Everything you need to know about solar SOLAR INCENTIVES, REBATES, & TAX CREDITS in Illinois
The state of Illinois is offering tons of helpful incentives to those who decide to install solar panels, whether at home or at work. As a consequence, there have been over 465 megawatts (MW) of solar energy installed in Illinois recently, and it’s bound to keep growing.
The most attractive solar incentive is definitely the Illinois Solar Renewable Energy Credit (SREC) Program. You can find more information on the solar incentives and available clean energy tax credits at the DSIRE program page for Illinois. (DSIRE is the Database of State Incentives for Renewables and Efficiency®.)
When installing and designing a solar energy system, you have to think about the amount of paperwork involved to get it all up and running. But don’t worry! Our efficient and helpful Client Services team will take care of everything, every step of the way. You can find out more by clicking on this Solar One USA link.
Available Incentives for Switching to Solar Energy in Illinois
Solar Credits & Rebates for Illinois
The state of Illinois has been very committed to switching to sustainable and renewable energy. As a matter of fact, an Illinois renewable portfolio standard (RPS) has been drafted and it explains that it aims to increase the renewable energy production by 25% by the year 2025. To assist with this goal, the state of Illinois has been offering some incredible incentives to make the cost of solar in Illinois more affordable.
More Solar Incentives for Illinois
Unfortunately Illinois does not offer a tax credit for installing solar systems as of yet from the State, but there is the federal tax credit and few tax incentives that are worth taking advantage of when you install solar in Illinois. Read more below.
Solar Renewable Energy Credits (SRECs)
Illinois’ SREC Program is the top reason to install solar in Illinois. It gives solar energy owners the chance to make money for any extra energy their panels generate. Every megawatt hour (MWh) of solar energy generated by your system and sent to the utility grid is then converted into a credit that you can resell.
Solar Energy Property Tax Incentive
Illinois’ Special Assessment for Solar Energy Systems is an incentive that ensures that solar energy systems that are newly installed in Illinois are exempt from a property tax assessment. We surely are aware that a solar system on a property increases value but thankfully this law allows you to take advantage of solar energy without having to pay for it in property tax increases.
This privately owned manufacturing corporation employs 1800 employees in Illinois . This solar system was paid for using the company’s tax liability in conjunction with the Federal Tax Credit and Illinois Smart Inverter Rebate. As a result, the company began saving money as soon as the system was operational in June 2021. They have now contracted Solar One to build an additional 15 mW across all of their facilities taking advantage of the larger tax credit to pay for their solar system before it diminishes.
Illinois Net Metering
Under the Illinois net metering policy, utility companies in Illinois will credit you with any excess energy your solar system generates. This helps you “zero-out” your annual energy costs. Net metering enables you to collect credits when your solar energy panels are producing more energy than you use. You can then use those credits when your panels produce less than what you need (like during winter months).
Commercial Rebates for ComEd Customers
If you’re a ComEd Utility’s commercial customer, you may qualify for commercial and industrial rebates, which will help you decrease the cost of installing solar considerably.. Commercial solar panel systems that have a total capacity of up to 2,000 kilowatt (kW) qualify for a $250 rebate per each kW. That’s an incredible $25,000 rebate for a 100 kW system!
Federal Solar Tax Credit (ITC)
The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022.
Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes.
In 2023, the ITC will drop to 22%.
Combined with our proprietary energy savings program we provide Illinois businesses the most compelling solar ownership program out there. Contact us today to learn if our program is a fit for your organization.