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N.W. Illinois | In Illinois the solar company installer is only as good as their person behind the desk helping you navigate the paperwork that is required to fulfill the applications for state of Illinois incentives, utility rebates, and proper billing. Miss out in a timely fashion or mess up on any of those things and you will lose out on thousands of dollars. You would be well advised to be knowledgeable on what is available and to know the timelines that these incentives require.
When pricing out an array see what installers tell you on any of the following below but especially when it comes to SREC's commissions to Carbon Solutions, SREC payments for system over 25 kW, and banking your kWh production in peak production months and your costs when pulling from the grid later.
These solar programs are available in Illinois for 2026.
State-Level Incentives
Illinois Shines (Adjustable Block Program): This program provides payments in exchange for Solar Renewable Energy Credits (SRECs) generated by your system over 15 years. For a typical 8.5 kW system, this can result in a lump-sum payment of $11,000–$12,000 roughly one year after installation.
Illinois State Solar Tax Credit: As of 2026, Illinois offers a state tax credit equal to 25% of the installed cost, capped at $10,000 per taxpayer.
Property Tax Exemption: State law ensures that the added value a solar system brings to your home is 100% exempt from property tax assessments, so your taxes won't increase because of the installation.
Sales Tax Exemption: Solar energy equipment is exempt from Illinois' state sales tax, reducing your initial purchase price.
Utility Rebates and Billing
Distributed Generation (DG) Rebates:
ComEd: Offers a rebate of $300 per kW of solar capacity and $300 per kWh of battery storage.
Ameren Illinois: Also provides a smart inverter rebate of $300 per kW.
I'm not aware of electrical Co-Op rebates if you have them for a supplier.
Be aware that with the SREC payments Carbon Solutions Group (CSG) typically charges a commission fee of 7–10% of the total Solar Renewable Energy Credit (SREC) contract value. This fee is generally deducted at the time the SRECs are sold rather than being an upfront cash payment. There is also an application fee of $20 per kW in Illinois.
Performance Collateral (Escrow)
These are mandatory program requirements, not "commissions" kept by CSG, but they are withheld from your initial payment:
Utility-Held Collateral: 5% of the total contract value is withheld by the utility (ComEd or Ameren) for the 15-year term to guarantee energy production.
Additional Collateral: CSG often withholds an additional 2.5% as a standard safeguard for small and large distributed generation applications.
When your first incentive payment arrives, expect it to be reduced by approximately 15–20% of the gross value to account for the commission, application fees, and the required 7.5% total collateral.
Payment Disbursement Schedule
If your system exceeds 25 kW AC, it follows a specific "Large DG" payment structure rather than the front-loaded lump sum given to smaller residential systems:
Year 1 (Initial Payment): You receive 15% of the total 15-year contract value. This is paid approximately one year after the system is energized and verified.
Years 2 through 7 (Remaining Balance): The remaining 85% of the contract value is distributed equally in quarterly payments over the next six years.
Excess Electricity Sent to the Grid
This is where the rules changed on January 1, 2025: Smart Solar Billing (Net Metering): For systems installed after January 1, 2025, excess energy sent to the grid is credited at the "supply-only" rate (roughly 6–8¢ per kWh) rather than the full retail rate.
New Systems (Post-2024): You only receive credits for the supply portion of your bill for the energy you send back. You still must pay the full delivery charges, taxes, and fees for every kilowatt-hour (kWh) you pull from the grid later (e.g., at night), even if you exported an equal amount during the day. One-third to one-half of the typical electric bill in Illinois consists of "Delivery" charges, taxes, and state-mandated fees. It adds up quickly.
Legacy Systems (Pre-2025): If your system was operational before 2025, you are grandfathered into "Full Retail" net metering. You receive a 1:1 credit that offsets the supply, delivery, and most taxes/fees on your bill.
Edited by mounder 3/23/2026 14:21
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Solar company Recommendation Western Illinois