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A lot changed for Illinois homeowners considering rooftop solar in 2025 and 2026. The federal 30% tax credit for buying solar ended, net metering rules changed for new systems, and solar sales pitches didn’t always keep up. At the same time, Illinois still has some of the strongest state-level solar incentives in the country.
So is solar still worth it here? This guide explains what changed, which incentives remain, how to estimate your own payback with a worked example, and the questions to ask before you sign anything.
Table of Contents
What Changed in 2025 and 2026
The federal tax credit (Section 25D) ended
The 2025 federal budget law ended the 30% Residential Clean Energy Credit (Section 25D) for systems installed after December 31, 2025, according to EnergySage. If you buy a system now, with cash or a loan, you don’t get that credit.
Leases and power purchase agreements (PPAs) are different. The solar company owns the system and can still claim a separate business credit (Section 48E) for systems placed in service before 2028, and it may pass some of that value to you through lower payments. That makes third-party ownership more competitive than it used to be, though you give up the incentives and long-term savings of owning.
Net metering is now “supply-only” for new systems
For ComEd, Ameren and MidAmerican customers, systems that started operating on or after January 1, 2025 get credits for excess power at the supply portion of the rate, not the full retail rate including delivery charges. Systems running before then are grandfathered.
In practice, power you use at home is worth your full retail rate, while power you send to the grid is worth less. That makes it more valuable to use your solar power yourself, and it’s one reason some Illinois homeowners now add a home battery.
Illinois Incentives That Still Apply
| Incentive | What it is | Typical value |
|---|---|---|
| Illinois Shines | An upfront payment for the renewable energy credits (RECs) your system is expected to produce over 15 years, usually handled by your installer (an Approved Vendor) | Varies by utility and system size; declines over time |
| Distributed generation rebate | ComEd and Ameren rebate for solar (and qualifying battery storage) with a smart inverter | About $300 per kW, so ~$2,100 for 7kW |
| Property tax treatment | Special assessment rules keep solar from raising your property tax bill the way other improvements would | Ongoing savings |
| Illinois Solar for All | No-upfront-cost options for income-qualified households | Bill savings with no cost to join |
| Community solar | Subscribe to a shared solar farm and get bill credits, with nothing on your roof | Typically a modest percentage off supply charges |
Sources: EnergySage Illinois incentives guide and Illinois Shines FAQs. Incentive levels change, so confirm current amounts with your installer and utility.
How to Estimate Your Payback
- System cost: Illinois installs have averaged roughly $3 per watt before incentives. A 7kW system runs about $20,000–$22,000. Get at least three quotes.
- Subtract incentives: your Illinois Shines payment plus the utility rebate (about $2,100 for 7kW).
- Estimate yearly production: a well-placed 7kW system in northern Illinois typically produces about 8,000–9,000 kWh a year. Your installer’s estimate should be based on a shading analysis of your actual roof.
- Estimate yearly savings: multiply the share you use at home by your full rate, and the share you export by the supply-only credit.
- Divide net cost by yearly savings to get a simple payback period.
A Worked Example
Here’s an illustrative example for a 7kW system on a south-facing Chicago-suburb roof. Your numbers will differ, so treat this as a template, not a quote.
| Line item | Example value |
|---|---|
| Gross system cost (7kW × $3.00/W) | $21,000 |
| Illinois Shines payment (example) | −$5,000 |
| Utility DG rebate (7kW × $300) | −$2,100 |
| Net cost | $13,900 |
| Yearly production | 8,500 kWh |
| Used at home (40%) × 18¢ | $612 |
| Exported (60%) × ~9¢ supply credit | $459 |
| Yearly savings | ~$1,070 |
| Simple payback | ~13 years |
A few things can improve that a lot: a bigger Illinois Shines payment, using more power during the day (home office, EV charging in the afternoon, running the dishwasher at noon), rising electricity rates, or a lower installed price. Panels typically carry 25-year output warranties, so the years after payback can still add up to meaningful savings.
Solar Is Most Worth It If…
- You have a south-, southwest- or west-facing roof with little shade from trees or neighbors.
- Your roof has 15+ years of life left, or you’re replacing it anyway. Removing and reinstalling panels later costs thousands.
- You use a lot of power during the day: home office, EV charging, pool pump, central AC.
- You plan to stay in the home at least 8–10 years.
- You can pay cash or get a low-rate loan. High-interest solar loans can wipe out the savings.
Solar Is Probably Not Worth It (Yet) If…
- Your roof is heavily shaded or faces mostly north.
- Your roof needs replacement in the next few years.
- You expect to move soon.
- Your electricity use is already low.
- The only financing available is expensive.
Should You Add a Battery?
With supply-only net metering, batteries look more appealing: they let you store afternoon production for evening use instead of exporting it at a lower credit, and they provide outage backup. But whole-home batteries add $10,000 or more. For many households, a smaller step makes sense first: a portable power station for outages, which you can later pair with a few panels.
Portable power station + solar panel
Not ready for rooftop solar? A power station and folding panel gives you outage backup now and a feel for how much solar your home can actually use.
Questions to Ask Any Installer
- Are you an Illinois Shines Approved Vendor? Who receives the REC payment, me or you, and how is it reflected in my price?
- What production estimate are you using, and what shading analysis is it based on?
- How does your savings estimate account for supply-only net metering?
- Does the quote include the utility rebate, and who files for it?
- What are the warranties on panels, inverters, workmanship and roof penetrations?
- If it’s a lease or PPA: what’s the annual escalator, and what happens if I sell the house?
- Can you show me reviews from customers in my area from at least two years ago?
Not Ready for Rooftop? Start Small
If the numbers don’t work yet, or you rent, there are low-commitment ways to start: a plug-in or portable solar setup, a power station for outage backup that you can later pair with panels, or a community solar subscription that delivers bill credits from a shared solar farm with nothing on your roof.
Frequently Asked Questions
Is there still a federal tax credit for solar in 2026?
Not for systems homeowners buy and install after December 31, 2025. Leased systems and PPAs can still benefit indirectly, because the solar company may claim a business tax credit through 2027.
How much does a solar system cost in Illinois?
Roughly $3 per watt before incentives has been typical, so about $20,000–$22,000 for a 7kW system. Quotes vary widely, which is why comparing several matters.
Will solar raise my property taxes in Illinois?
Illinois’s special assessment rules for solar are designed to prevent the system from increasing your assessed value the way other improvements would.
Does solar work in Chicago winters?
Yes, but production drops a lot in December and January because of short days, low sun and snow cover. Summer production makes up for it. Annual totals are what matter for payback.
The Bottom Line
Losing the federal credit hurt, but Illinois Shines, the utility rebate and favorable property tax rules keep rooftop solar viable for many Illinois homes, especially sunny, long-term, high-usage ones. Get at least three quotes, ask hard questions about the REC payment and net metering, and run your own payback math before signing.
This article is general information, not financial or tax advice. Incentives change, so verify current details with your utility, installer and a tax professional.