Is Solar Worth It in Illinois in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Illinois homeowners — without the federal ITC.
Cost Per Watt
$3.10
installed
Electricity Rate
$0.160
per kWh
Payback (No ITC)
16 yr
current reality
Payback (With 30% ITC)
11.2 yr
hypothetical
25-Year ROI
56%
return on investment
Incentive Breakdown — Illinois
Available incentives for a typical 7kW residential solar system in Illinois
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneIllinois does not offer a state tax credit for solar installations.
SREC Market
~$420/yrIllinois Shines (adjustable block program) provides SRECs valued at approximately $60/SREC for residential systems.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Low-Income Program
AvailableIllinois offers programs to help low-income households access solar energy.
Key Incentives: Property tax exemption for solar; SREC market value ~$420/year; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Illinois
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC
- $0
- Net Cost
- $21,700
- Annual Savings
- $1,354/yr
- Payback Period
- 16 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC (30%)
- -$6,510
- Net Cost
- $15,190
- Annual Savings
- $1,354/yr
- Payback Period
- 11.2 years
Impact: Without the federal ITC, Illinois homeowners face a 4.8-year longer payback period — paying $6,510 more out of pocket.
Net Metering Policy — Illinois
How Illinois compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Illinois requires full retail net metering for systems up to 2 MW under the Future Energy Jobs Act.
Cost Per Watt Benchmark — Illinois
Illinois Average
$3.10/W
National Average
$3.05/W
Typical 7kW System
$21,700
Illinois's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Illinois breaks even in 16.0 years. With the former 30% ITC, payback would drop to 11.2 years.
Without Federal ITC
16
years to break even
With Former 30% ITC
11.2
years to break even
Production Details
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