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Illinois Solar Panels: Pricing and Incentives
  • Written by Luke Daugherty
  • |
  • Edited by Jamie Cesanek
  • |
  • Last updated 08/09/2023

Estimate your home’s solar cost and savings

20-year savings
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$3,422
Incentives
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$1,814
Upfront cost
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$6,273
Payback period
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7 years
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At SaveOnEnergy, we work to offer accurate information with editorial integrity.Our partners do not direct our editorial content, though we may reference their products in our posts. Read more about how we make money.

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Key Points

  • Federal, state, and local incentives are available for Illinois residents to lower upfront costs, earn renewable energy credits, and more.
  • Through the federal solar tax credit, you could receive nearly $8,000 back on your taxes if you purchase an average-priced solar system in Illinois.
  • Investing in solar energy in Illinois can pay off through major long-term electricity bill savings.

Ready to go solar? Call 800-314-9510to be connected with a solar expert today!

Solar power in Illinois

Illinois ranks in the top 15 states for solar energy generation, and its investment in solar power continues to grow. The Solar Energy Industries Association (SEIA) expects Illinois will have major solar growth in the next five years, adding an estimated 6,484 megawatts (MW) of solar capacity. This is good news for homeowners, who may find it easier than ever to invest in solar panels in Illinois.

You still may be wondering if solar is worth it in Illinois. According to data from the Energy Information Administration (EIA), electricity rates in Illinois are higher than the national average. Solar panels can help you lower your energy costs and reduce your household’s impact on the environment. These benefits can be significant, but you should be prepared to pay around $15,000 to $20,000 upfront for a typical 20-panel solar array in Illinois.

Are you considering solar panels for your home in the Prairie State? Keep reading to learn more about whether going solar is right for you.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Illinois solar panel cost

How much do solar panels cost in Illinois? It depends on the size and specifications of your system, as well as labor and permitting costs. Solar panel installations are customizable, so you’ll need to work with a solar installer to determine your total Illinois solar cost.

The price of solar panels is measured in dollars per watt. According to Find Energy, the average cost of a solar system in Illinois is $3.76 per watt, and most Illinois homes need a 7-kilowatt (kW) system to cover their energy usage. The average installed cost of solar panels in Illinois is around $26,320 before factoring in tax credits and incentives.

Here’s how the average cost of solar in Illinois compares to U.S. averages.

System sizeTotal costNumber of solar panels*
Illinois7 kW$26,32018–23
U.S.8.6 kW$31,55822–29

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Illinois solar save you money?

When you install a home solar system, you’ll begin to generate your own electricity. As a result, you can reduce how much electricity you buy from your utility — which can save you over $1,500 per year in Illinois, depending on how much energy your system produces. You can also earn bill credits for selling your excess energy back to the grid.

Based on the average electricity bill and usage in Illinois and factoring in the 30% federal tax credit you can get to offset installation costs, the typical payback period for solar panels is around 12 years. Because solar panels typically last 25–30 years, the savings will accumulate over time. If electricity rates continue to rise in Illinois, your estimated payback period could decrease as your energy savings grow.

Every home will require a different number of panels, resulting in varying total system prices. The following table shows a range of sizes and costs based on the average price per watt for solar power in Illinois.

System sizeEstimated price in IllinoisNumber of solar panels*
3 kW$11,2808–10
4 kW$15,04010–13
5 kW$18,80013–17
6 kW$22,56015–20
7 kW$26,32018–23
8 kW$30,08020–27

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Illinois solar panel incentives or rebates

To help offset the high cost of solar panels in Illinois, the federal government and many state and local governments have implemented solar incentives and rebates.

Residents who purchase a solar panel system qualify for the Residential Clean Energy Credit. Under this solar incentive, you will receive a credit for 30% of your total solar system cost when you file your annual tax return. Based on the average solar panel cost in Illinois, this tax credit alone is worth around $7,896. Note that you can only qualify for the federal tax credit if you own your system — you are not eligible if you lease your panels or enter a power purchase agreement (PPA)

There are also several Illinois solar incentives available at the state and local levels. Here are a few programs to keep in mind.

ProgramDescription
Net meteringNet metering in Illinois lets you send excess solar power from your panels to the power grid in exchange for credits on your electricity bill.
Property tax exemptionSolar panels increase a home’s value, sometimes by as much as $15,000. Illinois residents who purchase solar panels will not have to pay more property taxes for any increases based on their solar system.
Illinois Shines programIllinois residents can earn solar renewable energy certificates (SREC) based on how much power their solar system produces.
Residential Clean Energy CreditIf you install solar panels on your primary or secondary residence, you can get a 30% federal tax credit.

Solar incentives in Chicago

The city of Chicago offers a way to expedite yoursolar panel installation. The city’s Solar Express Permit Program streamlines and simplifies the permitting and zoning process. Some projects could even receive permit approval the same day an application is filed.

  • This Illinois solar incentive program has cut permitting times down from 30 days to one day and reduced fees by 25%.
  • To apply for the program, you’ll need to hire a solar contractor to help you create your plans and submit them for approval. You can then have your system inspected after installation for final approval and same-day permitting.

Solar incentives in Aurora

Aurora, Illinois’ second-most populated city, holds a Gold certification from the U.S. Department of Energy’s SolSmart program. This means it has been recognized for encouraging its residents and business owners to go solar. In Aurora, you can also enjoy the perks of Illinois solar incentives, including Illinois Shines and net metering, as noted on this page.

  • To take advantage of net metering in Aurora, reach out to your local utility, ComEd, or your specific retail electricity provider. Your supplier can help you get set up to enjoy the benefits of selling solar energy back to the grid.
  • To apply for Illinois Shines, review and sign the program’s disclosure form, choose an Illinois solar company to set up your project and application, and have your plans reviewed before and after installation. Once approved, your contracted utility will provide a payment for RECs you will generate over 15 years.

Solar incentives in Joliet

If you live in Joliet, you can take advantage of state-level Illinois solar incentives like net metering and the Illinois Shines SRECs. These programs can reduce the cost of going solar and help you achieve a faster return on your Illinois solar investment.

  • To get set up for net metering in Joliet, contact your local utility, ComEd, or your retail electricity provider. The company that supplies your electricity can help you start selling solar energy back to the grid.
  • To apply for Illinois Shines, you’ll need to follow the same steps mentioned for Aurora.

Why choose Illinois solar power?

There are several reasons why Illinois residents are turning to solar for their homes. Three of the most popular benefits include lowering your energy costs, improving energy independence, and reducing your carbon footprint.

Lower energy costs

Perhaps the most attractive benefit of installing residential solar panels is the money you’ll save by powering your home with the energy your system generates. Relying on solar power can help you reduce your monthly energy costsbecause you pull less electricity from the grid. Over the lifetime of your solar panels, these savings add up. You can also earn credits on your energy bill through net metering programs in Illinois.

Increase energy independence

Energy independence means you don’t have to rely entirely on the traditional electricity grid to power your home. You won’t be as vulnerable to energy price hikes when electricity demand is high. If you have a solar battery, you are more protected from power outages. Solar panels provide more control over where your energy comes from and offer a level of freedom from the traditional power grid.

Go green

Solar power is more environmentally friendly than traditional electricity generation because it doesn’t emit greenhouse gasses into the atmosphere. In fact, solar is a renewable resource. Investing in solar power and boosting your solar education can reduce your home’s carbon footprint.

Should I buy or lease my solar panels?

When you decide to install solar panels on your home, you may have the choice to buy or lease your panels. Each option has unique advantages and will be right for different circumstances.

Purchasing solar panels provides the greatest savings. Buying your solar panels, even if you finance them with a loan, allows you to take advantage of the federal tax credit, which doesn’t apply to those who choose a lease or a power purchase agreement (PPA). Alternatively, if your home or apartment isn’t well suited for a complete Illinois solar system, you could consider other options, such as community solar, solar generators or portable solar panels.

Payment methodBenefitsDrawbacks
Cash purchaseLargest amount of savings in the long run, solar panel ownership, eligible for Illinois solar incentives, increases home value by $15,000, lower energy billsHighest upfront cost
Solar loanSolar panel ownership, eligible for incentives, lower energy billsInterest fees
Solar leaseAvoid upfront costs, lower maintenance requirements, lower energy billsNo ownership of the panels, ineligible for incentives, may need to find someone willing to take over the lease if you move
Power purchase agreementAvoid upfront costs, lower maintenance requirements, lower energy billsNo ownership of the panels, ineligible for incentives, may experience less long-term savings
Community solarEasy to subscribe, receive green energy with no maintenanceNo ownership of the panels

Illinois solar panel companies

Finding the best Illinois solar companies can require a lot of research. SaveOnEnergy is here to simplify the process with our solar energy resources and marketplace. We work with top-tier solar companies to offer home energy solutions. When searching for an installer in Illinois, remember to compare quotes from multiple companies, explore customer reviews, and carefully read your contract before signing.

Once you feel ready to take the next step, fill out the solar estimator on this page or give us a call, and we can help you connect with a solar installer in your area.

Solar installerYear foundedFinancing optionsWarranty terms
Palmetto company logo2010Upfront cash purchase, solar loan, lease, or PPAMinimum 12-year product warranty & 25-year performance guarantee
Primitive Solar Company Logo2018Upfront cash purchase or solar loan30-year performance and 25-year panel warranties
Sunnova2012Upfront cash purchase, solar loan, lease, or PPA25-year equipment and installation warranty
Sunpower solar company logo1985Upfront cash purchase, solar loan, or lease25-year full system warranty

Beware of free solar panels in Illinois scam

The cost of solar panels in Illinois has dropped significantly over the years. And with the federal and state incentives available today, solar energy is much more affordable for many homeowners. However, you should be wary if you encounter any offers for free solar panels in Illinois.

Such offers are too good to be true — and they’re really just an excuse to get your personal information. Solar panels will cost you a fair amount up front, but they can pay off in major energy savings in the long run.

What to look for in a solar contractor

There are a few things to look for when shopping around for an Illinois solar company. For starters, you’ll want to make sure that your installer is licensed, insured, and solar-industry certified. You should also research their experience with projects like yours and ask if they have any references you can speak with. Finally, inquire about their process, products, warranties, and pricing to confirm that you’re aligned in those areas.

Not sure where to start? Enter your information on this page to get connected with a reputable Illinois solar contractor today.

Important solar installation factors to consider

There are a few things to consider before installing solar panels on your home in Illinois:

  • Your roof: According to the Department of Energy, solar panels are best suited to south-facing roofs with slopes between 15 and 40 degrees. Newer roofs in good condition are optimal because they won’t need to be replaced soon.
  • Amount of sunlight: The amount of direct sunlight your solar panels receive will impact their effectiveness. Solar panels can save you more money if they get lots of sunlight. 
  • Neighborhood restrictions: Illinois has a solar rights law, meaning neighborhoods and homeowners’ associations (HOAs) cannot ban solar panels. However, your HOA may have certain restrictions around the location, size, or design of your solar panels. Before installing a solar array, research the requirements and approval processes in your area. Your installer may be able to help you work through potential roadblocks.

Solar power FAQs

  • The average cost of a 7-kW solar panel system in Illinois is around $26,320, before tax and incentives, according to Find Energy. The cost of your system will depend on its size, the type of solar panels, other system components (such as inverters and batteries), and local labor and permitting costs.

  • Solar panels can be an expensive yet rewarding investment because they can help you save money on energy. To expand your solar education and determine if they’re right for your home, you should consider your energy usage habits, whether your home and roof are optimal for panels, and how much you typically pay in electricity bills.

  • The amount you can save on energy by installing solar panels in Illinois depends on how much sunlight your solar panels get and how much energy you use. Based on the average energy bill in Illinois, you could save over $1,500 annually with a solar system that covers your entire energy usage.

  • If you’re in the market for solar panels in Illinois, SaveOnEnergy can help. To get started, enter your information in the form on the screen or give us a call, and we’ll connect you with a solar installer in your area.

  • Unlike fossil fuels, producing solar energy in Illinois doesn’t emit carbon dioxide into the atmosphere. It’s a clean, renewable energy source that will help you live more sustainably and minimize your carbon footprint.

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