The Future Energy Jobs Act (FEJA) boosts Illinois’ renewable energy growth and creates thousands of clean energy jobs.1
Illinois’ home solar energy system price drop over the last five years.2
Illinois’ decrease in greenhouse gas (GHG) emissions below 2005 levels by 2025.3
With the introduction of the FEJA1 and the cost of rooftop panels and home batteries plummeting,2,4 there hasn't been a better time to make the switch with an Illinois solar company like Sunrun. Illinois offers several incentives that make installing solar panels uniquely beneficial.
Sunrun is the leading residential solar, storage, and energy services company in the nation.5 You can create and store your own Illinois solar energy at home to have more control over your electricity bills and get outage protection while ensuring you get the most out of Illinois’ solar power potential.
|Federal Solar Investment Tax Credit (ITC)**||The 26% federal tax credit is available for purchased home solar systems installed by December 31, 2020.6|
|Solar Renewable Energy Credits (SRECs)||Compensation per kilowatt-hour (kWh) produced by the system.7|
|Solar Energy System Property Tax Incentive||Property tax exemption on the added home value from the rooftop solar system.8|
|Illinois Solar for All Programs||Qualified low-income households can get funding to install solar panels in Illinois.9|
Buy and install new solar panels in Illinois in 2020, with or without battery storage, and qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2021 and ends in 2022.6
Approximate average-sized 5-kilowatt (kW) system cost in Illinois: $13,420 Approximate system cost after the 26% ITC in 2020 in Illinois: $9,93110
Illinois’ Adjustable Block Program (ABP) lets you earn Solar Renewable Energy Credits (SRECs) for every kilowatt-hour (kWh) your home solar energy system generates.7
The ABP offers a set price for the purchase of each SREC through 15-year contracts from qualifying solar array projects.7
A home solar power system should not increase your property taxes according to Illinois’ Property Tax Code. You may have to register with a chief county assessment officer or contact your local assessor to get an assessment for your home solar panels.8
Installing a solar panel system in Illinois could also help you build home value.
These programs serve low-income households and communities across the state by funding new Illinois solar installations. All Illinois Solar for All Approved Vendors are required to offer participants access to solar energy with no upfront costs, whether systems are purchased or leased.9
Illinois Solar for All also offers a community solar program, where participants can buy or lease a share of the community solar system. Participants are credited on their monthly utility bill for the energy produced by their share of the community solar system.11
The household's total income must be 80% of the Area Median Income (AMI) or less based on the most recent tax return.9 See the income-qualification chart.
The federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax. The 26% tax credit applies as long as the solar energy system is installed by December 31, 2020. Starting in 2021, the value of the tax credit will step down to 22%. After 2021, the tax credit for residential solar ends.
*Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type and whether a customer purchases or leases a home solar system from Sunrun.
**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.