Illinois solar incentives 2026: every program explained

Illinois has built one of the most compelling solar incentive structures in the Midwest through the Illinois Shines program — also known as the Adjustable Block Program (ABP). While Illinois does not have a state income tax credit for residential solar, Illinois Shines creates ongoing REC income that significantly improves the financial picture for Illinois homeowners over 15 years.

Illinois Shines: the Adjustable Block Program (ABP)

Illinois Shines is administered by the Illinois Power Agency and creates a market for Solar Renewable Energy Credits (SRECs) from residential solar installations. Here is how it works: your solar system generates one SREC for every megawatt-hour (1,000 kWh) of electricity it produces. Illinois Shines guarantees a buyer for those SRECs at a set price for 15 years, paid either as an upfront lump sum or annually. The SREC price varies by program block and territory; ask your installer for the current Illinois Shines value in your ComEd or Ameren territory. This ongoing income stacks on top of your net metering savings and meaningfully shortens payback. Only approved vendors can participate in Illinois Shines — make sure your installer is enrolled.

ComEd and Ameren net metering

ComEd (Consolidated Edison of Illinois) serves Chicago and the northern suburbs. Ameren Illinois serves the rest of the state. Both offer full retail-rate net metering. ComEd’s retail rate is approximately $0.17–$0.22/kWh in 2026; Ameren’s rates are somewhat lower in some areas. Credits roll forward monthly.

Sales tax exemption

Solar equipment is exempt from Illinois’s 6.25% state sales tax. On a $25,000 system, that saves approximately $1,563.

Property tax exemption

Illinois exempts solar-added home value from property tax assessment for the life of the system under the Renewable Energy Property Tax Exemption.