Illinois solar panels: The complete guide in 2025
Data updated Dec 2, 2025
Ready to go solar in Illinois? To offset the average typical electric bill, you’ll need a 12.65 kW system, which costs about $25,754 after the federal tax credit.
Cost for an average system in Illinois
| Cash price | $36,792 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $49,698 | 7 Years | 88% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Illinois
Illinois may not be the sunniest state in the country, but its great incentives make solar panels a worthwhile investment for pretty much anyone in the Prairie State.
Factor in the federal solar tax credit, and Illinoisians can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your investment.
Here's what you should know about going solar in Illinois.
Cost
How much do solar panels cost in Illinois?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Illinois homeowner needs a 12.65 kW solar panel system to cover their electricity needs, which comes out to $36,792 before incentives. Prices range from $31,273 to $42,311, but after the federal tax credit, that drops by 30%. However, the federal tax credit is now set to expire after 2025, following recent legislative changes. If you're considering solar, starting the process now could save you $11,038.
While this may sound high, it will pay off in Illinois. That's why over 37,000 Illinois homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 7.23 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings.
Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings, but can make sense in some situations. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
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Incentives
What are the best solar rebates and incentives in Illinois?
Incentives help bring solar's price tag down considerably in Illinois. Here are the major ones to know about:
| Incentive | Average savings in Illinois | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $11,038 | Lowers your solar panel system's cost by 30%, but expires on January 1, 2026. |
Illinois Shines Program | $7,000 | Provides one upfront payment for the Solar Renewable Energy Credits (SRECs) your solar panel system is expected to produce over 15 years. |
Illinois Solar for All Program | Varies significantly by project | Requires no up-front cost for lower-income solar customers and ensures you won't pay more than half the value you receive from your solar energy system each month. |
Smart inverter or distributed generation rebate | $1,500-$3,000 | Provides an upfront rebate worth $300/kW of solar or $300/kWh of storage installed. |
Illinois solar property tax exemption | 2.11% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. |
Is net metering available in Illinois?
If you live in a state with a net metering program, you can earn credits for the excess generation your solar panel system produces and delivers back to the grid. It’s essentially a solar buyback program that makes it so you owe little to nothing on your electric bills.
As of January 1, 2025, Illinois has transitioned to a supply-only net metering model for new solar installations, which is unfortunately less valuable than regular net metering.
Learn more about net metering in Illinois or get the details on utility-specific programs below:
Equipment
Equipment quality
Solar panel efficiency continues to improve every year—that is, they produce more power per square foot. As of 2025, many top-selling solar panels produce around 450 watts in full sunlight. To maximize your roof’s production potential, look for panels with at least that level of output.
It’s also important to choose an inverter setup that fits the design of your roof.
And if you plan to add a solar battery, make sure it’s compatible with your inverter setup for smooth integration.
While higher-end equipment can be more expensive upfront, it often leads to greater savings over time. Premium products usually come with longer warranties—up to 25 years or more—and are built to last. They also degrade more slowly, meaning you’ll get more consistent energy production further into the future.
Companies
Who are the best solar installers in Illinois?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Illinois:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Illinois
- Illinois Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Community Solar farms in Illinois
Can't install solar on your roof? Check out local solar farms to save money.
- Illinois Power Agency
Learn about IL renewable resources from the state government.
- Illinois Commerce Commission
Read more about how utility companies work in IL.
- Illinois Electricity Profile (EIA)
Learn about IL energy production and prices.
- IL State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in IL.
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