Solar Financing in Illinois
Lease vs. Buy vs. PPA — Complete financing guide for IL homeowners
Urgent tax credit deadlines
- Section 48E phase-out completes December 31, 2027 — projects must be placed in service by then (515 days left).
⚠ The 30% Federal Solar Tax Credit (48E/ITC) expired July 4, 2026.
Selecting 30% ITC assumes you began construction before this deadline. Most new purchases no longer qualify.Learn about your options after the deadline →
Going solar in Illinois? With electricity rates averaging20.47¢/kWhand good solar resources, choosing the right financing option can save you $33,325 or more over 25 years. This guide breaks down every option available to Illinois homeowners.
Avg Rate
20.47¢
per kWh
Solar Resource
Good
IL
Typical System
8kW
residential
Payback
~10.5 yrs
estimated
Solar Incentives & Tax Credits in Illinois
Illinois homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that began construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025. Phase-out deadline: December 31, 2027 for placed-in-service.
30% of system cost
Illinois Shines (Adjustable Block Program)
Illinois Shines 2026-27 program year (started June 1, 2026). Authoritative block prices: ComEd (Group B) $80.77/REC, Ameren (Group A) $70.37/REC, blended average $75.57/REC for residential systems. A $20/REC Small DG Customer-Owned Adder applies to customer-owned cash/loan systems (<=10 kW AC) that do not claim the federal ITC (effective price $95.57/REC blended). Payment structure under Public Act 104-0458: 50% paid upfront as a lump sum, 50% paid quarterly over 6 years.
~$529/year (SREC, base); ~$669/year with Small DG Customer-Owned Adder
Solar Property Tax Exemption (Special Assessment)
Solar energy systems are assessed at a maximum of $0 for property tax purposes (35 ILCS 200/10-20).
100% property tax exempt
Illinois Solar for All
Low-income solar program providing no-cost or low-cost solar for income-qualified Illinois residents.
Income-qualified
Net Metering in Illinois
Illinois requires full retail net metering for systems up to 2 MW under the Future Energy Jobs Act and CEJA.
✓ Illinois offers a property tax exemption for solar installations, meaning your property taxes won't increase despite the added home value.
Compare Financing Options in Illinois
See how cash purchase, solar loan, lease, and PPA compare based on Illinois's average rates:
Solar Financing Comparison for Illinois
Based on 20.47¢/kWh electricity rate and a 8kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $24,000
- Monthly Savings
- $191/mo
- Tax Credit Eligible
- Expired
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $235/mo
- Net Monthly
- $-44/mo
- Tax Credit Eligible
- Expired
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $104/mo
- Net Monthly
- $87/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $1,677/yr
- Tax Credit Eligible
- No
⚠ The 30% Federal Solar Tax Credit (48E/ITC) expired July 4, 2026.
Selecting 30% ITC assumes you began construction before this deadline. Most new purchases no longer qualify.Learn about your options after the deadline →
Estimates based on average Illinois (IL) rates and system costs. For a personalized comparison,use our full financing calculator.
Lease vs. Buy vs. PPA in Illinois
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- The 30% federal tax credit expired July 2026 (post-48E residual only — see warning below)
- Property tax exempt in Illinois
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$33,325
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$26,125)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — Illinois
Is solar worth it in Illinois?
Yes, solar is an exceptionally strong investment in Illinois. With above-average electricity rates averaging 20.47¢/kWh and good solar resources, a typical 8kW system can offset most of your household electricity usage. The estimated payback period is 7-9 years, after which you enjoy more than a decade of largely free electricity. illinois requires full retail net metering for systems up to 2 mw under the future energy jobs act and ceja is the main policy factor to verify with your utility.
What solar incentives are available in Illinois?
Illinois residents can claim the 30% Federal Solar Investment Tax Credit (worth $7,200 on a typical 8kW system). The state also offers Illinois Shines (Adjustable Block Program), Solar Property Tax Exemption (Special Assessment), Illinois Solar for All. Illinois offers a property tax exemption, so your property taxes won't rise despite the added home value.
Should I lease, buy, or get a PPA in Illinois?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 8kW system in Illinois, that's about $7,200 back. Buying yields roughly $40,516 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $26,116). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in Illinois.
How much does a solar system cost in Illinois?
A typical 8kW residential solar system in Illinois costs approximately $24,000 before incentives. After the 30% Federal Tax Credit (~$7,200), the net cost drops to about $16,800. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. Illinois offers a property tax exemption, so your property taxes won't rise despite the added home value.
Does Illinois have net metering?
Illinois requires full retail net metering for systems up to 2 MW under the Future Energy Jobs Act and CEJA.
What is the solar payback period in Illinois?
The typical solar payback period in Illinois is approximately 7-9 years. With a net system cost of about $16,800 after the federal tax credit and annual electricity savings of roughly $2,063-$2,522 (based on 20.47¢/kWh), most Illinois homeowners see full payback within 9 years and enjoy 16+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on Illinois average rates and system costs. The 30% Federal Solar Investment Tax Credit expired July 4, 2026 for new residential installations. Actual savings vary by installer, equipment, roof, and utility policy.