Solar incentives and rebates in Illinois: Illinois Shines, DG rebates and Solar for All

Solar incentives in Illinois remain among the most generous in the Midwest: as of November 2026, homeowners can earn Illinois Shines payments for the renewable energy credits (RECs) their system produces, plus a distributed generation (DG) rebate of $300 per kW from ComEd or Ameren Illinois for systems with a smart inverter. Income-qualified households can also join Illinois Solar for All.

The trade-off is that net metering for new systems now credits only the supply part of your bill, and the federal homeowner tax credit has ended for new installations. Here is how it all fits together.

Key takeaways

• Illinois Shines pays for 15 years' worth of expected RECs; under the Clean and Reliable Grid Affordability Act, signed January 8, 2026, Small DG projects get 50% at energization and the rest over six years.
• 2026-27 Small DG REC prices run from $60.92 to $80.77 per REC depending on size and price group, plus a $20 per REC adder for qualifying customer-owned systems that take no federal tax credit.
• ComEd and Ameren pay a $300 per kW DG rebate for solar with a smart inverter, and $300 per kWh for qualifying batteries.
• Illinois Solar for All serves households at or below 80% of area median income.
• The federal Residential Clean Energy Credit is not allowed for expenditures made after December 31, 2025, so Illinois systems completed in 2026 do not qualify.

Illinois Shines: the state's main solar incentive

Illinois Shines, also called the Adjustable Block Program, buys the RECs a system is expected to produce. One REC equals one megawatt-hour of solar output. EnergySage describes the payment as based on the RECs a system will generate over 15 years. Homeowners do not apply directly; an Approved Vendor (often your installer or its partner) submits the project and receives the payments.

2026-27 program year

The 2026-27 program year opened June 1, 2026. The Small Distributed Generation category covers projects up to 25 kW, and Illinois Shines reported a final 2026-27 Small DG block of 236.71 MW available at opening.

Small DG project size	Group A price per REC	Group B price per REC
0 to 10 kW AC	$70.37	$80.77
Over 10 to 25 kW AC	$60.92	$79.21

Which group applies depends on where the project is; your Approved Vendor will know. For the 2026-27 program year, Illinois Shines offers an extra $20 per REC for Small DG projects that are customer-owned (not leased) and that have not received, and are not expected to receive, the federal investment tax credit or residential clean energy credit. The Approved Vendor must disclose the adder and attest to these conditions, and it is removed if ownership changes or a federal credit is taken.

How the money reaches you

The Clean and Reliable Grid Affordability Act changed how Small DG projects are paid: 50% of the REC contract value comes at energization, with the rest paid ratably over the following six years. Illinois Shines said in April 2026 that its new 2026 REC contract applies to applications the Illinois Commerce Commission approves from June 1, 2026. Payments go to the Approved Vendor, not to you, so ask whether your quote passes the REC value to you as a lower price or as later payments, and check that the disclosure form you sign says so.

ComEd and Ameren solar and battery rebates

Since 2025, ComEd and Ameren Illinois customers can get a DG rebate. The Citizens Utility Board (CUB) fact sheet summarizes the terms:

• ComEd solar rebate: $300 per kW of DC nameplate capacity, paid by check within 90 days of energization. A 6 kW system would get $1,800. A smart inverter set to ComEd's tariff is required.
• Ameren Illinois smart inverter rebate: $300 per kW based on inverter nameplate capacity. An 8 kW inverter would get $2,400.
• Battery rebates: $300 per kWh of battery capacity at both utilities, with rate conditions. ComEd requires its hourly pricing rate (Rate BESH); Ameren requires Peak Time Rewards, Real Time Pricing or Power Smart Pricing, a choice CUB says is binding on the current customer at the residence.

Older systems should be careful. If a system installed before 2025 takes the generation rebate, its net metering credits shrink to the supply section of the bill. Taking only a storage rebate does not change full net metering status. See our guide to battery storage incentives for more on storage programs.

Illinois Solar for All for income-qualified homes

Illinois Solar for All (ILSFA) helps households at or below 80% of area median income go solar, with the limit depending on household size and location. According to CUB's guide:

• Homeowners can go solar for little to no cost, through a purchase, lease or power purchase agreement.
• Ongoing program costs cannot be more than 50% of the value of the electricity produced.
• Homes must be "solar ready," including a roof with at least 15 years of life left and a modern electrical panel. Some upgrades may be covered through the state weatherization program.
• Customers of some municipal utilities and co-ops may not be eligible.

The Climate and Equitable Jobs Act raised ILSFA's budget to $50 million a year. Check current openings on the program's own website, illinoissfa.com, or call 1-888-970-4732.

Property taxes and other Illinois solar incentives

Illinois law (35 ILCS 200/10-10) lets an owner whose property has a solar energy system file a claim with the county's chief assessment officer for an alternate valuation. The assessor values the improvements as if they had a conventional heating or cooling system and as equipped with the solar system, and uses the lower figure. The statute is written in terms of heating and cooling, so ask your county assessor's office how it treats a rooftop solar electric system. EnergySage (updated September 2026) describes Illinois as not taxing the value solar adds to a home.

We did not find an Illinois state income tax credit for home solar when we checked in November 2026. If an installer advertises one, ask for the official program page.

Federal tax credit status for Illinois homeowners

The federal Residential Clean Energy Credit is gone for new systems. In an August 2025 FAQ, the IRS says the Residential Clean Energy Credit (section 25D) is not allowed for any expenditures made after December 31, 2025, and that an expenditure is treated as made when the original installation is completed. A home system finished in 2026 does not qualify. Illinois Shines' $20 per REC adder is limited to customer-owned projects that take no federal credit. Read more in our guide to the federal solar tax credit.

Net metering: how it affects Illinois incentives

For ComEd, Ameren and MidAmerican customers, systems interconnected after December 31, 2024 get supply-only net metering: exported energy offsets the supply portion of the bill, but not delivery charges. CUB says these credits do not expire. Systems that qualified before the deadline keep full net metering for 30 years from permission to operate. Our guide to net metering in Illinois explains the details.

How to apply for Illinois solar incentives

1. Choose an Approved Vendor for Illinois Shines and ask how the REC value appears in your price.
2. Confirm the inverter is a smart inverter eligible for your utility's DG rebate.
3. Your installer files interconnection and net metering paperwork; Ameren uses PowerClerk.
4. Track the DG rebate after energization (ComEd pays within 90 days).
5. Ask your county assessor whether the alternate valuation claim applies to your system, and file it if so.

Check production estimates on our Illinois solar panels page and utility prices on our Illinois electricity rates page.

Stacking Illinois incentives: a simple illustration

Consider a homeowner in ComEd territory buying a 7 kW DC system with a smart inverter. The ComEd DG rebate would be 7 times $300, or $2,100, paid after energization. On top of that, the Approved Vendor would apply for Illinois Shines, where the REC value depends on the system's expected output, its AC size band and its price group. If the system is customer-owned and no federal credit is claimed, the $20 per REC adder can apply. Under a 2026 contract, only half of the REC value arrives at energization, so if your installer is giving you the full REC value as an upfront discount, ask how that is financed and what happens to the later installments.

A few watch-outs:

• Make sure your quote does not count a federal tax credit.
• Confirm in writing whether REC payments come to you or reduce your price.
• If you add a battery, check the rate plan the battery rebate requires before you apply.

Next steps

Ask each installer for an itemized quote that shows the system price, the Illinois Shines value and the DG rebate separately, with no federal tax credit included. Then compare them in our solar quote checker.