one-time rebate to owners of distributed generation equipped with a smart inverter, including third-party-owned systems. Customers who take the rebate give up delivery-service credits for excess generation and move to supply-only netting. Paired or stand-alone energy storage is rebated separately per kilowatt-hour of capacity.
| Amount | Base rebate $300 per kW (DC nameplate) for customers who would have qualified for legacy net metering, guaranteed through December 31, 2029 (floor drops to $250/kW on or after January 1, 2030); $250/kW for other customers; energy storage rebated at $300 per kWh of nameplate capacity (=$250/kWh in some cases) per statute. |
|---|---|
| Who qualifies | Customers of Illinois electric utilities with >200,000 customers (ComEd, Ameren Illinois) whose distributed generation uses a Commission-approved smart inverter; applied for at interconnection-agreement execution. |
| Administered by | ComEd and Ameren Illinois under ICC-approved tariffs |
Source: 220 ILCS 5/16-107.6 Official source →
Illinois Shines (Adjustable Block Program)
Illinois Shines, statutorily the Adjustable Block Program, is the state's main solar incentive. It pays for Renewable Energy Credits (RECs) generated by participating rooftop/on-site distributed generation and community solar projects; utilities buy the RECs to meet the state Renewable Portfolio Standard. Payments go to Approved Vendors and are passed to customers as reduced project costs or community-solar bill credits. The program was created by the Future Energy Jobs Act (2016), expanded by the Climate and Equitable Jobs Act (2021), and modified by the Clean and Reliable Grid Affordability Act (2025); it remains open in 2026.
| Amount | REC payments vary by block, project category, and size; vendors must disclose REC values and system costs to customers. See the program's Block Capacity Dashboard for current block prices and availability. |
|---|---|
| Who qualifies | Illinois residential, commercial, industrial, public school, and community solar projects applying through registered Approved Vendors. |
| Administered by | Energy Solutions on behalf of the Illinois Power Agency |
Source: P.A. 99-0906 (FEJA), P.A. 102-0662 (CEJA), P.A. 104-0458 (CRGA); official program page Official source →
Illinois Solar for All
Illinois Solar for All (ILSFA) is the state's low-income solar program, run by the Illinois Power Agency alongside Illinois Shines. Income-eligible households can get on-site solar with no upfront costs and minimum specified savings, or subscribe to ILSFA community solar projects; qualifying non-profits and public facilities in environmental justice or low-income communities can also participate. Participants have enhanced consumer protections, including a 14-day cancellation right for on-site project contracts.
| Amount | No upfront cost and minimum specified savings for income-eligible participants; incentive levels set in the IPA Long-Term Renewable Resources Procurement Plan. |
|---|---|
| Who qualifies | Income-eligible Illinois residents (renters, homeowners, landlords; income limits per the IPA's ILSFA income eligibility guidelines, generally 80% of Area Median Income) and qualifying non-profit/public facilities. |
| Administered by | Illinois Power Agency (ILSFA Program Administrator) |
Source: Illinois Power Agency program page; P.A. 99-0906 as amended by P.A. 102-0662 Official source →
Commercial Solar Energy Systems Valuation (PA 100-0781)
Public Act 100-0781 sets a standardized statewide method for how property taxes are calculated for land hosting ground-mounted commercial solar energy systems, using a trended fair cash value published by the Illinois Department of Revenue. It gives commercial solar projects predictable property tax treatment instead of locally varying assessments.
| Amount | Valuation per the Department of Revenue's commercial solar trending factors (published annually); not a homeowner incentive. |
|---|---|
| Who qualifies | Ground-mounted commercial solar energy systems in Illinois (outside Cook County's classification system). |
| Administered by | Illinois Department of Revenue / county assessment officers |
Source: P.A. 100-0781; Illinois Department of Revenue program page Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.