Living in Illinois and thinking of installing solar panels? Go for it! Illinois gets a lot of sunlight, which means that installing solar panels will significantly reduce your bills. If the high upfront costs daunt you, here’s our article on Illinois solar incentives that can make this shift much easier.
Key takeaways
- Illinois is a great state to install solar. And multiple incentives and rebates the state offers for residential, business, and community solar projects only proves it's a smart choice.
- Illinois residents can claim a 30% federal tax credit applied to the total cost of their solar system installation.
- Net metering allows homeowners to sell excess solar energy back to the grid for credits. Credits are valued at the full retail electricity price. Unused credits roll over monthly, but expire after one year.
- Homeowners can earn SRECs for each MWh of energy produced. SRECs can be sold, providing additional income over time. Qualification for the program requires being waitlisted.
- The added value of a solar PV system is exempt from property taxes. Property value increases by 4% on average.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
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Get quotesSell excess electricity with net metering program
The net metering policy in Illinois has made it easier for its customers to sell unused electricity back to the grid instead of storing the energy in batteries. If your system includes a renewable electric generator, you may interconnect to your electric company’s grid and receive credit for unused electricity. Your PV system will pay for itself primarily through the net metering program by selling solar energy that you haven’t used into the commercial grid and gaining credits from the utility company for it. The credits later can be used to cover your electric bills.
In Illinois, credit value is equal to the full retail electricity price. If you have unused credits, they will roll over to the next month and can help offset future electricity usage. Make sure to sell any remaining credits to the grid as they will expire in one year.
Save up to $1,000 a year trading RECs
Illinois has a goal of producing 25% of its energy from sustainable resources by 2025, through the renewable portfolio standard (RPS). Installing a solar power system will help your state achieve its ambitious goal. In addition, there is a special program, rewarding those who go green: under the Adjustable Block Program(ABP), also known as Illinois Shines, you will be awarded one Solar Renewable Energy Credit (SREC) that can be sold for each megawatt-hour (MWh) of energy which your PV system produces, allowing your system to payback itself. With the inquiry of the program, you must be waitlisted to qualify for the Adjustable Block Program.
Raise your property value but not your taxes
Illinois’ Special Assessment for Solar Energy Systems ensures any new PV system installed in Illinois will not be part of your property tax. However, such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report. If you want your solar energy property valued in this manner, file the State of Illinois PTAX-330 property tax form.
4%
this is how much solar panels increase the value of your house
What are solar incentives, and why do they exist?
Think of solar incentives as discounts and cash-back offers from the government, designed to make putting solar panels on your roof or business a lot cheaper. They exist because governments want more people to switch to clean energy, and they know that the biggest hurdle is the cost. Installing solar panels can be expensive, and incentives are there to help you overcome that initial expense.
So, what kind of financial help are we talking about? One common type is a tax credit. This means that when you file your taxes, you can subtract a certain amount from what you owe, directly reducing your tax bill. In some cases, you might even get money back if the credit is more than you owe. Another popular incentive is a rebate. This is like getting a cash refund after you've bought and installed your solar system. You might get a check in the mail, or the rebate could be applied directly to the cost of your system, lowering the upfront price.
Then there are things called feed-in tariffs. These are a bit different. They let you sell any extra electricity your solar panels produce back to the power company. This means you can earn money by generating clean energy, which can help pay off the cost of your system even faster.
Why do governments offer all this money? Well, they know that switching to solar is good for everyone. It helps reduce pollution, which is better for our health and the environment. It also creates jobs in the solar industry, boosting the economy. Plus, by using less energy from traditional power plants, we become less dependent on foreign oil and gas, which makes our energy supply more secure.
For you, the person putting solar on your home or business, it means you can save a lot of money in the long run. Not only do you get help paying for the system itself, but you also save on your monthly electricity bills. And with feed-in tariffs, you can even earn money. Basically, solar incentives make it easier and more affordable to go solar, so you can save money while helping the planet.
Is it the right time to go solar?
Okay, let's really dig into why now is a great time to think about solar power for your home.
Money matters
Your electricity bill as a hungry monster that keeps wanting more money. Well, solar panels help tame that monster. The price of solar panels has dropped a lot, so it's easier to afford them. At the same time, the price of regular electricity from the power company tends to go up. So, by making your own power, you're protecting yourself from those rising costs. Think of it as locking in a low energy price for the future. Also, there are often ways to get money back from the government. These incentives, like tax credits, help you pay less for your solar system. This makes it an even smarter money move.
Better technology
Solar panels are like little energy factories on your roof. And these factories are getting better at their jobs. They're more efficient, meaning they can turn more sunlight into electricity. So, you get more power from the same amount of sun. And what about when the sun isn't shining? That's where batteries come in. Batteries that store extra solar power are also improving. They can hold more power for longer, so you have electricity even at night or on cloudy days.
Helping the earth
When we burn coal or gas to make electricity, it pollutes the air. Solar power is clean. It uses the sun, which is a natural and endless source of energy. By going solar, you're helping to reduce pollution and make the planet healthier.
Your home's value
Think of solar panels as an upgrade to your home. Many people like homes with solar panels, so they're willing to pay more for them. This means your home could be worth more if you have solar.
Being more independent
Having solar panels gives you more control over your energy. You're less reliant on the power company, which can be a good feeling. If there's a power outage, you might still have electricity if you have a solar system with battery backup.
Solar works in many places
People often think that solar only works in very sunny places. But that is not true. Solar panels produce energy anywhere that the sun shines. Even on cloudy days, solar panels produce energy. And technological improvements are making panels even better at gathering energy in lower light situations.
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SHOP SOLAR PANELSYears of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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