Are you thinking of installing solar energy for your Illinois home or business in 2025?
The good news is that it has never been more affordable to go solar. Not only have prices for solar energy fallen by 43% in the past decade, but there are numerous discounts, rebates, and tax incentives available for solar energy in Illinois.
As you weigh your options, you should know about potential savings available through state and federal benefits.
Illinois Solar Power Rebates for 2025
The 2021 Climate and Equitable Jobs Act (CEJA) created or expanded numerous programs that reduce upfront costs for solar power in Illinois.
You may be eligible for one or more of the following programs:
Illinois Solar for All: This program provides upfront savings to income-eligible households, multifamily buildings, nonprofits, and public facilities. In many cases, the installation is completed at no out-of-pocket cost to the customer. More than 1,700 residential projects have benefited from Illinois Solar for All since 2021.
Illinois Shines: To date, Illinois Shines has supported more than 96,000 solar energy projects across the state. Eligible installations receive Renewable Energy Credit incentives to reduce costs.
Distributed Generation/Smart Inverter Rebate: This one-time upfront rebate provides $300 per kilowatt-hour of capacity for residential solar installations. For example, a 10kwH installation is eligible for a $3,000 rebate.
Energy Storage Rebate: Provides upfront savings of $300 per kilowatt-hour of clean energy storage capacity for residential customers. This can be combined with the Distributed Generation/Smart Inverter rebate for customers who are installing both solar and battery storage.
Savings and eligibility may vary. Please check with your installer to learn if your system is eligible for any incentives, rebates, tax credits, or discounts. There is no guarantee that your system will be eligible for any or all incentives.
Federal Savings for Illinois Solar in 2025
Federal benefits established and extended by the 2022 Inflation Reduction Act (IRA), may be stacked with state-level benefits from CEJA to help reduce costs even further.
Options include:
Residential Clean Energy Credit: Clean energy projects, including solar and storage, at your primary residence are eligible for a federal tax credit equal to 30% of the total installation cost.
Clean Electricity Production Tax Credit: Up to 2.8 cents per kilowatt-hour of power generated from clean energy sources.
Clean Electricity Investment Tax Credit: This program provides up to 30% in tax credits for the cost of clean energy installations.
Low-Income Communities Bonus Credit: Small-scale solar projects benefiting qualifying low-income households are eligible for up to 20% in additional tax credits.
There are more than 15 additional clean tax credits and modifiers available to businesses that meet certain requirements. View this guide from the Internal Revenue Service for more information.
What If I Can’t Fit Solar Panels on My Property?
Solar energy is accessible to all Illinois households and businesses who want to participate in the clean energy economy.
Illinois’ community solar program is the most accessible option for renters, buildings that cannot install solar panels due to size restrictions, HOA restrictions or structural concerns, or anyone who cannot currently afford their own installation.
Community solar installations are offsite solar arrays that allow customers to “subscribe” to a portion of the power generated by the panels. The power generated through that subscription is applied as a credit on customers’ energy bills.
Typical households can save as much as 20% on their power bill with community solar!
How Much Can I Save with Solar Energy in Illinois?
Savings will vary depending on the specifics of each installation, but solar energy is a sound investment, whether you are a resident or business owner.
Wheaton resident Jeff Gahris has solar panels on his home and experiences significant savings year-round, even during dark and snowy months. His residential installation covers about 75% of his energy needs, and a community solar subscription ensures the rest of his energy usage is clean.
For example, Magid Glove & Safety in Romeoville has an extensive solar & storage installation that has cut the company’s energy bills from $50,000 per month to $5,000 to $10,000 per month. Through multiple incentive and rebate programs, Magid Glove reduced the installation’s cost by more than 50%.
And across the state from Rockford to Peoria and beyond, community solar projects are bringing accessible savings to households and businesses who cannot install solar panels of their own.
This information is not legal advice. Please consult with your installer to determine what rebates and incentives may apply to your solar system.