There are many great Illinois solar incentives and rebates both from the state, local, and federal government. If you’re on top of it and ready when it comes time to install your solar energy system, you’ll be able to take advantage of all the opportunities.
But, to be ready for those savings and incentives, you’ll have to first know about them. We’re here to tell you everything you need to know.
Federal Solar Income Tax Credit
The federal solar tax credit of 26% has been extended through 2021. That means big savings for homeowners that are ready to install a new home solar energy system. There’s a lot that goes into solar, and knowing that you’ll be able to get a 26% of your investment back through federal income tax breaks is huge.
Taxes can be a tricky time of the year, but thankfully with the help of some smart investing and planning, you won’t have to worry as much because you’ll be able to get some great savings or refunds on the money that you’ve had to pay in.
Illinois Renewable (Solar) Energy Rebates & Incentives
There are several incentives from the state and local government (especially in Naperville) to help make solar energy that much more affordable for homeowners. The goal is to drive down your cost as low as possible, so you’re not paying any more than you need to for your solar.
Getting renewable energy on your home will still cost you, and you shouldn’t ever expect to get it for free. But, with the right solar partner, you’ll be able to take advantage of renewable energy and rebates in your area. A great place to start looking for rebates on a local level is with your power companies. Utility companies will offer all kinds of rebates to homeowners willing to lighten the load and give back.
Local and state governments will sometimes do the same to help them reach their carbon-neutral goals. Unfortunately, not all governments are on the same page with this, but be sure to look into it.
Net Metering or NEM
(NEM) Net Energy Metering is another great way to save money on your electric bills and pay off your solar panels faster. Not all utility companies participate in this practice, but at the very least, you can get your electric bill down to $0 a month. Simply put, the program allows you to sell back extra energy that your solar home system makes for it to be put into the power grid and used by others around you. This helps reduce everyone’s costs as a result of the increased use of renewable sources.
Because your utility company benefits from this practice, sometimes they’re willing to pay you for that extra energy that’s sent out to the grid. If your utility doesn’t currently offer this, give them a call and ask about implementing net metering. However, net metering in Illinois has some well-established programs.
A program-specific to Illinois is the Illinois Solar for All Program. This program is designed to help low-income communities throughout Illinois afford solar. All approved solar vendors are required by state law to provide solar energy with no upfront costs to participants. This is applicable for both leasing and purchasing solar panels.
There’s also a community solar program offered to residents. With this program, residents can buy or lease a share of the community solar system. Participants in this program are then credited on their monthly utility bill for the energy produced by their share of the system. It’s a great way to get into solar energy and energy savings without any large investment.
Lastly, to be eligible for some of these programs, your household’s income total must be 80% or less than the Area Median Income (AMI) based on your most recent tax return.
If you’re interested in learning more about getting into solar for your home or business, reach out to us! Sun Badger Solar has been serving Illinois and providing affordable solar for years to come.
We offer best-in-class service with high-quality equipment that will continue producing energy for decades. Sun Badger is your Illinois solar installer.