Last updated: April 13, 2026
Disclaimer: This article is for general educational purposes only based on publicly available data as of April 2026. Incentive programs, rates, and eligibility requirements change frequently. Always verify current program status directly with the Illinois Power Agency (ipa.illinois.gov), Illinois Shines (illinoisshines.com), and your utility before making any solar investment decisions. This is not financial, legal, or tax advice.
While the federal tax credit expired at the end of 2025 and California’s solar market is still absorbing the NEM 3.0 ruling, Illinois moved in the opposite direction. The Illinois Shines SREC program is still paying residential solar owners an upfront lump sum covering 25–40% of a typical system cost. The state’s proposed 2026-27 rates are 34–43% higher than current rates. The utility rebate for installing a smart inverter is $300 per kilowatt — on top of the SREC payment. And the low-income Illinois Solar for All program remains one of the strongest income-qualified solar programs in the country.
This guide covers every active solar incentive available to Illinois homeowners in 2026, verified against primary sources: the Illinois Power Agency, Illinois Shines program documentation, and Citizens Utility Board rate guides. No estimates presented as facts. No expired programs listed as active.
What Solar Incentives Are Available in Illinois in 2026?
Illinois Solar Incentives Summary Table 2026
| Incentive | Type | Amount | Status | Who Qualifies |
|---|---|---|---|---|
| Federal Solar ITC (Section 25D) | Federal tax credit | 0% — expired December 31, 2025 | Expired for homeowner purchases | PPA/lease systems may qualify via Section 48E (third-party owner, construction by July 4, 2026) |
| Illinois Shines SREC Program | State SREC incentive (upfront lump sum) | $75.48/REC (Group A, under 10kW); $69.78/REC (Group A, 10-25kW) — 2025-26 rates, effective June 2, 2025. Typical total: $7,000–$14,000 for residential systems covering 25–40% of system cost | Active — 2025-26 program year open. New 2026-27 rates proposed higher (34-43%). Verify current block availability at illinoisshines.com | Illinois homeowners in ComEd, Ameren, or MidAmerican territory. Must use an IPA-approved vendor. Systems up to 25 kW. |
| Illinois Solar Property Tax Exemption | Property tax exemption | Solar system assessed same as conventional HVAC — no added property tax. Typical savings: $200–$500/year depending on county tax rate and system value | Active, permanent (35 ILCS 200/10-10) | All Illinois residential solar owners. File PTAX-330 with county assessor. |
| ComEd / Ameren DG Smart Inverter Rebate — Solar | Utility upfront rebate | $300/kW DC installed. Example: 5 kW system = $1,500; 8 kW system = $2,400 | Active — verify current terms at comed.com or ameren.com. Note: accepting this rebate locks you into supply-only net metering regardless of prior grandfathered status | ComEd and Ameren residential customers installing solar with a smart (grid-interactive) inverter |
| ComEd / Ameren DG Smart Inverter Rebate — Battery Storage | Utility upfront rebate | $300/kWh battery storage capacity. Example: 10 kWh battery = $3,000. ComEd customers must enroll in BESH rate; Ameren customers must enroll in Peak Time Rewards to qualify for battery rebate | Active — verify current terms with utility. Taking the battery rebate enrolls you in VPP dispatch requirements | ComEd and Ameren residential customers installing battery storage with smart inverter, on qualifying supply plans |
| Illinois Net Metering — Supply-Only (new installs from Jan 1, 2025) | Utility bill credit | Credits at supply rate only (~$0.068/kWh ComEd, ~$0.08/kWh Ameren). Does not offset delivery charges or fixed fees. Credits carry forward month-to-month for life of system | Active for all new systems interconnected from January 1, 2025 onward | ComEd, Ameren, MidAmerican residential customers. Rural co-ops and municipal utilities may have different or limited net metering policies — verify with your utility |
| Legacy Full Retail Net Metering (grandfathered) | Utility bill credit | Full retail rate credit (~$0.14-0.16/kWh ComEd). Offsets supply and delivery charges | Active for existing customers interconnected before January 1, 2025 who did not take DG rebate. Protected for life of system | Homeowners with solar interconnected before January 1, 2025 who did not accept the DG Smart Inverter Rebate. Grandfathered status lost if system capacity expanded (ComEd: new interconnection application required; Ameren: nameplate capacity doubled) |
| Illinois Solar for All (ILSFA) | Low-income state solar program | No upfront cost. ~$25/month for 15 years ($4,500 total), then system transfers to homeowner. Guaranteed minimum 50% savings on value of energy produced. Average annual savings exceed $1,000 | Active — single-family capacity reached in 2025; contact approved vendor to join waitlist for 2026 cycle. Verify availability at illinoissfa.com | Illinois homeowners with gross income ≤80% Area Median Income for their county. Must use an ILSFA-approved vendor. Priority given to environmental justice communities. |
| Community Solar — Illinois Shines | Community solar subscription | Bill credits for solar production from an off-site array. Typically 5–15% discount on subscribed energy. No panels on your property required | Active — find approved vendors at illinoisshines.com | Illinois renters, homeowners without suitable roofs, and anyone in ComEd or Ameren territory. Low-income community solar also available through ILSFA |
| CRGA Virtual Power Plant Program (new January 2026) | Battery performance/enrollment program | Enables residential battery owners to receive the $300/kWh DG storage rebate by enrolling in scheduled-dispatch VPP. Program must launch by June 30, 2026 | New — established by CRGA signed January 8, 2026. Verify launch status with ComEd or Ameren | Illinois residential battery owners willing to participate in utility-scheduled dispatch events to help balance the grid |
| City of Chicago Green Permit & Solar Express Program | Local permitting incentive | Priority permit review + reduced fees (Green Permit); expedited approval + $100 savings (Solar Express) | Active for Chicago residents only | Chicago homeowners installing solar. Contact Chicago Department of Buildings at chicago.gov/bldgs for current eligibility and application requirements |
Federal Solar Investment Tax Credit (ITC) — EXPIRED
The federal solar tax credit (Section 25D) expired December 31, 2025 for homeowner-purchased or financed systems under the One Big Beautiful Bill Act. For most Illinois homeowners installing in 2026, there is no federal credit available.
One exception: solar systems installed through a Power Purchase Agreement (PPA) or lease may still allow the installer to claim the Section 48E business tax credit, potentially reflected as lower monthly rates. Confirm with any installer quoting a PPA or lease whether their 48E eligibility has been verified in writing. The construction must begin by July 4, 2026 and the system must be placed in service by December 31, 2027.
Illinois Shines — SREC Incentive Program
Illinois Shines (officially the Adjustable Block Program) pays residential solar owners for the Renewable Energy Credits (RECs) their system is projected to generate over 15 years — delivered as a lump sum shortly after installation. One REC equals one megawatt-hour of solar generation. A typical 7 kW residential system generates approximately 9 RECs in year one, and around 130 RECs total over the 15-year contract.
Current 2025-26 rates (effective June 2, 2025, set by the Illinois Power Agency):
- Group A (ComEd territory & rural co-ops), under 10 kW: $75.48/REC
- Group A, 10–25 kW: $69.78/REC
- Group B (Ameren territory), under 10 kW: lower — verify at illinoisshines.com
Solar Property Tax Exemption
Under Illinois law (35 ILCS 200/10-10), county assessors must assess the value of a solar energy system at the same value as a conventional heating and cooling system. In practice, this means that a solar installation — which typically adds $10,000–$25,000 or more to a home’s market value — does not increase property tax assessment. The added solar value is effectively excluded.
With Illinois’s average property tax rate of approximately 2.07%, exempting a $20,000 system from assessment saves a typical homeowner around $400 per year, or more than $10,000 over a 25-year system lifespan.
Distributed Generation (DG) Smart Inverter Rebate — Solar
ComEd and Ameren residential customers who install solar with a smart (grid-interactive) inverter receive an upfront cash rebate of $300 per kilowatt of DC solar capacity installed. This rebate is paid directly to the customer and does not require participation in Illinois Shines.
Example payments: 5 kW system = $1,500 / 8 kW system = $2,400 / 10 kW system = $3,000. This rebate can be combined with the Illinois Shines SREC payment for maximum upfront savings.
Distributed Generation (DG) Smart Inverter Rebate — Battery Storage
In addition to the solar rebate, ComEd and Ameren residential customers receive $300 per kilowatt-hour of battery storage capacity when installing a battery system with a smart inverter. A 10 kWh battery earns $3,000. A 5 kW solar system paired with a 10 kWh battery earns a combined $4,500 in DG rebates.
Net Metering — Supply-Only Credits (New Systems from Jan 1, 2025)
Illinois investor-owned utilities — ComEd, Ameren, and MidAmerican — are required by state law to offer net metering to residential solar customers. For systems interconnected from January 1, 2025 onward, credits apply to the supply portion of your bill only — not delivery charges or fixed fees.
What this means in practice: if your system exports 200 kWh in a month, you receive a credit of approximately $13.60 (at ~$0.068/kWh supply rate, ComEd territory) applied against your supply charges. Your delivery charges and customer fees remain due regardless. Credits carry forward month-to-month for the life of the system and are not zeroed out annually.
Illinois Solar for All (ILSFA)
Illinois Solar for All is a state-funded program that makes solar accessible to income-eligible households at no upfront cost. Eligible homeowners can have a solar system installed for a monthly payment of approximately $25/month over 15 years (total: ~$4,500), after which the system transfers to them. The program guarantees a minimum of 50% savings on the value of the solar energy produced — and many participants see annual savings exceeding $1,000.
The program serves three categories: single-family homeowners, renters and those without suitable roofs through community solar subscriptions, and nonprofit organizations and public facilities.
Community Solar — Illinois Shines
Illinois Shines includes a community solar option for residents who cannot install panels on their own property — renters, condo owners, those with shaded or unsuitable roofs, or anyone who prefers not to install. Subscribers receive a share of a large off-site solar array and earn credits on their monthly electricity bill based on the energy their share produces.
Community solar subscriptions typically provide a 5–15% discount on the energy produced by your subscription share compared to what you’d pay the utility. No installation, no maintenance, no roof penetrations. You can cancel if you move.
CRGA Virtual Power Plant (VPP) Program
The Clean and Reliable Grid Affordability Act (CRGA), signed by Governor Pritzker on January 8, 2026, establishes Illinois’ first Virtual Power Plant framework. Under the short-term VPP program, which must launch no later than June 30, 2026, residential customers with battery storage can enroll in the VPP to receive the $300/kWh distributed storage DG rebate in exchange for participating in utility-scheduled dispatch events.
In a VPP, the utility can briefly direct your battery to discharge to the grid during high-demand periods, helping stabilize grid reliability. In exchange, you receive the rebate and potentially ongoing compensation for your participation. This makes battery storage financially more attractive for homeowners who might not otherwise qualify for the standard DG rebate’s rate plan requirements.
Chicago Green Permit & Solar Express Programs
Chicago homeowners installing solar can take advantage of two permitting incentive programs administered by the City of Chicago Department of Buildings:
Green Permit Program: Qualifying solar and energy efficiency projects receive priority review status and reduced permit fees. Priority processing can meaningfully shorten installation timelines in a city where permitting backlogs are common.
Solar Express Permit Program: Expedited permitting for residential solar installations with a flat $100 savings on permit fees. Streamlined review process reduces administrative burden on homeowners and installers.
Illinois Shines — The SREC Program Explained
Illinois Shines is the state’s flagship solar incentive and the reason Illinois consistently ranks among the top states for residential solar economics despite losing the federal tax credit.
Here’s how it works: when your solar panels generate electricity, they also generate Renewable Energy Credits (RECs) — one REC per megawatt-hour of electricity produced. Illinois utilities are required by the state’s Renewable Portfolio Standard to purchase these RECs to meet their clean energy obligations. Illinois Shines is the state-administered program that facilitates this purchase and sets the price.
For residential systems, the program pays an upfront lump sum equal to the projected value of all the RECs your system is expected to generate over 15 years. That payment is made shortly after your system is energized and verified — you don’t wait 15 years to collect.
Current 2025-26 program year rates (effective June 2, 2025, published by the Illinois Power Agency):
- Group A (ComEd territory and rural electric co-ops): $75.48/REC for systems under 10 kW; $69.78/REC for systems 10–25 kW
- Group B (Ameren territory): rates are lower — verify at illinoisshines.com for your specific utility and system size
A typical 7 kW residential system in ComEd territory generates approximately 130 RECs over the 15-year contract period, producing a total SREC payment in the range of $9,000–$11,000 before any vendor fees. For most Illinois homeowners, this covers 25–40% of total system cost.
What to watch for in 2026-27: The Illinois Power Agency has proposed new rates for the 2026-27 program year (starting June 1, 2026) that are 34–43% higher than current rates, driven by the expiry of the federal tax credit and updated cost modeling. These rates are proposed — not yet finalized. If you’re planning a system, ask your installer to model both current and proposed rates so you understand how program year timing affects your economics.
The one thing most articles get wrong about Illinois Shines: The SREC payment goes to your Approved Vendor — the solar installer — not directly to you. Your contract with the installer determines how much of that value is passed through to you, as a price reduction, a direct payment, or a bill credit. Always ask your installer in writing: “What is the exact Illinois Shines payment amount, and is it guaranteed or estimated?” Some installers pass 100% through. Others deduct fees or describe it as an estimate. Your Disclosure Form should specify the amount — review it before signing anything.
How the DG Smart Inverter Rebate Stacks With Illinois Shines
The Distributed Generation (DG) Smart Inverter Rebate is a separate utility incentive — not part of Illinois Shines — that adds $300 per kilowatt of DC solar capacity on top of whatever the SREC program pays.
A 7 kW system earns a $2,100 DG rebate from ComEd or Ameren in addition to the Illinois Shines payment. A 7 kW system with a 10 kWh battery earns $2,100 (solar) + $3,000 (battery) = $5,100 in DG rebates, again on top of Illinois Shines.
The tradeoff: accepting the DG rebate locks you into supply-only net metering permanently. For any homeowner installing in 2026 (all of whom are on supply-only net metering anyway under the Climate and Equitable Jobs Act), this is no real tradeoff. For the small number of homeowners still grandfathered into full retail net metering from before January 1, 2025, taking the DG rebate permanently forfeits that grandfathered status. That decision is not reversible. Think carefully before accepting the rebate if you have grandfathered full retail net metering — the long-term value of full retail metering may exceed the $300/kW rebate depending on your system size and usage.
Net Metering in Illinois: What Changed in 2025
Illinois net metering went through a significant change on January 1, 2025 under the Climate and Equitable Jobs Act. For any system interconnected from that date forward, credits for exported solar electricity now apply to the supply portion of your bill only — not to delivery charges or fixed fees.
What this means in numbers: ComEd’s supply rate runs approximately $0.068/kWh through May 2026. If your system exports 200 kWh in a month, you earn roughly $13.60 in supply credits. Your delivery charges — which make up roughly half your total bill — are not offset. Under the old full retail metering, that same 200 kWh export would have been worth approximately $28.60.
That’s a meaningful reduction in the value of exports. It does not make solar uneconomical in Illinois — the Illinois Shines SREC program and the DG rebate more than compensate — but it does shift the math toward self-consumption. A system sized to closely match your daytime household consumption will outperform an oversized system designed to maximize exports.
If you installed before January 1, 2025: You are grandfathered into full retail net metering for the life of your system, as long as you haven’t accepted the DG Smart Inverter Rebate and haven’t made modifications that require a new interconnection application. If you’re in this group, do not expand your system capacity in ComEd territory without first checking whether that expansion will trigger a new interconnection application — it would terminate your grandfathered status.
Rural cooperative and municipal utility customers: ComEd, Ameren, and MidAmerican are required by state law to offer net metering. If you’re served by a rural electric cooperative or municipal utility, net metering may be limited or structured differently. Contact your utility directly before planning around net metering credits.
Property Tax Exemption — Automatic But Not Always
Illinois law (35 ILCS 200/10-10) requires county assessors to value a solar energy system the same way they value a conventional heating and cooling system. In practice, this means your solar installation does not increase your property tax assessment, even though it increases your home’s market value.
Solar additions typically increase home value by 3–5%. On a $300,000 Illinois home, that’s $9,000–$15,000 in added market value. At Illinois’s average property tax rate of approximately 2.07%, exempting that added value saves you roughly $185–$310 per year — or $4,600–$7,750 over a 25-year system lifespan.
How to claim it: In most Illinois counties, you need to file form PTAX-330 (Special Assessment for Solar Energy Systems) with your county assessor. This is not automatic in all counties — some require the filing before the exemption is applied. Check with your local assessor’s office after installation. Your solar installer should be familiar with this process.
What Illinois does not offer: There is no statewide solar sales tax exemption in Illinois. Solar equipment purchases are subject to the state’s standard sales tax rate. Several competing pages state otherwise — this is incorrect. Verify at the Illinois Department of Revenue (tax.illinois.gov) if you’re unsure.
Illinois Solar for All — If You Qualify, This Comes First
If your household income is at or below 80% of the Area Median Income for your county, Illinois Solar for All (ILSFA) should be the first program you explore — before Illinois Shines, before the DG rebate, before anything else.
ILSFA provides solar installation at no upfront cost. The program structure: you pay approximately $25/month for 15 years (totaling around $4,500), after which the system transfers to you at no additional cost. The program guarantees a minimum of 50% savings on the value of the solar energy produced. Many participants see annual savings exceeding $1,000 on their electric bills.
The program is funded through the state’s Renewable Portfolio Standard, not through property taxes, and is administered by the nonprofit Elevate under contract with the Illinois Power Agency.
Income thresholds vary by county and household size. As a rough benchmark: in the Chicago metro area (Cook County), the 80% AMI threshold is approximately $65,000–$75,000 for a two-person household in 2025-26. Use the eligibility tool at illinoissfa.com for your specific county and household size. Veterans’ benefits, disability payments, and certain other income sources may be excluded from the calculation.
Important in 2026: Single-family residential capacity was reached in 2025. You will need to join a waitlist for the 2026-27 program year cycle, which opens in June 2026. Contact an ILSFA-approved vendor now — not after June — to get on the list. The program administrator (Elevate) does not take direct applications from homeowners. You must go through an approved vendor.
For renters: ILSFA also offers a community solar track for income-eligible renters and others who cannot install panels on their own property. You subscribe to a share of an off-site solar array and receive bill credits. No roof required.
Community Solar — Solar Without the Roof
Any Illinois resident in ComEd or Ameren territory can subscribe to community solar through Illinois Shines — no roof, no installation, no ownership required. This includes renters, condo owners, homeowners with heavily shaded roofs, and anyone who prefers not to go through a full solar installation.
Community solar subscriptions typically provide 5–15% in savings on the energy covered by your subscription share compared to utility retail rates. You sign a subscription agreement with an approved vendor, your share of the community solar array’s output is credited to your utility account monthly, and you pay a lower rate for that portion of your electricity.
Find approved community solar vendors at illinoisshines.com/find-an-av-designee-or-subcontractor/.
Stacking Illinois Incentives: What a Typical System Looks Like
For a 7 kW system with a 10 kWh battery in ComEd territory, installed in spring 2026:
Illinois Shines SREC payment (estimated, 2025-26 rates, Group A): approximately $9,800 — paid upfront by Approved Vendor, passed through to homeowner as price reduction or direct payment
ComEd DG Smart Inverter Rebate — solar: $300 × 7 kW = $2,100 — paid directly to homeowner
ComEd DG Smart Inverter Rebate — battery: $300 × 10 kWh = $3,000 — paid directly to homeowner
Property tax exemption: approximately $250–$400/year ongoing savings (varies by county)
Total upfront incentive value: approximately $14,900, covering roughly 40–50% of a typical installed system cost of $30,000–$37,000 before incentives.
Federal tax credit: $0 for 2026 homeowner purchases (expired December 31, 2025).
No sales tax exemption in Illinois — budget for state sales tax on equipment at purchase.
This is an estimate using current published rates. Actual SREC payment depends on system production estimates, utility territory, and your specific contract with your Approved Vendor. Verify every figure with your installer before signing.
Important Dates and Timing for Illinois Solar in 2026
Illinois Shines program year: Runs June 1–May 31 annually. The 2025-26 program year ends May 31, 2026. The 2026-27 program year opens June 1, 2026 with new (proposed higher) rates. If you’re applying now, you’ll likely receive 2025-26 rates unless your project is submitted after June 1.
New 2026-27 rates: Proposed at 34–43% higher than current rates. Not yet finalized as of April 2026. Confirm finalized rates at illinoisshines.com or ipa.illinois.gov after June 2026.
Block capacity: Illinois Shines allocates capacity by program year. When a block fills, new applicants go on a waitlist. Waitlisted projects receive rates in effect when they’re approved. Current block status: verify at illinoisshines.com/project-status-and-capacity-dashboard/.
ILSFA waitlist: Contact an approved vendor now if you’re income-eligible. The 2026-27 cycle opens June 2026.
CRGA Virtual Power Plant: Authorized by legislation signed January 8, 2026. Must launch by June 30, 2026. Will allow battery owners to receive the $300/kWh DG storage rebate through VPP enrollment. Verify launch status with ComEd or Ameren.
Federal ITC (Section 25D): Expired December 31, 2025 for homeowner purchases. Section 48E for commercial/TPO systems: construction must begin by July 4, 2026.
How to Claim Illinois Solar Incentives
Illinois Shines SREC: You don’t claim this directly. Your solar installer (Approved Vendor) handles the application on your behalf. Your job is to choose an IPA-approved vendor, review your Disclosure Form carefully before signing, confirm the exact Illinois Shines payment amount and whether it’s guaranteed, and ask how and when the payment will be passed through to you. Find approved vendors at illinoisshines.com/find-an-av-designee-or-subcontractor/.
DG Smart Inverter Rebate: Applied for through your utility after installation. Your installer should handle this with you, but confirm it’s included in their scope before signing the contract. ComEd: (800) 334-7661. Ameren: (800) 755-5000.
Property Tax Exemption: File form PTAX-330 with your county assessor after installation. This requires documentation of the solar system. Your installer should be able to provide the necessary specifications. Some counties apply the exemption automatically based on building permits — confirm with your local assessor.
ILSFA: Contact an approved vendor through illinoissfa.com. Do not pay any vendor upfront — ILSFA is designed as a zero-upfront-cost program and legitimate vendors will not require payment before installation.
Community Solar: Sign a subscription agreement directly with an approved community solar vendor. No installation required on your end.
Is Solar Worth It in Illinois in 2026?
Yes — with important context.
Illinois sits above the national average electricity rate at approximately $0.16–$0.17/kWh for ComEd and Ameren residential customers, and those rates have risen roughly 20% since 2021 with further increases expected. The case for generating your own electricity strengthens as rates climb.
The Illinois Shines SREC program and the DG Smart Inverter Rebate together replace a significant portion of what the federal tax credit used to contribute. A homeowner who might have received $9,000 back from the federal government in 2025 can now receive $9,000–$14,000 from Illinois Shines plus another $1,500–$3,000 from the DG rebate — numbers that can actually exceed what the federal credit was worth for many systems.
The shift to supply-only net metering from January 2025 reduces the value of exports, but it doesn’t make solar uneconomical. Right-sized systems that maximize self-consumption are the correct 2026 strategy.
Payback periods for a well-designed Illinois solar system in 2026, using current incentives and supply-only net metering: approximately 4–8 years depending on system size, utility territory, and whether battery storage is included. That’s a shorter payback than most comparable states that have lost the federal credit without a comparable state replacement.
Illinois Solar for All participants, if income-eligible, see even faster effective payback — the guaranteed savings structure typically returns the total program cost within 2–3 years of savings.
For an overview of all available incentives in your state, see our solar incentives hub.
Frequently Asked Questions
Does Illinois have a solar tax credit? No. Illinois does not have a state income tax credit for residential solar installations. The main financial incentive is the Illinois Shines SREC program, which provides an upfront cash payment rather than a tax credit. Do not confuse this with states like New York or Arizona that offer explicit state tax credits.
Is there a sales tax exemption on solar equipment in Illinois? No. Illinois does not offer a statewide sales tax exemption on solar equipment or installation labor. Solar purchases are subject to the standard Illinois sales tax rate. Several sources online incorrectly state that an exemption exists — this is not accurate as of April 2026. Verify at tax.illinois.gov.
What is the difference between Illinois Shines and Illinois Solar for All? Illinois Shines (Adjustable Block Program) is available to all Illinois homeowners and provides an SREC-based upfront payment through a 15-year contract with a utility. Illinois Solar for All (ILSFA) is a subset of the broader program specifically for income-eligible households (≤80% AMI), offering much deeper incentives — effectively no-upfront-cost solar with guaranteed savings. If you qualify for ILSFA, that program offers significantly better terms than standard Illinois Shines.
How does the Illinois Shines payment reach me? Payment goes to your Approved Vendor (solar installer) first. Your installer then passes the value to you — typically as a reduction in your total system price. Your contract should specify the exact amount and whether it is guaranteed. Review your Disclosure Form carefully before signing.
Are Illinois SREC payments taxable income? Yes. The Illinois Shines SREC payment is considered taxable income by the IRS. You need to report it in the year you receive it. Consult a tax professional. You can elect to have taxes withheld, but the income must be reported regardless.
My utility is an electric cooperative, not ComEd or Ameren. Do these incentives apply to me? Illinois Shines is available to customers of all Illinois utilities, including electric cooperatives and municipal utilities — though some cooperatives have limited access due to restrictive interconnection policies. The DG Smart Inverter Rebate ($300/kW) is available only to ComEd and Ameren customers, not to most cooperatives or municipal utilities. Net metering policies also vary — contact your cooperative directly to confirm what crediting approach they offer.
Can I add a battery without going through Illinois Shines? Yes. Battery storage can be installed independently of any SREC program. However, to claim the DG Smart Inverter Rebate for the battery ($300/kWh), you need to work with a ComEd or Ameren approved vendor and enroll in the correct rate plan (BESH for ComEd, Peak Time Rewards for Ameren).
When does the new 2026-27 Illinois Shines program year start? June 1, 2026. New rates take effect at that time. The IPA has proposed rates 34–43% higher than current 2025-26 rates for the 2026-27 program year, driven by the expiry of the federal tax credit. These rates are not yet finalized as of April 2026.
Disclaimer: This article is for general educational purposes only and reflects publicly available information as of April 2026, including Illinois Power Agency program documents, Illinois Shines 2025-26 Program Guidebook, ILSFA program materials, and Citizens Utility Board rate analysis. Incentive amounts, eligibility requirements, block capacities, and program availability change regularly. Always verify current program status directly with the Illinois Power Agency (ipa.illinois.gov), Illinois Shines (illinoisshines.com), Illinois Solar for All (illinoissfa.com), and your utility before making any solar investment decisions. This is not financial, legal, or tax advice.