✅ Federal Incentives
30% Investment Tax Credit (ITC) for residential, commercial, agricultural, and nonprofit solar projects
MACRS plus bonus depreciation for commercial and farm systems
IRA Direct Pay allows nonprofits and tax-exempt entities to receive the federal incentive as a cash reimbursement
✅ State Incentives
⚡ Illinois Shines (Adjustable Block Program)
Provides upfront incentives for solar installations based on the number of Solar Renewable Energy Credits (SRECs) the system is expected to produce
SRECs are sold to utilities to help them meet their Renewable Portfolio Standard requirements
Incentive amount depends on system size, location, and customer type (residential, small business, nonprofit)
SREC contracts typically last 15 years and can reduce upfront cost significantly
⚡ Illinois Solar for All (ILSFA)
Offers special solar incentives for income-qualified households, nonprofits, and public facilities
Participants receive solar with no upfront cost and guaranteed savings on electricity bills
Focuses on equity and environmental justice communities across the state
⚡ Property Tax Exemption
Solar energy systems are exempt from increases in property tax assessments
Applies to residential and commercial installations
✅ Utility & Local Incentives
⚡ Net Metering
Investor-owned utilities like ComEd and Ameren are required to offer full retail net metering until a participation cap is met
Once the cap is reached, systems may be transitioned to a successor tariff with different crediting mechanisms
Credits roll over month to month and can offset both usage and delivery charges, depending on the provider
⚡ Municipal and Co-op Utilities
Not all municipal and electric cooperative utilities are required to offer net metering
Incentives and interconnection policies vary and should be checked with the specific provider
✅ Policy & Standards
⚡ Renewable Portfolio Standard (RPS)
Illinois requires that 40% of the state’s electricity come from renewable sources by 2030
The RPS includes carve-outs for distributed generation (like rooftop solar) and for Solar for All participation
⚡ Interconnection Standards
The state has established clear, tiered interconnection procedures based on system size
Simplified process for small systems (up to 25 kW), with more detailed review for larger systems
✅ Nonprofit & Commercial Incentives
Nonprofits are eligible for 30% IRA Direct Pay
Nonprofits and public agencies can also apply through the Illinois Solar for All program for no-cost solar installations
Commercial systems benefit from SREC sales through Illinois Shines as well as MACRS and bonus depreciation