Updated for 2026
Illinois Solar Incentives in 2026
The biggest federal incentive for buying solar is gone. Illinois' own program is not — and for some homeowners it just got more generous. Here is precisely what you can and cannot claim this year in Naperville and DuPage County.
The 30% federal tax credit ended December 31, 2025
The residential clean energy credit (Section 25D) — the “30% solar tax credit” that nearly every solar guide online still references — applied to systems placed in service through the end of 2025. There was no step-down to 26% and no grace period. It went to zero.
If you buy a system with cash or a loan in 2026, you receive nothing from the IRS for it. On a $25,000 installation, that is $7,500 of value that existed last year and does not exist now. Any quote or website still building a 30% federal credit into your payback math is overstating your return by thousands of dollars.
One exception: leases and power purchase agreements are treated as business investments, and that credit (Section 48E) runs through 2027 — but it is claimed by the company that owns the system, not by you.
Illinois Shines — now the main event
Illinois Shines (formally the Adjustable Block Program) buys the renewable energy credits your system generates. One credit equals one megawatt-hour of production, and the program pays for roughly 15 years of expected generation. Unlike a tax credit, this is a payment — you do not need tax liability to benefit from it.
2026–27 program year values
- Residential systems up to 10 kW
- ~$70.37 / credit
- Systems 10–25 kW
- ~$60.92 / credit
- Customer-owned adder (≤25 kW, no federal credit claimed)
- +~$20 / credit
- Payment schedule
- ~50% year one, rest quarterly
Values are set annually by the Illinois Power Agency and can change between program years. Confirm current figures with your installer or at illinoisshines.com before you sign.
A worked example
Take a 7.5 kW system on a typical Naperville-area roof. In northern Illinois that generates roughly 9 megawatt-hours a year, so about 135 credits over the 15-year term. At the small-system rate plus the customer-owned adder, that is in the region of $9,000 to $12,000 in Illinois Shines payments — with roughly half arriving in the first year after installation and the remainder spread quarterly over about six years.
That single program now does much of the work the federal credit used to do. It is also the strongest argument for buying rather than leasing: in a lease or PPA, these payments go to the system's owner, not to you.
Net metering: Naperville plays by different rules
This is the single most misunderstood point in our service area. Naperville is not a ComEd town — the City runs its own municipal electric utility and sets its own net metering policy. Cross the boundary into Aurora, Lisle or Downers Grove and the state rules apply instead.
City of Naperville utility
- 1:1 kWh credit against the electric-utility portion of your bill
- Credits roll over monthly but expire every March 31
- Leftovers paid at the avoided-cost rate of 4.9¢/kWh
- Separate City interconnection agreement required
- Consequence: size to your usage — surplus is cashed out cheaply.
ComEd territory (everywhere else we serve)
- Illinois statutory net metering
- Full retail-rate credit for exported energy
- A kWh exported in July offsets a kWh imported in January at equal value
- ComEd processes the interconnection application
- Consequence: surplus production retains its full value.
Not sure which applies to you? See the Naperville page or pick your town from our service area.
The rest of the stack
Property tax special assessment
Illinois assesses qualifying solar energy systems in a way that prevents your property tax from rising as it would for a comparable improvement. Ask your installer to confirm the filing with your county assessor and keep a copy.
Sales tax treatment
Illinois has long-standing exemptions that reduce the tax burden on solar equipment. The practical effect shows up inside your installer's pricing rather than as a separate rebate — another reason to compare itemized quotes.
Federal credit via lease/PPA
Section 48E remains available through 2027 for third-party-owned systems. The provider claims it and should reflect part of that value in your rate — but you give up the Illinois Shines payments in exchange. Price both routes before deciding.
Financing
Solar loans remain widely available. Watch for dealer fees embedded in low-APR offers — a “0%” loan often carries a markup in the system price. Compare the cash price against the financed total, not the monthly payment.
Illinois solar incentives, answered
Straight answers about what changed in 2026 and what it means for your numbers.
Is the 30% federal solar tax credit still available in 2026?
No — not for a system you buy. The residential clean energy credit under Section 25D applied to property placed in service through December 31, 2025. It ended outright, with no phase-down and no transition period. If you purchase a system with cash or a loan in 2026, there is no federal credit to claim on your return. Anyone still quoting you a "30% federal credit" on a 2026 cash purchase is working from outdated information — ask them to show you the current rule in writing.
So is solar still worth it in Illinois without the federal credit?
For many homeowners, yes — but the arithmetic changed and you should redo it rather than rely on a number from 2024. Illinois is unusual in that its state-level incentive is genuinely substantial: Illinois Shines pays for roughly 15 years of your system’s renewable energy credits, often around $9,000 for a 7.5 kW system, with about half of that arriving in the first year. Combined with net metering and the property tax treatment, the stack is still meaningful. What has changed is that payback periods have lengthened, so insist on a quote that models your actual usage rather than a generic estimate.
Do leases and PPAs still get a federal credit?
Indirectly. Third-party ownership is treated as a business investment, and the business credit under Section 48E remains available through 2027. In a lease or power purchase agreement, the company that owns the equipment claims that credit, not you. A competitive provider should pass part of that value through in your monthly rate. Because you do not own the system, you also do not receive the Illinois Shines payments — which is a significant trade-off worth pricing carefully against buying.
How much does Illinois Shines actually pay?
For the 2026–27 program year, residential Small DG systems earn roughly $70.37 per renewable energy credit up to 10 kW, and about $60.92 per credit between 10 and 25 kW. One credit equals one megawatt-hour of generation. Systems of 25 kW or less that are customer-owned and are not claiming a federal tax credit can also qualify for an additional adder of about $20 per credit — a change introduced largely to soften the loss of the federal credit. Program values are reset annually by the Illinois Power Agency, so confirm the current figures with your installer before signing.
Is net metering the same everywhere around Naperville?
No, and this trips up most homeowners. Naperville runs its own municipal electric utility rather than being served by ComEd, so its net metering terms are set by City policy: exported energy is credited one-for-one, but unused credits expire each March 31 and are cashed out at an avoided-cost rate of about 4.9 cents per kWh. In ComEd territory — Aurora, Bolingbrook, Wheaton, Downers Grove and the rest of our service area — Illinois’ statutory full retail-rate net metering applies instead. Practically, that means over-sizing a system is punished in Naperville in a way it is not next door.
Will solar raise my property taxes in Illinois?
Illinois provides a special assessment for solar energy systems, so a qualifying installation is not supposed to increase your assessed value the way a comparable improvement would. It is not automatic paperwork-wise — ask your installer to confirm the filing with your county assessor, and keep the documentation.
This page is general information, not tax or legal advice. Incentive programs change — verify current terms with your installer, the Illinois Power Agency, and a tax professional before you make a decision.
Local intel no one else covers
Naperville's $1,750 solar rebate ran out in June. Be first in line when it reopens.
The City pays $250/kW toward a home system — but 2026 funding was fully awarded by late June. The next round will go fast too. Leave your email and we'll tell you the day applications reopen.
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