2025 Solar Incentives Guide
Updated January 2025

Chicago Solar Incentives& Rebates Guide

Maximize your solar savings with federal tax credits, Illinois Smart Inverter rebates, and ongoing SREC payments. Updated for 2025 ComEd net metering changes and current program availability with expert guidance every step of the way.

Important 2025 Changes for Chicago Solar

ComEd net metering changed on January 1, 2025. New solar customers now receive supply-only credits (~6¢/kWh) instead of full retail rate credits (~13¢/kWh). However, the new Smart Inverter rebate ($300/kW) helps offset this change. Systems installed before 2025 keep their original net metering terms.

Available Incentives

Stack Multiple Incentivesfor Maximum Savings

All programs have specific requirements and application processes that we handle for you.

Federal Residential Clean Energy Credit
30% of System Cost
Available Through 2032
Source: IRS Publication 5695
Updated: July 2025

The federal Investment Tax Credit (ITC) covers 30% of your total solar system cost, including installation.

Program Details

Applies to solar panels, inverters, batteries, and installation costs
No cap on credit amount for residential systems
Can be carried forward if you don't owe enough taxes in one year
Phases down to 26% in 2033, 22% in 2034, then expires for residential

Eligibility Requirements

Available to homeowners who own their solar system (not leased)

Illinois Smart Inverter Rebate
$300/kW DC + $300/kWh Battery
Limited Funding Available
Source: Illinois Power Agency
Updated: January 2025

ComEd and Ameren customers can receive rebates for qualifying smart inverter systems and battery storage.

Program Details

Smart inverter rebate: $300 per kW DC of solar capacity
Battery storage rebate: $300 per kWh of battery capacity
Must use IEEE 1547-2018 compliant smart inverters
Professional installation required by licensed contractor

Eligibility Requirements

ComEd and Ameren customers with new solar installations

Illinois Shines Solar Renewable Energy Credits
15-Year SREC Payments
Capacity Available
Source: Illinois Shines Program
Updated: December 2024

Earn ongoing payments for the solar energy you produce through the Illinois Shines program.

Program Details

15-year contract for Solar Renewable Energy Credits (SRECs)
Payments based on system size and location
Typical residential systems earn $200-600 annually
Separate application required after system installation

Eligibility Requirements

Systems under 10 kW qualify for simplified application

Illinois Solar for All
Up to 100% Cost Coverage
Income-Qualified Program
Source: Illinois Solar for All Program
Updated: October 2024

Low-to-moderate income households can access solar with little to no upfront cost.

Program Details

Covers 100% of system cost for qualifying households
Income limits: 80% of Area Median Income
Community solar options available
Includes 20-year maintenance agreement

Eligibility Requirements

Households at or below 80% AMI, renters eligible for community solar

Important Timeline

Key Datesfor Solar Incentives

Understanding key dates helps you maximize your solar investment and avoid missing opportunities.

ComEd Net Metering Changes

January 1, 2025

New customers receive supply-only credits instead of full retail rate credits

Impact: Reduces value of excess solar production by ~30-40%

Federal Credit Remains 30%

December 31, 2032

Residential Clean Energy Credit stays at 30% through 2032

Impact: Maximum savings opportunity continues

Federal Credit Phase Down

2033-2034

Credit reduces to 26% (2033) then 22% (2034)

Impact: Install before 2033 to maximize federal benefits

Real Example

8.5 kW SystemIncentive Breakdown

System Costs & Incentives

Solar System Cost (8.5 kW)$25,500
Federal Tax Credit (30%)-$7,650
IL Smart Inverter Rebate ($300/kW)-$2,550
Your Net Investment$15,300

Ongoing Benefits

Annual SREC Payments (15 years)$400/year
Annual Electricity Savings$1,200/year
25-Year Total Savings$45,000+
6-8 Years
Payback Period

How to Apply for Incentives

We handle most incentive applications for you, but here's what you need to know about the process.

1

Federal Tax Credit

File IRS Form 5695 with your tax return

We provide all documentation
2

Smart Inverter Rebate

Application submitted after installation

We handle the application
3

Illinois Shines SRECs

Separate application to Illinois Power Agency

We assist with paperwork
4

ComEd Net Metering

Interconnection agreement for grid connection

We manage the entire process

Official Resources & Documentation

Links to official program websites and documentation for verification and additional details.

IRS Solar Tax Credit

Official federal tax credit guidance and forms

irs.gov

Illinois Shines Program

SREC program details and capacity dashboard

illinoisshines.com

Illinois Solar for All

Income-qualified solar program information

illinoissfa.com

ComEd Smart Inverter

Utility rebate program and application

comed.com

DSIRE Database

Comprehensive incentive database

dsireusa.org

Citizens Utility Board

Consumer advocacy and net metering info

citizensutilityboard.org
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Last updated: January 2025 • Information verified with official program sources • We handle all incentive applications