Additional Considerations And Costs
- Permits. Permits are required in Illinois to install solar panels. Speak to your local municipality for more information.
- Licenses. Make sure your installer is licensed and insured before having them start work on your home.
- Warranties. Solar panels may have different warranties, depending on the company and installation type. Speak to your installer about what warranties may be available for you.
- HOAs. If you live in an HOA, they may have restrictions on the types of solar panels you can use and where they can be installed. Speak to your local association head for more information.
- Environmental zoning. If you live in an area that has been zoned as environmentally sensitive, you may have additional permitting and inspections to install solar panels. Speak to your local municipality if you think this may impact you.
- Home value. Solar panels generally raise the value of a home by around 4%, but this varies.
- SRECs. Illinois offers a Solar Renewable Energy Certificate program that allows you to sell credits for the amount of solar energy you are expected to produce. Speak to your local utility company for more information.
- Location. The area you install your panels in can impact the project cost. Solar panels in Chicago cost more than in other parts of the state, while most areas in the south have lower costs.
How Do You Get The Best Solar Prices In Illinois
The best way to ensure you pay as little as possible for your panels in Illinois is to take advantage of solar incentives. Perks like the federal credit, local benefit programs and solar rebates can reduce your upfront and total system costs by thousands of dollars.
Below are some of the best options to keep your installation price down and your energy savings maximized in Illinois:
- Make sure you file for the federal tax credit
- Accrue and sell solar renewable energy certificates
- Participate in net metering if you can
- Get multiple quotes for your solar power system
Well explain why each of these steps is important in the following sections.
Solar Panel Cost Illinois: Prices & Data January 2023
As of Jan 2023, the average cost of solar panels in Illinois is$2.57 per watt making a typical 6000 watt solar system$10,781 after claiming the 30% federal solar tax credit now available.
This is lower than the average price of residential solar power systems across the United States which is currently $3.00 per watt.
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The Federal Solar Tax Credit
Dont forget about federal solar incentives! With the investment tax credit , now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright , and that you must have enough income for the tax credit to be meaningful .
Illinois Solar Incentives Tax Credits & Rebates
If youre thinking about purchasing residential solar in Illinois, youll want to know about the solar incentives available to you. With varying options that include a federal tax credit and a property tax exemption, these incentives are attractive in different ways. Most importantly, they can decrease your buyback period.
- Federal solar tax credit Homeowners who go solar can get a 30% credit on their federal taxes if their solar energy system is eligible*.
- Net metering You could earn credits on your electric bill by selling the excess energy your array produces to your utility company1.
- Solar renewable energy certificates Also known as Illinois Shines/Adjustable Block Program, SRECs are credits you can earn depending on your solar panel systems production. You earn one certificate for each MWh of electricity your solar system produces over 15 years .
- Property tax exemption According to the terms of this solar incentive, installing a rooftop array wont increase your property taxes .
- Illinois solar rebate program You could be eligible for a solar rebate from your utility company.
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Ppa Options In Illinois
A PPA, or Power Purchase Agreement, can be considered an alternative version of a lease where you purchase the energy output of the solar PV system instead of paying a monthly fee.
Of course, the price you pay is below utility rates, so you start saving cash right away from the first month.
The option of getting a PPA is available in Illinois, and over the duration of the agreement you can expect to save approximately the same amount of money as if you had leased the PV system.
Solar Panel Installation Cost In Il By System Size In 2023
The size of a solar panel system also plays a role in how much the installation will cost.
Larger solar installations will typically have a lower cost per watt, because the panels can be purchased at a bulk price. However, these larger solar systems will still have a higher total cost, because they are made up of more individual panels.
Table 2: Average cost of residential solar systems by system size
| System size* |
|---|
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Comed Commercial Solar Rebates
ComEd, one of ILs largest utility companies, provides rebates for commercial and industrial customers to help decrease the out-of-pocket costs of installing solar. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt of installed solar power. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity.
Purchasing Solar With Loan Funds In Illinois
If you compare the loan graph above with the purchase graph below, youll see that a purchase leaves you with more money at the end. Nevertheless, theres a significant cost to you at the beginning and for the first eight years. When you pay for your solar energy system with loan funds, you have nothing to spend and everything to gain.
In some states, if you dont have $16,000 available to purchase solar panels, your other options arent so sunny. In Illinois, however, your home equity is actually a better way to finance your installation. Even if you can afford to pay for the panels yourself, its worth taking the loan and doing something else with your own money. Youll still get your federal tax credit of 30 percent.
All you need to do is get a home equity line of credit for about $16,000, with a repayment period of 15 years and a fixed interest rate of 5 percent or less. If you dont qualify for a rate that low, dont necessarily reject the idea of a loan. You might not make as much as shown in the graph here, but youll still see profits every year, because your savings in energy costs will be so substantial.
The bottom line is that few investments today offer the same returns as a solar energy system purchased with borrowed money.
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House Methods Solar Companies Rating Methodology
At House Method, transparency and trust are our most important values for the reader. Thats why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy companys services, costs, and products. Weve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:
Other Solar Resources
Calculating The Cost Of Solar Panels For Your Specific Home In Il
Installation costs for solar will vary with your location and the size of your homes electricity bill. To be meaningful solar cost information needs to be tailored to the individual situation. If you enter your details into the solar calculator below you will get a solar cost and savings estimate and find out how much solar panels will cost for your home based on current offers from your local solar installation companies.
Who are the best solar panel installation companies in Illinois that offer the best deals on quality solar systems?
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What Factors Affect The Cost Of Solar Panel Systems In Illinois
Most Illinois residents pay between $9,500 and $21,000 for their solar arrays. As you can see by the range weve provided, your total cost can vary based on several factors. The best way to get an accurate estimate is to use a customized solar calculator or have an installer provide a quote for you.
Well discuss some of these factors below and explain how each one brings your installation costs up or down.
Do Solar Panels Increase Home Value In Illinois
Yes! Solar power systems can be expensive upfront, but they can increase the value of your home quite significantly. This is especially true in a state like Illinois, which has great net energy metering policies, SRECs and other state incentives and rebates.
According to estimates from Zillow, homes with solar panels sell for around 4.1% higher than those without. In Illinois, where the average home value is about $246,760, that means a solar power system can add approximately $10,117 to the value of your house.
One of the benefits of bumping your home value in Illinois is that the states Property Tax Exemption guarantees that your property taxes wont increase from the added value.
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What Is The Solar Payback Period In Illinois
Simply put, the solar payback period is the time it takes for the property owner to make back their initial investment in solar energy. For most people who have installed a solar installation in their properties, the solar payback period is about 8.5 years. But in Illinois specifically, the typical solar payback period is around 9.06 years.
The Time For Home Solar In Illinois Is Now
On top of these solar tax credits, incentives, and rebates, Sunrun’s home solar and battery plans in Illinois start at $0 down. Ameren Illinois, Commonwealth Edison Company , and MidAmerican Energy Company offer net energy metering programs that could let you earn credits on your bill for the excess solar energy you produce and send to the grid.11,12,13 Net metering in Illinois could help you save money on future electric bills.
To check if our solar and storage products and services are available in your area, use our Product Selector or request a quote to get one-on-one service from our expert Solar Advisors. Sunrun solar and storage quotes are always free.
- Learn about the federal tax credit
- Find your ideal system and battery
- Get your cost to go solar today
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Solar Energy In Illinois May Help Lower Your Electric Bills
Not only are there tax credits and rebates in place to help you save money on your solar panels, but youll also experience long-term savings in the form of lower electric bills.
Lets say you purchase a home solar system for $15,000. Thanks to the federal tax credit, youll save $3,900 right off the bat. Then, youll save money each month when you dont have to buy electricity. In May 2021, the average Illinois electric rate was 14.24 cents per kWh. Even if you only save $100 per month, thats $1,200 per year. Below you can see how that would affect your return on investment.
| Average initial investment |
|---|
| $6,600 |
Sell Excess Electricity With Net Metering Program
The Net Metering policy in Illinois has made it easier for its customers to sell unused electricity back to the grid instead of storing the energy in batteries. If your system includes a renewable electric generator, you may interconnect to your electric companys grid and receive credit for unused electricity. Your PV system will pay for itself primarily through the Net Metering program by selling solar energy that you havent used into the commercial grid and gaining credits from the utility company for it. The credits later can be used to cover your electric bills.
In Illinois, credit value is equal to the full retail electricity price. If you have unused credits, they will roll over to the next month and can help offset future electricity usage. Make sure to sell any remaining credits to the grid as they will expire in one year.
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Cost Of Installing Solar Panels In Illinois By Type
Solar panels in Illinois can be installed in two ways – grid-tied and off-grid. The most common method in Illinois is grid-tied. Using this method, you remain connected to the main power grid so that you can still draw from the grid at night or during inclement weather. Illinois has many incentive programs for residents that require the system to remain grid-tied to be effective, such as SRECs and net metering.
However, it is also easy to go off-grid. This means you fully disconnect from the power grid and supply your own energy. For an off-grid installation, you need a much larger system and batteries to power your home at night or in inclement weather. You may also need a backup system, such as a generator or wind power. Because these systems are so much larger, they cost considerably more than grid-tied systems. Below are the average costs to install both systems in Illinois.
| Type |
|---|
| $49,500 – $60,300 |
What Happens If I Produce More Solar Power Than I Need
Your home will still be connected to the electric grid so you have power when your system is not producing. Excess energy produced beyond what your home is using at any moment can flow back into the grid, and will earn you credit on your electricity bill. If you choose to integrate energy storage with your solar power system, any excess energy that is produced and not immediately used by your household will function to charge your battery. This, in turn, allows you to access stored solar power for your home when energy usage exceeds production, and provide valuable backup power during an outage.
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Is My Roof Ready For Solar
If you want to install solar panels on your roof, youll need to consider a number of factors, which an installer should assess during an on-site evaluation. Your solar installer will walk you through it, but here are a few things to consider:
1. How much of your roof is shaded?
Check out an aerial view of your home on Google Maps. If you cant see the majority of your roof, you may not get enough sunlight to justify the costs of installing your own system.
2. How old is your roof?
Replacing your roof after installing a solar panel system creates additional costs, and most solar panels are warrantied for 25 years, so if your roof is asphalt singled and over 10 years old, consider roof replacement prior to installing solar panels.
3. Can the size, shape and slope of your roof support solar panels?
A south-facing roof is ideal for solar panels. East and west-facing roofs are okay too but would require 10-20% more panels than a south-facing system, in order to produce the same output. North-facing roofs are not ideal unless the roof is at a very low pitch .
4. What type of material is your roof?
Asphalt, tile and metal roofs tend to be an easier surface for installing solar panels. Slate and wood roofs make for more expensive installations.
5. Can you install panels somewhere other than your roof?
If you have open land that gets a lot of sun, a ground mount system could be a good alternative to installing a system on your house.
Cost Of Solar Panels In Illinois
The cost of solar panels in Illinois varies based on several factors, including the size and complexity of your residential solar system, as well as local labor and permitting costs.
In general, you can expect to pay between $3 and $5 per watt, with an average price tag of between $15,000 and $25,000 for a residential system. Keep in mind that this price is before any tax credits and rebates, which can help to reduce your out-of-pocket costs.
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How Solar Panel Installation Works
Solar installation is a straightforward process. Your solar company will handle most, if not all, steps. A representative will begin by holding a consultation to assess your energy needs and home design.
Matt Johnson, co-owner of Namaste Solar, says that a reputable installer should supply an itemized list of the costs for each aspect of the installation, including labor, permit fees, sales taxes, utility fees, the interconnection fee, and so forth. The installer should also include available tax incentives.
After that, your installer will design a system tailored to your homes specifications and handle required permits from your local municipality. Finally, they will install the system and conduct final inspections. This process can take up to 60 days to complete.
Watch our video below to get a better understanding of what the solar installation process entails.
