Going Solar In Illinois: Incentives, Advocacy Groups & More

The state of Illinois has set a goal to reach 100% clean energy by 2050. Solar projects are going to be a big part of that transition.

8-27-25 Update: Federal tax incentives are constantly changing.  Please reference our Solar Tax Credits & Incentives page for the most current information.  The Federal Incentives information in this article was accurate prior to the One Big Beautiful Bill being signed into law.

What Solar Incentives Are Available in Illinois

Federal Incentives

The Solar Investment Tax Credit* (ITC): This tax credit is equal to 30% of the cost of the solar installation. This tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. The residential ITC ended on Dec. 31, 2025. The commercial/agricultural tax credit requires projects start by July 4, 2026. The eligible ITC amount is the sum of materials necessary for a solar installation, including solar panels, inverters, racking, electrical updates, installation, and energy storage of 5 kilowatt hours or greater.

Modified Accelerated Cost Recovery System (MACRS): This program governs the amount of time that businesses and agricultural operations must spread depreciation over for various pieces of equipment. For solar arrays, that time is 5 years. This accelerated depreciation allows for the tax benefits to be accrued earlier in the array’s productive life, shortening the time it takes for the array to pay for itself.

U.S. Department of Agriculture Rural Energy for America Program Grant (REAP): These grants are available for agricultural operations and rural small businesses which invest in renewable energy systems and are located in areas with a population of 50,000 or less. The grants can cover up to 25% of eligible costs of a solar project. (04/01/2026 Update – The Rural Energy for America Program will not be making further grant awards for the fiscal year. Visit the program website for full details.)

Illinois-Specific Incentives

Solar Renewable Energy Credits (SRECs): The Illinois Shines program provides incentives through the purchase of solar renewable energy credits based upon the electricity the solar array is expected to produce over 15 years. SREC value can offset as much as 40% of the project cost, but the rates vary depending upon block groups, geographic location, and utility.

Illinois property tax exemption: The state’s solar property tax exemption means your assessed valuation won’t increase, and thus your property taxes won’t increase, because of the value added through the installation of a solar array.

Distributed Generation Rebates: ComEd and Ameren offer an inverter rebate that can offset about 10% of the project costs.

Solar Related Organizations in Illinois

Illinois Solar Energy Association (ISEA): This non-profit founded in 1975 focuses on educating the public about solar and pushing for stable policies and regulations for solar development in Illinois. ISEA is a state resource for renewable energy-related policy developments, educational classes, events, and access to local renewable energy businesses.

Citizens Utility Board (CUB): Created by the Illinois General Assembly to be an advocate for utility customers, CUB is now a non-profit fighting for the rights of customers of investor-owned electric, gas, and telecom utilities in Illinois. They offer a toll-free hotline and free educational events, as well as working on legislation.

Notable Eagle Point Solar Illinois Builds

At Eagle Point Solar, we have extensive experience working on projects throughout much of Illinois including the Moline and Freeport areas. Here are a few of the major projects we have worked on: