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Illinois' generous state incentives give residents the opportunity to switch to solar without breaking the bank.
Whether you're in Chicago, Peoria or anywhere else in Illinois, solar panels can make financial sense, thanks to state and federal incentives.
Switching to solar panels can significantly reduce your utility bills and shrink your carbon footprint. However, price tags in the tens of thousands of dollars can be a nonstarter for many homeowners. On the other hand, going solar could be a game changer -- especially considering the average electric bill in Illinois went up by 28% from June 2023 to June 2024. These numbers will fluctuate with the ever-changing cost of energy, but going solar can also bring some consistency when it comes to your monthly bills.
In Illinois, as in the rest of the country, residents benefit from the federal tax credi established by the Inflation Reduction Act, covering up to 30% of solar installation costs come tax season. But in the Land of Lincoln, there are also state programs that offer major help.
One, Illinois Shines, provides upfront funding for household solar panels through the purchase of renewable energy credits. Another, Illinois Solar for All, pays for folks who meet lower-income requirements to install solar panels with no up-front cost, according to Vito Greco, director of solar programs at the clean energy advocacy group Elevate, which administers the program.
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Here's what you need to know about Illinois solar incentives and how to choose the best installer.
There are 373 solar companies operating in Illinois, including 114 installers and developers, according to data from the Solar Energy Industries Association. So which one do you choose?
If you're receiving state incentives, you'll need to choose one of the approved vendors of Illinois Shines or Illinois Solar for All, whichever program you're using. Get quotes from multiple installers, and check reviews and do other research to make sure you're getting the best deal from a reputable company. Here are a few from our research and our list of best solar companies.
Solar panels are typically low maintenance equipment, but they're also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it's working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto's monitoring service in to your payback period calculations.
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Palmetto Solar has more robust service for after installation than most other companies, though it might cost you a bit. All customers receive third-party monitoring and proactive communication when some part of their solar system malfunctions. Palmetto also receives an A-plus from the Better Business Bureau. Palmetto offers quality solar equipment and is one of the few companies that offers Sonnen's batteries. Palmetto's workmanship warranty is 10 years and its weatherization warranty is 5 years.
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that's changing.
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Freedom Forever, one of the largest American solar installers, installs some of the most popular residential equipment. It offers a production guarantee and an uncommon cash escrow option is a welcome step toward a less stressful process.
Freedom Forever has had customer service issues, with complaints of paying for a nonfunctional system while dealing with poor communication and long waits. Some recent customers have had flawless experiences, but those reviews appear alongside many more negative ones. The company says things have turned around after a bad stretch, but it’s worth monitoring.
Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.
If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.
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Solar panels from Tesla are likely to be the cheapest option where they are available. You can save thousands of dollars, without sacrificing on quality of equipment or the warranties that protect it.
What you might sacrifice is customer service. From delays to price changes, to slow responses, to system malfunctions, social media reports of negative experiences aren't hard to find, including some who regret their choice. This is true of all solar companies, but the quantity of reports concerning Tesla is concerning.
EnergyPal is more than just a middleman. It'll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
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EnergyPal is both a marketplace and an energy advisor. It uses its proprietary quote builder engine to customize your solar system; then it'll contract with a local company and act as your single point of contact for everything from installation to permitting. Hardware options include solar panels, batteries and inverters from QCells, REC, Silfab, Aptos, Tesla, Enphase, SolarEdge and FranklinWH. You can expect a workmanship guarantee of 5-10 years, with manufacturer warranties of up to 30 years depending on the hardware. No weatherization warranty is offered. Customers can also take advantage of third-party monitoring tools, from Enphase, SolarEdge, Tesla and others. While EnergyPal isn't rated by the BBB, it receives positive customer reviews online and scores a 4.7 on Trustpilot.
Nelnet Renewable Energy offers solar installations for pitched roofs, flat roofs and ground-mounted solar. It also offers Tesla Powerwall installations. The company offers financing options, as well as leasing and power purchase agreements.
Based in Chicago, Windfree Solar has been in business since 2009 and operates across the Midwest. The firm, an approved vendor for both Illinois Shines and Illinois Solar for All, provides design, installation and monitoring services. It also sells battery systems.
The best solar installer for your needs is an installer that has experience working on the type of solar project that you're interested in. You'll want to make sure your installer has experience working with the type of roof that your home has, and the type of system you want installed, like on-grid or off-grid.
You should look for solar installers that are certified by the North American Board of Certified Energy Practitioners and have the proper licensing and bonding to do their work. Reading online reviews can also help you get a better understanding of an installer's reputation. A few common places to start looking for solar company reviews are Google, Yelp and Angi (formerly Angie's List). Ben Delman, a communications director with Solar United Neighbors, recommends looking for installers that have at least 20 to 30 reviews. If you know someone who has solar panels on their home, ask them for solar installer recommendations too.
Aside from reviews and certifications, there are a few other things to look for in a solar installer. A good installer, Delman said, will be able to:
A trustworthy solar installer should be able to answer any questions you may have, no matter how difficult your questions are. Don't be afraid to ask for clarification on project and pricing details. Make sure to shop around and gather multiple quotes to get the best price possible. Delman recommends comparing at least three quotes before choosing your installer.
Here's a look at the average cash price for a typical solar panel system in Illinois before factoring in tax credits and incentives, according to data from FindEnergy.com.
The map found below displays the average total price, cost per watt and system size for rooftop solar in different states, according to data from FindEnergy.com. The prices shown do not represent fluctuations from tax credits or state solar incentives. If FindEnergy doesn't have solar data for a particular state, it appears grayed out on the map.
Illinois has some robust incentives for clean energy, implemented in two recent state laws: The Future Energy Jobs Act of 2016 and the Climate and Equitable Jobs Act of 2021. These laws created programs around utility-scale renewable energy, electric vehicle infrastructure and more.
If you're interested in residential solar, these laws implemented a pair of incentive programs that can make a significant dent in the cost of panels. Illinois Shines provides upfront funding for your solar system by prepaying for 15 years of renewable energy credits, which you receive for producing clean energy. That can offset about a third of the cost of a solar system, Greco said.
Illinois Solar for All, meanwhile, makes sure residents don't pay upfront costs for a solar panel system if their income is less than 80% of the area median income.
Illinois Solar for All and Illinois Shines supplement the major federal tax credit, the residential clean energy credit, which was expanded and extended in the recently passed Inflation Reduction Act. That credit covers as much as 30% of the cost of having a solar system installed. Because it's a tax credit, you'll claim it on your return the following year, and you can only receive as much as you paid in federal tax that year.
Some changes in 2025 will negatively affect how quickly your solar panels pay for themselves. New solar panel systems connected starting with the new year will no longer be eligible for retail rate net metering, in which customers get who sell surplus energy to the grid will be paid back the same amount they would pay the utility for electricity. Instead, that credit will count only toward the supply cost of electricity, not the cost of delivery, meaning the credit will fall short of one-to-one.
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here's how your state scored on CNET's solar policy test.
Grade: B
Incentives available:
Strongest scoring categories:
The Prairie State has a multitude of programs designed to lower solar panel installation costs. Retail rate net metering and a full property tax exemption also help lower the solar payback period for those installing solar in the state.
Categories to improve:
The state doesn't exempt solar equipment from sales tax. The state could also mandate community solar capacity to ensure more low-income households have an affordable path to solar energy.
The combination of state and local tax incentives in Illinois means your out-of-pocket expenses for a solar power system should be lower compared to other states. But you'll likely still have to pay something -- and even a fraction of the cost is still thousands of dollars. Here are some ways to pay:
Cash: Paying with cash allows you to avoid financing costs and ongoing bills. If you aren't ready for solar just yet, consider putting money away in a high-yield savings account so you have more cash to work with when you are ready.
Solar loan: Solar installers often work with financial institutions to offer loans. These can be a good idea if you don't have the cash on hand, but shop around to make sure you're getting the best terms and interest rate.
Home equity loan, or HELOC: One popular way to finance home improvements is through a home equity loan or home equity line of credit. These loan types differ from each other -- loans are a lump sum you receive up front, typically at a fixed interest rate, while HELOCs are more akin to a credit card. What they have in common is that both are secured against the equity in your home, meaning if you fail to pay them back, the lender can foreclose on your house.
Personal loan: If you don't want to put your home at risk, you can also use a personal loan. These, offered by many financial institutions, are unsecured. Personal loans tend to come with higher rates and often shorter terms than home equity loans because they're riskier for banks. When looking at any financial product, be sure to shop around to make sure you're getting the right deal for you.
Lease or power purchase agreement: These two options will save you from having to purchase the solar panels yourself, but there are tradeoffs. You can lease panels from a solar company, paying them to rent the panels. Or you can have a power purchase agreement, in which a company installs panels on your house and you pay them for the power generated.
Read more: Just looking for an emergency backup? Check out portable solar panels and solar generators.
Solar panels can save you a lot of money -- but only if done right. Not every home is right for solar panels. Greco estimated that as many as three-quarters of homes aren't a good fit. There are a few ways to tell, but they won't prevent you from doing your part and working to lower your bills. That's because Illinois also has strong community solar opportunities, in which you pay for a share of energy from a separate facility. "For people who can't put solar on their roof, they can subscribe to a community solar array, and you're getting virtual solar," Greco said. "Typically right now you're seeing 20% savings off of community solar."
Here's what you should consider before getting solar on your roof:
Our methodology
The companies we listed above as "the best" are curated from CNET's best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we've completed a full review on a company or not, it's always a good idea to get multiple quotes from different installers before choosing a company.
Is Illinois a good state for solar panels?
Illinois has some robust incentives that can make it a lot easier for you to afford putting a solar system on your home. The state also has community solar options, which make it easy to take advantage of the sun's power even if your home isn't a perfect fit for panels.
Should I get batteries with my solar panels?
Batteries don't have to be included. Without batteries, your system will just be tied to the grid, meaning you'll sell any excess energy to your utility system at the retail rate. But batteries may be useful if you want a backup source of power. "Residential customers want batteries in case the power goes out," Greco said.
Kim Porter contributed to this article.
Article updated on November 10, 2024 at 1:21 AM PST
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Pros and Cons Pros ConsAreas servedProduct details Pros and Cons Pros ConsAreas servedProduct details Pros and Cons Pros ConsAreas servedProduct details Pros and Cons Pros ConsAreas servedProduct detailsProgramDescriptionGrade: BIncentives available:Strongest scoring categories:Categories to improve:Cash:Solar loan:Home equity loan, or HELOC:Personal loan:Lease or power purchase agreement:Read moreThe condition of your roof:HOA and neighborhood regulations:Insurance coverage:Your location:Rentals: