Why Now Is the Best Time to Install Solar in Illinois

How New Policies, Incentives, and Rising Energy Costs Make 2024–2025 the Perfect Window

Illinois residents are in a rare and powerful position when it comes to solar energy. Thanks to a mix of robust state incentives, the 30% federal solar tax credit, and current net metering programs, solar installations Illinois have never been more attractive or affordable.

However, this golden opportunity will not last forever. Changes to net metering, potential shifts in incentive programs, and rising electricity rates all point to one clear truth: now is the best time to install solar in Illinois if you want to maximize your financial return and energy independence.

Let's dive deeper into why Illinois homeowners should act now, before these advantages diminish.

Take Advantage of Full Retail Net Metering Before It Changes

Today, Illinois homeowners benefit from full retail net metering, a policy that credits solar customers for the excess electricity they send back to the utility grid at the full retail rate. This means if your Illinois solar panels generate more energy than you use, you essentially "store" that value for future use, drastically cutting or even eliminating your electricity bill.

But significant changes are on the horizon. Starting January 1, 2025, new solar installations will only qualify for supply-only net metering. Under this new structure, credits will apply only to the supply portion of your bill, not the delivery charges, taxes, or fees that make up a significant portion of monthly costs.

To lock in the full retail net metering benefits, your solar system must be fully operational and properly interconnected to the utility grid before December 31, 2024. Missing this window could significantly reduce your long-term savings and increase your payback period.

This looming deadline gives homeowners a strong incentive to start their solar projects now while the most generous policies are still in place.

Benefit from Generous Financial Incentives Available in Illinois

Illinois is one of the most solar-friendly states in the Midwest, offering several overlapping incentive programs that dramatically reduce the upfront cost of solar installations. These programs make going solar in Illinois more affordable today than at any time in the past.

Federal Solar Investment Tax Credit (ITC)

Homeowners who install solar panels by the end of 2032 can claim a 30% federal tax credit on the total cost of their system. This credit applies not just to panels but also to inverters, racking systems, permitting fees, and labor costs. A $20,000 solar project could yield a $6,000 tax credit, making solar much more financially accessible.

Illinois Shines Program

Through Illinois Shines, homeowners can earn money for the Solar Renewable Energy Credits (SRECs) that their systems generate. These credits can amount to $7,000 or more in incentives for an average residential solar installation. Unlike tax credits, SREC payments are often delivered as lump sums, providing quick financial returns to solar customers.

Illinois Solar for All Program

For income-qualified households, the Illinois Solar for All program offers dramatically reduced installation costs, often with little to no upfront expense. This initiative aims to make solar accessible to all Illinois residents, regardless of income level, while boosting the state’s overall renewable energy adoption.

With these incentives combined, many homeowners are finding that solar is not only affordable but can pay for itself far more quickly than ever before.

Solar Installation Costs Have Hit Record Lows

The price of installing solar panels in Illinois has fallen dramatically over the past decade. As of 2025, the average cost for a typical 5 kW solar system in Illinois is about $14,870 before incentives, and around $10,409 after the federal tax credit is applied. Larger systems, like a 10 kW setup, generally cost around $29,739 before incentives.

Given the incentives available through Illinois Shines, Solar for All, and the federal ITC, many homeowners can reduce their costs by thousands of dollars.

Additionally, the quality and efficiency of solar technology have improved significantly. Today’s panels are more efficient, durable, and long-lasting, offering better performance at a lower cost compared to systems installed even a few years ago.

Waiting to install solar in hopes of slightly lower costs in the future could mean missing out on the current stack of incentives and net metering benefits, which provide far more financial advantage than small future price drops might.

Short Payback Periods and Long-Term Savings

One of the most compelling reasons to install solar now is the incredible return on investment available to Illinois homeowners.

The average payback period for a solar system in Illinois is around 4.4 years. After that, the electricity your system generates is essentially free. Over a system’s 25-year lifespan, a homeowner can save upwards of $74,000 in energy costs.

Electricity prices in Illinois have been rising steadily due to increased demand and aging grid infrastructure. By installing solar panels now, you lock in lower energy costs and shield yourself from future utility rate hikes.

Every month that passes without solar is another month of paying full price for electricity, instead of generating your own clean, affordable power.

Protect Yourself Against Rising Electricity Rates

Energy costs are expected to continue climbing across Illinois. According to ComEd and Ameren reports, Illinoisans have already seen double-digit increases in electricity prices over the past two years.

Solar panels provide a hedge against rising utility rates. By generating your own electricity, you protect yourself from future price spikes and maintain control over your long-term energy costs.

The earlier you install solar, the sooner you start saving and the more you protect yourself from the uncertainty of utility pricing.

Enhance Grid Reliability and Help Build a Sustainable Future

Illinois has committed to reaching 40% renewable energy by 2030, and solar plays a major role in achieving that goal. By installing solar panels, homeowners are directly contributing to a cleaner, more sustainable grid, helping reduce pollution, fight climate change, and create a healthier environment for future generations.

Residential solar installations also help ease the strain on the electric grid, reducing the likelihood of brownouts and blackouts during high-demand periods. Every solar panel installed in Illinois moves the state closer to a more reliable and resilient energy future.

Conclusion: The Window of Opportunity is Closing

Illinois is currently one of the best places in the country to install solar, but the landscape is about to change. With the transition to supply-only net metering starting in 2025, homeowners who act now can lock in the most generous financial benefits and enjoy maximum energy savings.

When you combine full retail net metering, robust state and federal incentives, record-low installation costs, and the ability to protect against rising utility rates, there has never been a better time to go solar in Illinois than right now.

If you are ready to explore your solar options, reach out to a trusted Illinois solar installer today. The sooner you act, the more you save.