Illinois may be famous for Chicago’s skyline, deep-dish pizza, and unpredictable weather, but the Prairie State is also becoming a major hub for solar power adoption.

While winters can be cloudy, Illinois still receives plenty of sunshine throughout the year — enough to make solar panels a cost-effective, money-saving, and eco-friendly choice for homeowners and businesses.

Whether you’re in Chicago, Springfield, Naperville, or a small town, solar energy in Illinois is not just about going green — it’s about slashing your electricity bills, boosting property value, and taking advantage of generous state and federal incentives.

In this 2025 guide, we’ll break down:

Why going solar in Illinois makes sense

Average solar panel costs in Illinois

Illinois-specific solar incentives & rebates

Step-by-step process to install solar

Financing and loan options for Illinois residents

FAQs about solar energy in Illinois

How to get started today

Many people assume solar is only for sunny states like Arizona or California. But Illinois is proof that even in a Midwest climate, solar panels work extremely well.

Here’s why:

1. Electricity Costs Keep Rising – Illinois residents have seen consistent increases in utility rates over the past decade. Solar locks in your own “energy rate” for decades.

2. Net Metering Saves You More – Thanks to Illinois’ net metering law, you can sell excess power back to the grid at retail rates, reducing your monthly bill even further.

3. Generous Incentives – Illinois has some of the most attractive state-level solar programs in the country.

4. Environmental Impact – Switching to solar helps reduce reliance on fossil fuels, lowering your carbon footprint significantly.

5. Energy Independence – No more worrying about utility price hikes or blackouts; solar plus battery storage can keep your home running.

In 2025, the average cost of residential solar panels in Illinois ranges from $2.60 to $3.20 per watt before incentives.

For a typical 6 kW system (enough for many average homes), you can expect:

Gross Cost (before incentives): $15,600 – $19,200

Federal Solar Tax Credit (30%): -$4,680 – $5,760

Net Cost (after federal credit): $10,920 – $13,440

Additional Illinois incentives can drop costs even further.

Payback Period:

Most Illinois homeowners see a payback period of 7–10 years, after which solar power is essentially free for the remaining 15–20 years of the system’s life.

Illinois offers multiple financial incentives that make solar even more affordable.

Value: 30% of your solar installation cost

Availability: Nationwide through 2032

How it works: You can deduct 30% of the total cost from your federal taxes.

What it is: A state program that pays you for the renewable energy your system generates in the form of Solar Renewable Energy Credits (SRECs).

How it works: You earn credits for your solar production, which you can sell to utilities.

Savings: Can be worth thousands of dollars over the first few years.

Target audience: Low-income households

Benefit: Reduced or no upfront costs for solar installation

Goal: Make solar accessible to all income levels.

Utility companies: Ameren Illinois, ComEd, and MidAmerican Energy participate.

How it works: Any excess electricity you generate is credited to your account at retail rates.

Result: Lower electric bills, especially in summer months.

Solar panels don’t increase your property tax even though they raise your home’s value.

If you’re ready to make the switch, here’s the recommended process:

Step 1: Evaluate Your Home’s Solar Potential

Check your roof’s orientation (south-facing is best).

Ensure minimal shading from trees or nearby buildings.

Consider roof age — replacing an old roof before installing solar can save money later.

Step 2: Get Multiple Quotes

Compare at least 3 different installers.

Check if they are NABCEP-certified and have Illinois-specific experience.

Step 3: Understand Your Financing Options

Cash purchase

Solar loan

Solar lease or Power Purchase Agreement (PPA)

State and federal incentives

Step 4: Apply for Incentives

Work with your installer to submit paperwork for Illinois Shines, net metering, and federal tax credit eligibility.

Step 5: Install Your System

Most residential installations take 1–3 days.

Your utility will inspect and connect your system to the grid.

Step 6: Monitor and Maintain

Most systems require minimal maintenance.

Use monitoring apps to track energy production.

The average Illinois household uses about 8,000–10,000 kWh per year. With the current average utility rate of around 15 cents/kWh, that’s about $1,200–$1,500/year in electricity costs.

A properly sized solar system can:

Reduce your bill by 80–100%

Save $25,000–$35,000 over 25 years

Increase your home’s value by 4–6%

Q: Do solar panels work in Illinois winters?

A: Yes! Even in winter, panels produce electricity as long as sunlight hits them. Cold temperatures can actually improve panel efficiency.

Q: What happens if I produce more electricity than I use?

A: Thanks to net metering, your utility credits your bill for excess production.

Q: Can renters in Illinois get solar?

A: Yes, through community solar programs that let you subscribe to a share of a solar farm’s output.

Q: Will solar increase my property taxes?

A: No — Illinois law exempts solar from property tax increases.