The rapid expansion of solar energy in the United States has been a major success story for renewable energy. Illinois is one of the states actively taking part in this push, providing a variety of incentives for homeowners and businesses to invest in solar energy. This article will explore the different types of Illinois solar incentives, their tax credit and rebate opportunities, and the benefits of taking advantage of these incentives. By understanding these incentives, individuals and businesses alike can make an informed decision about whether solar energy is right for them.
Current status of Illinois State Solar Incentives
Illinois is the fifth largest state for installed solar capacity with over 1,600 megawatts of power. As of 2021, the state offers several incentives for individuals and businesses that choose to install solar panels. The solar incentives available are tax credits, rebates, and grants.
The Federal Solar Investment Tax Credit (ITC) is currently the largest incentive available. This is a 30% tax credit for individuals and businesses that install solar energy systems on their property. The ITC was scheduled to expire at the end of 2021, however, the Consolidated Appropriations Act of 2021 extended the ITC to the end of 2022.
Illinois also offers several state tax credits for those that install solar energy systems. The Illinois Solar Renewable Energy Credit (SREC) is a sales tax credit that provides a 10% tax credit for solar energy systems installed before the end of 2022. The Illinois Solar Energy System Incentive Program (SESIP) is a grant that provides up to $2,000 for the installation of solar energy systems.
The Illinois Solar for All Rebate Program provides a $750 rebate for solar energy systems installed on eligible buildings. This rebate program is funded by the state government and is available to low-income households and not-for-profit organizations. There is also a rebate program for solar energy systems installed in commercial buildings that is funded by the City of Chicago.
In addition to these incentives, Illinois also allows net metering, which allows customers to sell their excess electricity back to the power grid. Customers who participate in net metering are able to earn credits that they can use to offset their electricity costs.
As of 2021, Illinois has several solar incentives available that make it easier and more affordable for individuals and businesses to install solar energy systems. These incentives provide a way for homeowners and businesses to save money on their energy costs and help reduce their carbon footprint.
Solar Incentives, Tax Credits, and Rebates in Illinois
The state of Illinois offers a variety of incentives to promote solar energy. Homeowners, business owners, and organizations that want to make the switch to solar energy may be eligible for various solar incentives, tax credits, and rebates.
One of the most beneficial incentives for those looking to go solar is the Solar Renewable Energy Credits (SREC) program. This program offers homeowners a tax credit for 25 percent of the installed cost of solar energy systems, with a cap of $7,500. Additionally, homeowners may also be eligible for a Solar Investment Tax Credit (ITC) of up to 26 percent.
Solar rebates are available through the Illinois Solar for All program for homeowners and small business owners. The program offers up to $1,500 per kilowatt hour (kWh) of solar energy for each system installed. Additionally, there are also rebates available for solar hot water systems, which can save households up to $1,250 in yearly energy costs.
Net Metering is another incentive offered in Illinois. Net metering allows homeowners to resell excess energy their solar energy systems generate back to the grid, and receive credits on their utility bills for the electricity used. The credits they receive can be used to offset their utility bills.
The Value of Distributed Energy Resource (VDER) Value Stack is another incentive offered in Illinois. The VDER Value Stack is based on the value of energy cost savings, system reliability, grid reliability, and environmental benefits associated with distributed energy resources. It is designed to reward projects that are beneficial in a variety of ways. Additionally, the VDER program also offers incentives to projects that use innovative technologies.
The Sales Tax Exemption is an incentive for businesses and non-profits purchasing or leasing solar energy systems. Sales Tax Exemption applies to solar equipment, services, and installation costs. the Property Tax Exemption is an incentive for residential and non-residential property owners who install solar energy systems. The exemption provides up to one-third of the assessed value of the property where the solar energy systems are installed.
These incentives can make it easier for homeowners, businesses, and organizations to go solar. Incentives such as Solar Renewable Energy Credits, Solar Investment Tax Credit, Solar Rebates, Net Metering, VDER Value Stack, Sales Tax Exemption, and Property Tax Exemption help make solar energy a more affordable and viable energy source.
Estimated Solar Savings in Illinois
When considering solar energy in Illinois, one must take into account the incentive programs available in the state. These incentives can include tax credits and rebates designed to encourage the installation and use of solar energy. They can significantly reduce the upfront cost of a solar installation, and make solar energy more affordable. To give an idea of the potential savings available with these incentives, let's look at a hypothetical example.
Let’s say a homeowner in Illinois wants to install solar on their home. The system costs $20,000 before considering incentives. After factoring in the state’s solar incentives, the total cost of the system is reduced by approximately 30%. This means the system cost is now $14,000. The homeowner will then save an estimated $1,000 in energy costs every year. That’s a 7 year payback period (14,000/1,000). Over the lifetime of the system, the homeowner could save over $40,000 in energy costs.
These type of savings are not uncommon in the state of Illinois. Many solar programs are available for residential, commercial, and agricultural properties. Together, these programs have helped make solar energy more accessible for many Illinois homeowners, businesses, and farmers.
In addition to the financial incentives available through the state, there are also federal incentives. Homeowners can take advantage of 26% federal solar tax credits when installing solar. This incentive combined with state incentives can decrease the cost of a solar installation even further.
These incentives can make solar energy more accessible to Illinois homeowners, businesses, and farmers. Homeowners and business owners who are interested in exploring the potential savings available with solar energy should contact a local solar installer to learn more about the incentives available in their area.
Illinois Solar Incentives Available in 2023
Illinois is a great place to install a solar system. In addition to getting clean and cost-effective energy, many homeowners can take advantage of the incentives and tax credits that the state has put in place to encourage solar energy use. In 2023, there will be several incentive programs available to facilitate solar installation in the state.
The federal Investment Tax Credit (ITC) is an ongoing incentive that allows homeowners to take 30 percent of the cost of installing a solar energy system as a tax credit. This credit is available to both homeowners and businesses, and can be used to offset the cost of a solar system.
Illinois has two additional incentive programs available in 2023. The Renewable Energy Resources Fund (RERF) and the Solar Renewable Energy Credit (SREC) Program both provide financial incentives to homeowners who install solar energy systems. The RERF provides cash incentives in the form of one-time payments to eligible customers. The SREC program rewards customers with Solar Renewable Energy Credits, which can be redeemed for cash payments or used as a tax credit.
In addition to the federal ITC and the state incentive programs, many local utility companies also offer financial incentives for installing solar energy systems. These incentives vary by utility company and are typically offered in the form of rebates or reduced utility rates. Most utility companies also offer net metering, which allows homeowners to earn credit on their utility bills for the energy their solar system produces.
In short, Illinois provides many financial incentives and tax credits to those who choose to install solar energy systems. From the federal ITC to state and local incentive programs, homeowners can save money on their solar installations in 2023.
Top Solar Installers in Illinois
Below is a list of 5 of the top solar installers in Illinois. Each of these installers provides excellent solar installation services and incentives that are tailored to the needs of Illinois homeowners in order to maximize the potential savings and benefits of solar energy.1. SolarCity: SolarCity is the largest residential solar power provider in the United States. They offer solar panel installation services, as well as education and incentives for those considering solar energy. They also provide a 20-year warranty and competitive financing for their products. Best for: homeowners who are looking for a top-rated, experienced installer. Cost of a 8kW system: $13,675 - $17,850; BBB Rating: A+
2. Sunrun: Sunrun is one of the largest solar energy companies in the country. They offer innovative solar solutions, such as solar leasing, which allows homeowners to install solar panels with no upfront cost. They also provide easy financing options and have a long track record of excellent customer service. Best for: homeowners looking for an affordable, low-maintenance solution. Cost of a 8kW system: $11,965 - $15,750; BBB Rating: A+
3. SunPower: SunPower is one of the largest solar energy companies in the world. They offer a wide range of solar panel installation services and solar energy solutions. They have long-term warranties and financing options, and are known for their innovative products and excellent customer service. Best for: homeowners looking for an experienced, reliable solar installer. Cost of a 8kW system: $13,400 - $16,950; BBB Rating: A+
4. Vivint Solar: Vivint Solar is a leading solar energy provider, providing solar panel installation, energy storage solutions, and solar monitoring systems. They offer competitive pricing and an easy financing option. Best for: homeowners looking for an easy, low-cost solution. Cost of a 8kW system: $18,995 - $22,395; BBB Rating: A+
5. Midwest Solar Power: Midwest Solar Power is an Illinois-based solar energy company that provides award-winning solar panel installation services. They offer low-cost installation, competitive financing options, and long-term warranties. Best for: homeowners looking for a quality solar installer in Illinois. Cost of a 8kW system: $15,450 - $19,200; BBB Rating: A+
Illinois homeowners have a variety of top-rated solar companies to choose from for their solar panel installation needs. Each of the above companies offers competitive pricing, innovative products, excellent customer service, and financing options. With Illinois solar incentives such as tax credits and rebates, Illinois homeowners can maximize the savings and benefits of solar energy.Which Solar System Is Right for Your Home?
When deciding which solar system is right for your home, there are several factors to consider. First, you should evaluate your home’s energy needs. Consider your average energy usage, what appliances and electronics you use, and the size of your home or roof. Also take into account the type of roof you have and the climate you live in, as both are important factors in determining your solar panel placement and performance.
It is also important to consider the Illinois solar incentives that are available. Illinois offers both tax credits and rebates for residential solar users. Tax credits apply to the cost of equipment and installation, while rebates are based on the amount of energy generated by the system. Depending on your energy needs and system size, it may be beneficial for you to consider both of these incentives when selecting your solar system.
There are many types of solar systems on the market today that vary in price, size, and performance capabilities. It is important to do your research and consult with a professional in order to get the best system for your needs. They can provide advice on which type of system is most suitable for your home, taking into account the Illinois solar incentives and other factors. Additionally, they can help you determine the estimated return on investment for the system and any additional savings or benefits you may qualify for.
you should also consider the installation process and any maintenance that may be required. Solar energy is a long-term investment, and you want to be sure to select a system that is easy to install and maintain. This will ensure that you are able to get the most out of your solar system and make the most of the available Illinois solar incentives.
1. What are the specific tax credits available for installing solar power in Illinois?
In Illinois, there are several tax credits available for installing solar power. These include the state’s Solar Renewable Energy Credit (SREC) program, the Illinois Solar for All program, and the federal Investment Tax Credit (ITC).
Solar Renewable Energy Credit (SREC) Program: This program offers financial incentives to residents who install solar electric systems on their property. Customers receive Solar Renewable Energy Credits (SRECs) for each kilowatt-hour of electricity produced by their system. SRECs can be sold to utilities for additional income.
Illinois Solar for All Program: This program provides incentives to residential customers who install solar electric systems. Solar for All pays customers for each kilowatt-hour of electricity produced by their system. The incentive amount is based on the size of the system and the solar resource in the area. Customers can also receive additional incentives for adding energy storage to their system.
Federal Investment Tax Credit (ITC): The Investment Tax Credit (ITC) is a federal tax credit for homeowners who install solar electric systems. The ITC provides a credit of up to 26% of the cost of the system. This tax credit can be used to offset taxes owed on the income received from solar energy production.
These tax credits are available to homeowners who install solar electric systems in Illinois. They can help offset the cost of installation and provide additional income from the sale of SRECs and other incentives.
2. What state or local rebates are available for solar installations in Illinois?
Residents in Illinois can benefit from both state and local incentives and rebates when they install a solar energy system. The state offers a Solar Renewable Energy Credit (SREC) program, which provides an incentive for installing solar. SRECs are marketable certificates that solar system owners can sell to utilities, providing a financial return on their investment.
At the local level, residents can take advantage of the solar property tax exemption. This incentive allows property owners to exempt the value of their solar energy system from their property taxes. The City of Chicago also offers a Solar Chicago rebate program to residents who install solar photovoltaic systems. This rebate program offers a maximum of $25,000 or 25 percent of the total installation cost.
In addition, several cities and counties in Illinois offer solar installation incentives as well. Residents can take advantage of the Suburban Cook County Solar Energy System Tax Abatement Program, which offers a 15-year abatement on the increased assessed value of a property due to a solar energy system installation. The state also offers a Renewable Energy Resources Program, which provides grants and loans that help homeowners cover the cost of installing a solar energy system.
3. What is the eligibility criteria for participating in Illinois solar incentive programs?
In order to be eligible for Illinois solar incentive programs, you must meet the following criteria:
1. You must reside in the state of Illinois.2. Your system must be installed by a qualified installer and inspected and registered with the Designated Electric Supplier (DES) in order to be eligible for the incentive programs.
3. Your system should meet the applicable requirements of the program you are applying for.
4. Your solar incentive application must be submitted to the Illinois Department of Commerce and Economic Opportunity (DCEO) before December 31st of the year in which the system is installed.
5. The system you install must be sized to meet your estimated energy needs and not exceed the maximum size as specified by DCEO and your DES.
6. Your system must meet all local and county zoning requirements.
7. Your solar energy system must be grid-connected.
8. You must be the end-user of the energy generated by the system.
9. You must agree to the terms and conditions of the program.
10. You must have paid all property taxes and have no outstanding tax liens on your property.
4. Is there an expiration date for Illinois solar incentives?
Yes, there are expiration dates for Illinois solar incentives. The Illinois Solar Renewable Energy Credit (SREC) Program is set to expire in 2021.
The SREC Program provides financial incentives for solar energy production and is structured as a 20-year program. For the first five years of the program, solar producers receive a Solar Renewable Energy Credit (SREC) for each megawatt-hour of energy their system produces. The number of SRECs awarded is based on the size of the system and its production. After the initial five-year period, the number of SRECs awarded is reduced each year until the program expires in 2021.
The Illinois Solar for All Program was launched in 2017 to provide incentives for low-income households. This program is also set to expire in 2021. This program provides incentives for households that install solar energy systems and are located in low-income communities.
the Solar Energy Incentive Program provides incentives for businesses that install solar energy systems. This program also expires in 2021.
there are several Illinois solar incentives that are set to expire in 2021.
5. Are there any other incentives or support available for residential solar installations in Illinois?
Yes, there are other incentives and support available for residential solar installations in Illinois. One of the most common incentives is the Solar Renewable Energy Credit (SREC) program. This program allows solar system owners to receive financial compensation for the energy their system produces. They can then sell those credits to utility companies, which helps to offset the cost of the installation. Additionally, the Illinois Power Agency offers a Residential Renewable Energy Energy Program (RRP), which provides financial assistance to homeowners who install eligible solar energy systems. The program is funded by the Renewable Energy Resources Fund, which also provides tax credits and incentives to solar system owners. Other incentives include net metering, which allows customers to receive credits on their electricity bills for the energy they generate, and the Property Assessed Clean Energy (PACE) program, which helps finance energy efficiency upgrades and renewable energy systems in qualified properties.
The state of Illinois also provides resources and guides to help homeowners learn more about the available incentives and make the most of their solar installation. For example, the Illinois Solar for All Program provides technical assistance and resources to help low-income families install solar systems. The Illinois Clean Energy Community Foundation also offers grants and workshops to help people understand the benefits of solar energy and make educated decisions about their solar investments. non-profits like the Solar Energy Industries Association and the Midwest Renewable Energy Association provide resources, guidance, and advocacy for renewable energy in Illinois.
Illinois has some of the best solar incentives in the nation. Tax credits, rebates, and other incentives make it an attractive investment for homeowners and businesses alike. With these incentives in place, it is an opportune time to install a solar energy system and take advantage of all the financial benefits that come with it. With the right solar system in place, you can save money on energy bills while also doing your part to help protect the environment.
