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Discover the Power of Solar Energy in Illinois!

Welcome to Illinois, a state known for its dynamic landscapes, from the bustling streets of Chicago to the serene farmlands that stretch across its heartland, and an increasingly prominent player in the solar energy arena. With its mix of sunny days and a strong policy framework supporting renewable energy, Illinois offers fertile ground for solar power development. This opens up a vibrant opportunity for homeowners and businesses to tap into clean, renewable energy, dovetailing with the state?s goals for sustainability and reducing carbon emissions. Backed by compelling incentives to defray initial installation costs and a community that values environmental stewardship, Illinois is on a path toward a solar-powered renaissance. Learn how leveraging solar energy can illuminate your home, trim your energy expenses, and support a healthier environment right here in the Prairie State. Join us in capturing the sun?s infinite power and stepping into a brighter, more sustainable future in Illinois.

Solar State Incentives

Illinois State Solar Incentives

Community Solar Energy Sovereignty Grant Program
Illinois Commerce Department launches Community Solar Energy Sovereignty Grant Program to support solar projects in low-income, disadvantaged communities.
Illinois Solar for All Program
Illinois' Solar for All Program incentivizes low-income residents, non-profits, and public facilities to participate in solar projects, with no upfront cost for panels in selected areas.
Adjustable Block Program (Illinois Shines)
The Illinois Shines Program is a state-run solar incentive initiative aiming to develop new photovoltaic generation and community solar projects. The total annual capacity for the program is set to increase to 800 MW for 2024-2025.
Community Renewable Generation Project Rules
Illinois's community renewable generation projects follow Public Act 102-0662 (Climate and Equitable Jobs Act). Subscriptions and incentives are offered through specific programs.
Improvement Valuation of Commercial Solar Energy Systems
Illinois uses a specific formula for property tax valuation of commercial solar energy systems in counties with fewer than 3 million residents.
ComEd - Distributed Generation Rebates
Commonwealth Edison offers rebates for distributed generation installation and energy storage systems under Illinois law. Conditions apply based on ownership and demand class.
City of Chicago - Solar Zoning Policy
Chicago unveils solar zoning policy to clarify requirements and streamline process for solar PV systems, but retains right to reject approval.
City of Chicago - Solar Express Permit Program
The City of Chicago has streamlined the permitting and zoning process for rooftop solar PV systems, allowing for same-day permit approvals and reduced fees.
Illinois Solar and Wind Rights
Illinois law protects homeowners' rights to install solar energy systems, limiting associations' ability to deny or overly restrict such installations.
Illinois Municipal Electric Agency - Electric Efficiency Program
IMEA offers Electric Efficiency program incentives to members based on their electric purchases, with funds used for energy-saving improvements in Illinois facilities.
Statewide Renewable Energy Setback Standards
Illinois law limits wind turbine setback to 1.1 times the system height and permits municipalities to ban devices with a capacity of 100 kilowatts or more.
Renewable Energy and Energy Efficiency Project Financing
Illinois Finance Authority provides funding for commercial, non-profit entities, schools, and community colleges for projects including renewable energy, as long as they meet eligibility criteria.
Sales Tax Exemption for Wind and Solar Energy - High Impact Business
New wind or solar energy facilities in Illinois may qualify for High Impact Business status, granting them state sales tax exemptions on building materials. Requirements include job creation/retention.
City of Chicago - Small Business Improvement Fund
SomerCor administers the Small Business Improvement Fund for Chicago, providing grants for building improvements for commercial and industrial businesses.
Energy Efficiency in State Government
Illinois mandates LEED or equivalent certification for state-funded construction. The Green Buildings Act 2009 defines regulations for energy efficiency.
Interconnection Standards
Illinois Commerce Commission updated state's interconnection rules for distributed generation facilities, no longer requiring new construction from the utility for expedited review.
Net Metering
Illinois' Climate and Equitable Jobs Act removes net metering cap, raises system size cap to 5MW. Future Energy Jobs Act maintains basic net metering rules.
City of Chicago - Green Building Permit Programs
Chicago offers three programs to incentivize green building projects, providing perks such as expedited permit processes and reduced fees. Eligibility centers on LEED or Green Globe certification.
Renewable Portfolio Standard
Illinois' Climate and Equitable Jobs Act requires 50% renewable energy by 2040, with a goal of 100% clean energy by 2050. The state's renewable portfolio standard is met through state procurement of renewable energy credits.
Renewable Energy Resources Trust Fund
Illinois's Renewable Energy Resources Trust Fund, supporting renewable energy through grants and loans, will be repealed on December 31, 2021.
City of Chicago - Green Power Purchasing
Chicago achieved its goal of 20% renewable energy use in 2008 and aims to maintain that level. By 2025, the city plans to power all operations with 100% renewable energy.
Illinois Clean Energy Community Foundation Grants
The Illinois Clean Energy Community Foundation offers grants for projects that improve energy efficiency, develop renewable resources, and enhance wildlife habitats, with a focus on net zero energy performance.
Special Assessment for Solar Energy Systems
Illinois offers special assessment for solar energy systems for property tax purposes, requiring alternate valuation for solar-equipped property.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.