If you own a home in Illinois and you are researching solar, the incentive landscape has changed a lot over the past year. The federal tax credit that used to anchor most quotes is gone for new installations, but Illinois still runs two state-level programs and both major utilities still credit solar owners for the power they send back to the grid. This page walks through what exists today, who runs each program, and what to ask an installer before you sign anything. It does not try to estimate your savings or payback period; those numbers depend on your roof, your usage and your installer’s proposal, and SolarSiteIQ does not install or sell solar, so we are not the right source for a project-specific number anyway.
SolarSiteIQ connects Illinois homeowners with one qualified local installer for a free, no-obligation home assessment. We are an independent matching service, not a government program and not an installer, and none of the programs described below are affiliated with or endorsed by SolarSiteIQ.
Federal: the 25D credit is gone for 2026 installs
For years, the federal Residential Clean Energy Credit (Internal Revenue Code Section 25D) covered 30 percent of a qualifying system’s cost. Following its repeal in the One Big Beautiful Bill Act, the IRS states the credit is not available for expenditures made after December 31, 2025. Per the IRS’s Form 5695 instructions, an expenditure is treated as made when the original installation of the item is completed, not when a contract is signed or a deposit is paid, so a system installed in 2026 generally will not qualify even if it was ordered earlier. Ask your installer directly whether any part of your project could still fall under the old rules, and confirm the answer with a tax professional rather than taking a sales pitch’s word for it.
Some homeowners consider a lease or a third-party-owned (TPO) system instead of buying outright. In a TPO arrangement the company that owns the panels, not the homeowner, may be able to use a separate commercial tax credit, but the terms of what that is worth to you, if anything, vary by company and contract. Ask any installer who proposes a lease or power purchase agreement to explain in writing how ownership, maintenance and any tax benefit are allocated.
Illinois Shines (the Adjustable Block Program)
Illinois Shines, formally the Adjustable Block Program, is the state’s main solar incentive. It is run by Energy Solutions on behalf of the Illinois Power Agency, an independent state agency, and it pays for the renewable energy credits (RECs) a solar system generates rather than paying you directly as a rebate. In most residential cases, an Approved Vendor, typically your installer, handles the REC contract, and how that value reaches you depends on your vendor’s own terms. Illinois Shines publishes its program documents and REC pricing directly on its site, and those figures are adjusted by program year, so ask your installer for the current block price and have them show you where it is published rather than relying on a verbal estimate.
Illinois Solar for All
Illinois Solar for All, also overseen by the Illinois Power Agency, is a separate program aimed at income-eligible households, renters, nonprofits and public facilities in environmental justice or low-income communities. It is designed to lower or remove the upfront cost of on-site solar or a community solar subscription for households that qualify, generally based on area median income. Eligibility is checked directly through the program’s own site, illinoissfa.com. If your household might qualify, ask a prospective installer whether they participate in Illinois Solar for All and have them walk you through the program’s own eligibility tool rather than estimating informally.
Net metering and utility programs: ComEd and Ameren Illinois
Net metering lets a solar owner get credit on their bill for electricity their system sends back to the grid. The Illinois Commerce Commission oversees how ComEd and Ameren Illinois implement this under state law, and each utility publishes its own current terms.
- ComEd: net metering credits are tied to the time of generation, and ComEd also offers a distributed generation rebate that requires enrolling in a flexible rate option such as Hourly Pricing, per ComEd’s own solar generation page. See our ComEd customer page for details and ask your installer how your system’s output lines up with ComEd’s current rate options.
- Ameren Illinois: customers who applied after January 1, 2025 choose between two permanent crediting methods under Rider NM: usage netting, where excess generation offsets your usage directly, or monetary value netting, where it converts to a dollar credit, per Ameren Illinois’s own net metering page. Unused credits carry forward. See our Ameren Illinois customer page for more.
If you are served by a municipal utility or an electric cooperative rather than ComEd or Ameren, net metering and interconnection rules may differ; confirm directly with your provider.
Property tax treatment
Illinois property tax law provides an alternate valuation method for homes with a qualifying solar energy system (35 ILCS 200/10-5 et seq.), which is generally intended to keep a solar installation from increasing your home’s assessed value. Homeowners typically apply through their county assessor using Form PTAX-330. Ask your installer or a local tax professional whether this applies in your county and how to file.
What to ask an installer
- Which program’s documents are you showing me, and when was that figure published?
- Does my system or timeline still qualify for any federal tax benefit, and have you confirmed that with a tax professional?
- If you are proposing a lease or power purchase agreement, who owns the system and who receives any tax credit?
- What net metering plan or rider applies to my utility account today, and has that changed recently?
- Have you filed, or will you help me file, for the Illinois property tax alternate valuation?
When this last changed
The federal credit’s repeal took effect for installations after December 31, 2025. Illinois Shines runs on an annual program year with its own REC pricing updates. Ameren Illinois’s net metering crediting choice changed for new applicants starting January 1, 2025. Programs and rates can change again; always confirm current terms directly with the program or utility before you sign a contract.
Common questions
Is there still a federal solar tax credit in 2026?
No, not for expenditures made after December 31, 2025 for a homeowner-owned residential system. Confirm your specific situation with a tax professional.
Does SolarSiteIQ run Illinois Shines or Illinois Solar for All?
No. Both are state programs run by the Illinois Power Agency and its administrators. SolarSiteIQ is an independent service that connects homeowners with a local installer; we do not run or guarantee any incentive program.
Will going solar guarantee I save money?
No one can guarantee savings. Your results depend on your roof, usage, system size and financing. Ask your installer for a written, project-specific estimate rather than a general promise.
What is the difference between Illinois Shines and net metering?
Illinois Shines pays for the renewable energy credits your system generates. Net metering is a separate bill-crediting arrangement with your utility for excess electricity you send back to the grid. Most homeowners can use both.
Do municipal utility or cooperative customers get the same programs?
Not necessarily. ComEd and Ameren Illinois terms described here do not automatically apply to municipal utilities or cooperatives; check directly with your provider.
How do I get started?
Start with a free, no-obligation assessment through SolarSiteIQ at /solar-step-1/, and ask any installer you talk to the questions listed above before signing anything.
Ready to see what applies to your home? Start your free assessment and SolarSiteIQ will connect you with one qualified local installer, no obligation.
