Solar Incentives

The Illinois Shines adjustable block solar grant program pays you a large amount of cash when you go solar based on the size of your system. When combined with the Federal 26% Solar Tax Credit, it can slash your solar installation costs by up to 65% on an average-sized 6kW solar system!

Funds are paid out upfront based on the expected amount of solar renewable energy certificates (SRECs) your system is projected to produce over 15 years.

Your installer will apply for this grant on your behalf. This will decrease the quoted cost of your installed system, as installers usually take the Illinois Shines amount off your quoted install cost.

If you’re in Chicagoland and other places served by ComEd, you can expect to receive $65 for each SREC your solar system produces. An average 6kW home solar system cranks out about 120 SRECs over 15 years, netting a grant amount of almost $8,000.

The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for 26% of the cost of a solar photovoltaic (PV) system. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.)

The system must be placed in service during the tax year and generate electricity for a home located in the United States. There is no bright-line test from the IRS on what constitutes “placed in service,” but the IRS has equated it with the completed installation.

In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019 were eligible for a 30% tax credit.) The tax credit expires starting in 2024 unless Congress renews it.

There is no maximum amount that can be claimed.

When you have a solar system and are being billed for net metering, you are charged only for the net amount of energy you use during each billing period (i.e., the amount of energy we deliver to you minus the excess amount you send back to the smart grid). And, if you send more energy to the grid than we deliver, you can receive credits on your bill. You then use those credits and pull them back off the grid to power your home at night and on cloudy days. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs.