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Solar in Illinois: incentives, net metering and what it costs
Illinois still has one of the stronger solar programs in the country — and one specific trap that can quietly cost you more than the rebate pays.
The short answer: the federal 30% credit is gone, but Illinois Shines still pays a substantial lump sum — commonly $9,000–$11,000 on a 7 kW system — about a year after installation. That’s now the largest single incentive available to an Illinois homeowner. But read the net metering section before you accept any utility rebate.
Illinois Shines — the big one
Officially the Adjustable Block Program. You’re paid for the renewable energy credits your system is expected to generate over 15 years, delivered as a single upfront payment roughly a year after your system is switched on.
Not a monthly credit, not a tax credit. A cheque, once.
| System size | Recent rate per REC, ComEd territory |
|---|---|
| Under 10 kW | around $75 |
| 10–25 kW | around $70 |
A typical 7 kW system generates roughly 130 RECs across the 15-year contract, which works out somewhere in the region of $9,000–$11,000 before fees.
You can’t claim this yourself. It goes through an Approved Vendor — usually your installer — and they take a cut.
Ask two questions before signing: what is the estimated total REC payment, and what percentage does the vendor keep? Some pass through nearly all of it. Some keep a great deal. It’s a legitimate fee for administering the paperwork, but the size varies enormously and it is rarely volunteered.
Ask for both figures in writing, and compare them across your three quotes alongside cost per watt.
Rates step down as each block of capacity fills. That creates genuine, verifiable timing pressure — unlike most solar sales urgency. Check the current block status yourself at illinoisshines.com rather than taking a salesperson’s word for it.
Net metering — and the trap
Illinois changed its terms for systems connected after January 1, 2025.
| Connected | What you get |
|---|---|
| Before Jan 1, 2025 | Full retail net metering, grandfathered for the life of the system |
| After Jan 1, 2025 | Supply-only: credit against the supply and transmission parts of your bill, but not delivery charges |
Delivery charges are a meaningful slice of an Illinois electric bill, so a credited kilowatt-hour is now worth noticeably less than one you buy.
ComEd and Ameren offer a distributed generation rebate — commonly $300 per kW of solar and $300 per kWh of battery storage. On a 7 kW system that’s around $2,100. Real money.
But taking it permanently locks you into supply-only net metering, and the decision cannot be reversed.
If you’re already grandfathered on full retail net metering — connected before January 2025 — accepting that rebate could cost you far more over twenty years than the $2,100 it pays. Work out the arithmetic before you sign, or ask your utility directly what you would be giving up.
If you’re connecting now, you’re on supply-only regardless, so the rebate is simply worth taking.
What else applies
- Property tax exemption — 20 years. Solar raises your home’s value, and Illinois prevents that increase from raising your property tax bill. Automatic in effect, though your assessor may need the paperwork.
- No state income tax credit. Illinois doesn’t have one for solar. You’ll see sites claiming otherwise — they’re wrong, and it’s a useful test of whether a page has been checked recently.
- Federal: nothing for buyers. Section 25D expired December 31, 2025. The full explanation is here.
What it costs here
Illinois pricing sits close to the national range of $2.50–$3.50 per watt. A typical 7 kW system runs roughly $17,500–$24,500 installed, before incentives.
Rough arithmetic on a 7 kW system in ComEd territory:
| Item | Amount |
|---|---|
| Installed cost | − $17,500 to $24,500 |
| Illinois Shines, after vendor fee | + $9,000 to $11,000 |
| ComEd or Ameren rebate | + around $2,100 |
| Federal tax credit | + $0 |
| Net, roughly | $6,000 to $13,000 |
That’s a wide spread because vendor fees and installer pricing both vary a great deal. It is also, notably, a much smaller number than the sticker price — Illinois incentives do real work.
How much sun does Illinois actually get?
Around 4.3 peak sun hours a day averaged over the year. Below Arizona, comfortably above the Pacific Northwest, and firmly in the range where solar works.
Expect roughly 1,250 kWh per year for each kilowatt installed. A 7 kW system should produce somewhere near 8,750 kWh annually — enough to cover most of an average Illinois home’s usage.
Winter production drops to perhaps half of summer, driven by short days and a low sun angle rather than cold. Panels actually run more efficiently in cold weather.
Questions to ask an Illinois installer
- What is the estimated total Illinois Shines payment, and what percentage do you keep as the Approved Vendor?
- Which block are we applying under, and what happens if it fills before my application goes in?
- Are you including the ComEd or Ameren rebate, and do you understand what it does to my net metering?
- What is the cash price, separate from any financing?
- Are you licensed in Illinois, and is the crew your own or subcontracted?
The first one is the Illinois-specific question. The rest apply anywhere — see how to read a solar quote and how to vet an installer.
Sources
- EnergySage, Illinois solar incentives, tax credits and rebates.
- Windfree Solar, Illinois solar incentives are changing.
- Palmetto, Solar power in Illinois: 2026 costs and incentives.
- DSIRE, Illinois incentive database.