Solar Panel Costs and Savings in Illinois (2026 Guide)
Illinois changed its solar rules recently enough that much online advice is stale: since January 2025, new customers get roughly half the old value for exported power — while Illinois Shines still front-loads thousands of dollars of incentive value.
Illinois solar at a glance (July 2026)
| Metric | Figure |
|---|---|
| Avg. residential electricity rate | 20.47¢/kWh (EIA, April 2026) |
| Avg. peak sun hours | ~4.0 per day (NREL-based estimate) |
| Typical installed cost | ~$2.40–$3.35 per watt before incentives (2026 national range) |
| Export compensation | Supply-only netting for customers interconnected since Jan 1, 2025 (~half of retail value); pre-2025 customers grandfathered at full retail |
| Federal tax credit | None for purchases after Dec 31, 2025 (details) |
| Headline incentive | Illinois Shines: ~15 years of REC value paid upfront |
The 2025 net metering change, explained
Under the state’s Climate and Equitable Jobs Act, new net metering customers of ComEd and Ameren from January 1, 2025 onward receive export credits covering only the supply and transmission portions of their bill — delivery charges are no longer offset. Since delivery is roughly half a typical Illinois bill, an exported kWh is now worth about half what it was under the old full-retail structure. Customers interconnected before 2025 keep full retail netting for the life of their systems.
Two practical consequences:
- Self-consumption is now worth ~2× exports. A kWh you use directly still avoids the full 20.47¢ retail rate; an exported kWh recovers only the supply piece. Size to your usage and shift flexible loads into solar hours — same playbook as Georgia or Arizona, if less extreme.
- Old payback estimates are wrong. Any quote or article computing savings at full retail export value for a new 2026 installation is using pre-2025 rules. See our net metering guide for the mechanics.
Illinois Shines: incentive money that arrives early
Illinois Shines (formally the Adjustable Block Program) remains the state’s distinctive incentive: instead of selling market-priced SRECs year by year like Pennsylvania, your system’s ~15 years of projected renewable energy credits are purchased upfront or near-term through an approved vendor, typically passed through your installer as a contract-price reduction or early payment — commonly thousands of dollars on a residential system.
Block pricing steps down as capacity fills, so the exact value depends on timing. Two checks worth making: that your installer is an Approved Vendor in the program (verifiable on the Illinois Shines site), and that the REC payment appears explicitly in your contract rather than as a vague “incentive” line.
No state credit, average sun, above-average rates
Illinois has no state income tax credit, and ~4.0 sun hours is bottom-of-pack. What it does have is 20.47¢/kWh electricity — sixth-highest in our guides — and the Shines upfront payment cutting effective system cost. Run both sides of that ledger with the calculator, and factor real Midwest winters via the winter guide.
Bottom line
Illinois in 2026 rewards accurate, current information: supply-only netting halved export value for new customers, but Illinois Shines still delivers one of the country’s few large upfront incentives, and 20¢ electricity keeps self-consumed solar valuable. Buy from an Approved Vendor, size for your own usage rather than for exports, and ignore any savings estimate built on pre-2025 net metering.
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Frequently Asked Questions
- How did Illinois net metering change in 2025?
- As of January 1, 2025, new ComEd and Ameren solar customers receive credit only for the supply and transmission portion of their bill for exported electricity — not delivery charges. That roughly halves the value of an exported kWh compared with the full retail credit that customers interconnected before 2025 keep (grandfathered for the life of their system). Self-consumed solar still offsets the full retail rate.
- What is Illinois Shines and how is it different from other SREC programs?
- Illinois Shines (the Adjustable Block Program) pays you the value of 15 years of your system's projected renewable energy credits as upfront or near-term payments through an approved vendor, rather than trickling in market-priced payments over time. On a typical home system this is thousands of dollars that arrive early, meaningfully cutting the effective upfront cost.
- Does Illinois have a state solar tax credit?
- No. Illinois Shines is the state's main incentive, and the federal residential credit ended December 31, 2025. Between Shines' upfront payment and supply-only netting, Illinois economics now favor systems sized for self-consumption rather than heavy exporting.