IL incentive guide
Illinois solar incentives in 2026
Last updated · every IL program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Illinois right now is Illinois Shines (Adjustable Block Program). Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Illinois this year, there is no federal credit. That is a roughly $8,160 swing on an $27,200 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Illinois offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | Illinois Shines pays substantial upfront SREC value, often thousands per residential system |
| SREC market | Yes | Illinois has a solar renewable energy certificate market you can sell into. |
| Sales tax exemption | No | — |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Illinois solar tax credit
There is no Illinois solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What Illinois does offer on the tax side is property tax exemption, covered below.
Illinois solar rebates and grants
Illinois Shines pays substantial upfront SREC value, often thousands per residential system. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it. Illinois does have a solar renewable energy certificate (SREC) market, which pays per megawatt-hour your system generates rather than up front.
Illinois Shines (Adjustable Block Program) pays substantial upfront incentives for solar renewable energy credits, often worth thousands of dollars on a residential system. Verify current block pricing.
Net metering and export rates in Illinois
Illinois ended full retail net metering for new customers in 2025; exports are now credited at the supply portion of the rate, with a distributed-generation rebate available in ComEd and Ameren territory to offset the change.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Illinois home at an assumed $0.16/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Illinois costs roughly $20,800–$27,200 installed before incentives, producing about 10,160 kWh a year and saving around $1,339 in year one — a simple payback near 16–20 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Illinois solar tax credits worth in 2026?
Illinois offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is property tax exemption, which lower cost indirectly rather than paying you back.
Does Illinois have solar rebates?
Yes. Illinois Shines pays substantial upfront SREC value, often thousands per residential system. Rebate programs in IL are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there an Illinois solar property tax exemption?
Yes. Illinois excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill.
What solar incentives are available in Illinois in 2026?
Illinois Shines (Adjustable Block Program) pays substantial upfront incentives for solar renewable energy credits, often worth thousands of dollars on a residential system. Verify current block pricing. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Illinois?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Illinois have net metering?
Illinois ended full retail net metering for new customers in 2025; exports are now credited at the supply portion of the rate, with a distributed-generation rebate available in ComEd and Ameren territory to offset the change. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Illinois?
Before incentives, a typical 8 kW system in Illinois runs roughly $20,800–$27,200. Illinois Shines pays substantial upfront SREC value, often thousands per residential system — the value depends on current funding. See our full Illinois cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: