2025 Illinois Solar Rebates & Incentives for Homes and Businesses
Electricity costs keep climbing, and summer cooling drives bills even higher.
The good news: Illinois offers one of the strongest incentive stacks in the Midwest for both homes and businesses. This guide breaks down incentives at the federal, state, and local utility levels—plus what’s different in 2025 and what to watch for in 2026.
If you want help turning these programs into custom projects, our Illinois solar installation team can handle the design, installation, maintenance and permit paperwork.
Table of Contents
- Federal Solar Incentives
- Illinois State-Level Solar Incentives
- Utility Rebates for Residential and Commercial Properties
- How Do I Apply for Illinois Solar Rebates?
- FAQs
Federal-Level Solar Incentives
The most valuable financial benefits often start at the federal level. These incentives are designed to lower the upfront cost of installation, shorten your payback period, and improve your long-term return on investment. Below, we’ll cover two of the most impactful programs available to businesses and homeowners.
The Federal Solar Tax Credit: Your Biggest Savings
The Residential Clean Energy Credit lets homeowners claim 30% of qualified costs—panels, inverters, racking, labor, permitting and standalone batteries—installed after 12/31/2022.
Though the credit is non-refundable, it offers a significant federal income credit come tax time.
New federal legislation (the “One Big Beautiful Bill Act,” or OBBBA) accelerates the phase-down and phase-out of some clean energy credits beginning in 2026. Until the IRS finalizes updated instructions, plan around a 30% credit for 2025 installs and consult your tax professional on timing and changes to filing instructions.
Filing tip: Keep your final contract, paid invoice and battery spec sheet (if applicable). You’ll use them with Form 5695 to claim your credit.
Businesses Only: Modified Accelerated Cost Recovery System (MACRS)
Most business-owned solar panels and qualifying storage batteries can be depreciated over five tax years using MACRS. In short, your business gets larger deductions in the early years, rather than spreading costs over a long period. You claim the depreciation on Form 4562.
In early 2025, bonus depreciation began phasing down to 40% under prior law. However, the OBBBA restored 100% bonus depreciation for qualified property placed in service on or after January 19, 2025.
In other words, most commercial solar placed in service on or after that date can expense 100% of its cost in the first tax year, though there are additional considerations if you claim the investment tax credit (ITC).
Illinois State-Level Solar Incentives
Illinois Shines (Adjustable Block Program)
Illinois buys the environmental value of your solar installation—measured as renewable energy credits (RECs)—through Illinois Shines.
This one has a lot of terms, so let’s break them down one at a time:
- One renewable energy credit equals 1,000 kWh that your system is expected to generate over the next 15 years.
- Credit values are determined on a sliding scale based on expected output and geographic location.
- Payments have most recently ranged from around $60–$75 per credit for the average home installation.
- The REC value typically shows up as an upfront discount or clearly listed line item in your contract.
- The program broadly defines two classes of solar systems:
- Small Distributed Generation (Small DG): Systems producing up to and including 25 kW in alternating current (AC) electricity. This is the size range for most homes and smaller projects.
- Large Distributed Generation (Large DG): Systems over 25 kW AC up to and including 5 MW AC. This typically fits larger buildings, schools, factories, and farms.
- Payment schedules vary depending on the installation’s size, but are always conducted through vetted Approved Vendors (often your installer or their partner).
- Small DG: The full 15-year REC contract value is paid at energization to the Approved Vendor, who passes the value to you per your contract.
- Large DG (and Community-Driven Community Solar): 15% paid at energization, with the rest paid quarterly over six years.
Those terms are a lot, but no need to remember them all. Your Brda electrician can help you navigate the process.
Illinois Shines can meaningfully reduce your net price. Better yet, it operates separately from utility rebates and federal tax credits, making it a must-have for your incentive stack.
Net Metering in Illinois
Net metering is a system where solar owners can earn bill credits for extra electricity they send to the grid. When your panels produce more than you’re using, the extra flows to the grid and your meter essentially “runs backward” by earning credits on future bills.
What changed on January 1, 2025: New interconnections (system activation) in ComEd, Ameren and MidAmerican territories now earn credits that offset only the supply part of the bill (not delivery charges, taxes, or fees). You can choose between credits measured as kWh or as a dollar value, and—under the new rules—those credits never expire.
What the change means for savings: Using your solar as it’s produced is now worth more than sending it back to the grid.
Using your own solar, or self-consumption, works best by running large energy loads (AC, EV charging) while the sun is out. When you use solar instantly, you avoid paying both the supply and delivery parts of your bill, while extra energy earns supply only, so the value is smaller.
Though net metering rates are lower than their top historical value, they’re still a worthwhile incentive to add to the stack for prospective solar seekers.
Solar Property Tax Special Assessment
Illinois provides a special assessment to ensure that property value increases from adding solar don’t raise your property taxes.
How to claim: File Form PTAX-330 with your county assessor after installation.
Different rules apply to roof-mounted residential systems versus ground-mounted or commercial systems.
Residential Roof-Mount:
- After you file, the tax assessor will compare your property value as if it had a conventional heating/cooling system against its value with solar.
- The lower of the two figures is used for your tax assessment.
- This “lesser-of” rule applies as long as the solar system is in use.
- Most homeowners see no property tax increase from new solar installs.
Ground-Mount/Commercial:
- Ground-mounted/commercial systems are valued using a statutory formula under Illinois law.
- The Illinois Department of Revenue publishes the valuation formula, which your electrician should reflect in the finances of any proposal.
Utility Rebates
Illinois utilities offer cash rebates for qualifying solar and battery systems with smart inverters. Direct generation (DG) rebates are measured in direct current (DC) solar energy production.
ComEd
Residential & Small Business
- Solar DG rebate: $300/kW (DC) — requires a qualifying smart inverter plus standard interconnection and installer settings.
- Battery rebate: $300/kWh — requires a qualifying smart inverter and enrollment in real-time hourly pricing.
Large Commercial & Industrial
- Solar DG rebate: $250/kW (DC) — requires a qualifying smart inverter; tariff-specific metering/telemetry may apply.
- Battery rebate: $250/kWh — requires a qualifying smart inverter; tariff-specific metering/telemetry and rate conditions may apply.
Ameren
Residential & Small Business
- Solar DG rebate: $300/kW (DC) — requires a qualifying smart inverter plus standard interconnection and settings.
- Battery rebate: $300/kWh — requires a qualifying smart inverter and enrollment in an hourly price rate.
Large Commercial & Industrial
- Solar DG rebate: $250/kW (DC) — requires a qualifying smart inverter; tariff-specific metering/telemetry may apply.
- Battery rebate: $250/kWh — requires a qualifying smart inverter; tariff-specific metering/telemetry and rate conditions may apply.
How Do I Apply for Illinois Solar Incentives?
1) Speak with a qualified solar electrician. Share a recent electric bill and any goals (budget, backup, EV charging). Your installer should be licensed to pull permits where you live and familiar with Illinois Shines, ILSFA, and your utility’s interconnection steps. Brda Electric can guide you through every step to make sure you don’t miss out on valuable savings.
2) Get a right-sized design and quote. Ask for model numbers, warranty terms, and a line-item view of RECs, rebates, tax incentives and expected net metering earnings.
3) Paperwork and applications.
- Illinois Shines / ILSFA: Submitted by an Approved Vendor.
- Utility interconnection & net metering: Filed with your utility by your installer.
- Smart inverter/storage rebates: Utility forms are handled by your installer.
4) Claim the federal credit. After your system is in service, work with your tax professional to file for the Residential Clean Energy Credit. Businesses can coordinate their depreciation with a tax advisor.
FAQs
Does Illinois still offer full retail net metering for new customers?No. For ComEd and Ameren, new interconnections from Jan. 1, 2025, get supply-only credits. Systems documented by 2024 deadlines keep full retail credits under current rules.
Can I combine Illinois Shines with the federal credit?Yes. Illinois Shines is a state REC incentive. Most homeowners use it to lower the upfront price, then claim any eligible federal credit on their net cost. (Talk to your tax pro.)
Are there Illinois solar rebates for batteries?Yes. ComEd and Ameren offer up to $300/kWh storage rebates for qualifying projects, separate from the solar DG rebate. Program terms apply.
How long does it take to get solar rebates in Illinois?REC payments are tied to energization and vendor invoicing; utility rebates are paid after approval; federal credits are claimed at tax time. Your contract should list the timing for each step.
Ready to Turn Incentives Into Real Savings?
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