The federal residential credit is gone, but Illinois still offers some of the strongest solar programs in the Midwest. Here's what's available in 2026.
Illinois' state solar incentive pays for the renewable energy credits (RECs) your system is expected to produce over a 15-year contract.
Incentives are paid through an Illinois Shines Approved Vendor, based on your system size and expected production.
For small residential systems approved on or after June 1, 2026, 50% of the REC incentive is paid at energization and the rest is paid in equal quarterly installments over the following six years.
For the 2026-27 program year, customer-owned small systems that will not receive a federal tax credit can qualify for an additional $20-per-REC adder.
Incentive blocks and prices change by program year, so your proposal will show the value available when your application is submitted.
Solar customers who interconnect on or after January 1, 2025 receive supply-only net metering: excess energy sent to the grid earns credits against the supply portion of the bill.
Credits offset supply (and, where applicable, transmission) charges — not delivery charges or taxes and fees.
You can choose credits in kWh or dollars, and for customers interconnected on or after January 1, 2025 the credits roll forward and do not expire annually.
Customers who interconnected by December 31, 2024 keep full retail-rate net metering for the life of the system (up to 30 years) unless they take the generation DG rebate.
Because exported energy is worth less than before, batteries and right-sized systems that use more of their own solar matter more for new installs.
Illinois homeowners can ask their county assessor to value their home as if it had a conventional energy system instead of solar, so the solar doesn't increase their assessment.
Filed with your chief county assessment officer on form PTAX-330.
The assessor applies the lower of the two values while the solar system remains in use.
If you stop using the system, you must notify the assessor by certified mail within 30 days.
The 30% residential clean energy credit (Section 25D) ended for homeowner systems completed after December 31, 2025. Commercial solar can still qualify for the Section 48E credit on a tight timeline.
Homeowners: a system installed in 2026 is not eligible for the Section 25D credit. Installation had to be completed by December 31, 2025.
Businesses: solar projects that began construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify for the Section 48E clean electricity investment credit.
Third-party-owned systems (leases and PPAs) are commercial property for the owner, which is why lease offers may still reflect federal incentive value.
Cox Solar Solutions is not a tax advisor — confirm eligibility with a qualified tax professional.
Incentive programs, block pricing, and tariffs change. Figures above reflect official program materials as of October 2026. Your proposal will reflect the programs available when your application is filed. Cox Solar Solutions does not provide tax advice. Learn more about net metering and the federal tax credit status.
FAQ
Incentive Questions
Can I combine Illinois Shines with the ComEd or Ameren rebate?
Yes. The utility Distributed Generation Rebate is separate from Illinois Shines REC payments, so qualifying systems can receive both.
Who receives the Illinois Shines payment?
Illinois Shines contracts are held by an Approved Vendor, which receives REC payments from the utility. How the incentive value reaches you — as a price reduction or a pass-through payment — is spelled out in your disclosure form and contract.
Is there an Illinois state solar tax credit?
Illinois does not offer a state income tax credit for residential solar. The state's support comes through Illinois Shines, the utility DG rebate, and the property tax alternate valuation.
Free solar quote
See Exactly Which Incentives You Qualify For
See your system design, Illinois incentives, and estimated savings — no pressure, no obligation.
