Thursday, November 24, 2022

How Much Does It Cost To Go Solar In Illinois

How Much Can You Save With Community Solar

How Much Does Solar Cost in Missouri & Illinois?

Typically, savings is 10-20% off your electric bill. Of course this depends on your utility in Illinois. There is no cost to join!

Here are some benefits of Community Solar:

  • First, there are NO installation costs.
  • Second, its very quick to sign up and start saving.
  • Additionally, there is NO panel maintenance since you are not in charge of the array.
  • No cancellation fees .
  • Most importantly, you support renewable energy!

Illinois’ Srec Incentive: The Adjustable Block Program

Illinois renewable portfolio standard means the state is committed to producing 25 percent of its electricity from renewable resources by 2025. Thats an ambitious goal, and to make it happen, the state has a program that rewards homeowners for helping Illinois reach that target. Under the Adjustable Block Program, also known as Illinois Shines, for each megawatt hour of electricity your solar system produces, you will be granted one Solar Renewable Energy Credit that you can then sell in the market, creating a nice income stream for the life of the system.

UPDATE: as of 2021, the Adjustable Block Program is no longer accepting new incentive applications.

Summary Of Illinois Solar Incentives 2022

Solar makes you a lot of money in Illinois. Yes, we said “makes!” Even though electricity prices are relatively low, the state gets enough sun that solar power saves you big money from day 1.

Since home solar is cheaper than ever before, which, combined with the Feds’ 26% solar tax credit and Illinois’s new direct SREC payments, means a solar panel system pays itself back quickly and makes you lots of money over its 25-year warrantied life!

Illinois adjustable solar block grant program, aka Illinois Shines, continues to produce strong results for homeowners and installers alike in 2020. However, theres a need for state lawmakers to get more aggressive here with a solar energy harvesting requirement for utilities so the state can hit its 25% renewable energy goal by 2025.

Regardless, it’s still a very wise move to go solar as a homeowner here. Take a good look at our rundown of Illinois solar power incentives below.

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Discover The Incentives Tax Credits And Solar Rebates Illinois Has To Offer*

Incentive

Value

Federal Solar Investment Tax Credit **

The 26% federal tax credit is available for purchased home solar systems installed by December 31, 2022.6

Solar Renewable Energy Credits

Compensation per kilowatt-hour produced by the system.7

Solar Energy System Property Tax Incentive

Property tax exemption on the added home value from the rooftop solar system.8

Illinois Solar for All Programs

Qualified low-income households can get funding to install solar panels in Illinois.9

Frequently Asked Questions About The Cost Of Solar

How Much Do Solar Panels Cost?

Solar energy cost has plummeted in the past decade. The average cost of solar panels is less than half what it was ten years ago.

As of the time we updated this page , most solar panel prices fall in the range of 60 cents to 70 cents per watt. Premium panels can climb above $1 per watt depending on their size, quality, and where they are manufactured. Our solar panel calculator uses standard size panels to estimate the cost of your system.

Solar panel installation cost varies by provider. A turnkey solution will charge 100-200% the cost of equipment to perform the installation.

If your 6.6 kW system costs $10k in equipment, they may charge you $20k for the installation, bringing the grand total for the project to $30,000.

The other option is to buy direct from a distributor and either install it yourself or hire a local contractor to do it for you. If you choose the self-install solar panels, we have instructional videos and a brilliant tech support team to walk you through the project. Some people spend less than $1000 installing their own system .

Even if you hire a local contractor, theyll charge you somewhere between 75 cents and $1.25 per watt. Theyd install the system above for around $6000-$7000, which is less than half the amount youd pay to a turnkey installer.

Thats why youre here! Our solar power calculator takes the information you provide about your energy usage patterns and returns our best guess about how much solar energy you might need to generate.

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How Much Does Solar Panel Installation Cost In Illinois

Currently, everyone is conscious of climate change, especially on its disastrous effects on nature. Because of this, everyone tries their best to do their part in saving the environment. And one of the effective ways in staving off climate change is to make use of solar energy.

Illinois is a state in the U.S. that is actively pursuing solar energy. This is not surprising. The state is known for its farmlands, forests, rolling hills, and wetlands, so with its natural beauty, the people in Illinois want to preserve that. For that reason, the government of Illinois is doing everything in their power to persuade people into installing a solar panel system into their properties .

But if youre in Illinois and youre interested in going solar, there is one thing that you need to take into consideration first. And that is the solar installation costs in the state.

How Long Does It Take To Pay Back My Solar Investment

This is the question on many consumers’ minds – “If I install solar panels in the interest of bringing down my energy bills, how long will it take to pay off and start enjoying the benefits of lower electricity usage?”

First, let’s note that the payback period refers to the amount of time it will take your solar investment to pay for itself in saved energy costs. The average payback period for solar systems in the U.S. is six to eight years.

The length of your payback period will depend on how big your solar system is, the rebates and incentives available to you, and how much you’re currently paying for your utilities.

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How Is Solar Panel Cost Calculated

The cost of solar panels is calculated in dollars per watt. Watts is the metric used to measure your systems solar panel production. How much electricity your solar panel array can produce depends on the size of your system, solar cell efficiency and the amount of sunlight the panel receives.

However, solar panel output is not the only factor you should consider when determining the total cost of going solar. Installation costs impact the final price as well. The good news is, we give you a free in-home consultation where we determine the size of solar system thats right for you, and the type, whether it is roof-mounted or ground-mounted.

Illinois Solar Power: Check Your Savings Costs Tax Breaks Incentives And Rebates

MISSOURI & ILLINOIS: How Much Do Solar Panels Cost?

If you live in the state of Illinois, the switch to solar can give you considerable cash savings over its service life.

Although , Illinois offers an attractive combination of incentives for solar power, in the form or rebates and tax benefits that greatly reduce the upfront cost of owning a PV system.

Once the system is in operation, you are eligible to receive performance payments and have access to a favorable net metering policy. The end result is that becomes a great investment,comparable to a successful business, once you break down the project financials.

According to the US Department of Energy, the state of Illinois receives a yearly average of 4 to 5 peak sun-hours per day, with the highest potential located to the south of the state.

you can expect to get from 4 to 5 kWh of electricity each day for every kilowatt of solar power capacity you install

Sure, there are sunnier places in the USA, but this limitation is offset by the great solar power incentives available in Illinois.

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What Is Community Solar In Illinois

In Illinois, community solar is a way for neighborhoods to support solar energy with no need to install the array on their property. In exchange for signing up, customers receive a credit on their electric bill. Community solar lowers electric costs over time, boosts economic growth and supports clean power.

Community solar farms are developed and installed in areas with a lot of land. As a result, developers maximize the amount of power an array can produce. In order for you to be a part of a community solar farm, it must be in your service area. Typically, solar farms are right down the street, nearby your home or office.

The utility reduces the use of fossil fuels by using renewable energy through these programs. Because of this, community solar improves the the electric grid. Utilities can now balance their generation with the use of clean energy. The utility does infact encourage you to explore community solar options. Not only are you supporting clean energy but now also the utility.

It is important to note that in Illinois, to subscribe to a community solar project, you must receive your energy directly from the utility and not a third party supplier.

Illinois Solar For All Programs

Under the Illinois Solar for All Programs, any Illinois household that makes less than 80% of the Area Median Income is eligible for no up-front cost solar system. This solar energy system can be made available either through a solar lease or in the form of communal solar energy systems. Installing solar panels is not obligatory to enjoy solar energy anymore.

Your solar panel installation can be placed elsewhere. Every solar installer company is obligated to offer at least one kind of no up-front cost solar solution. Your Illinois solar incentives keep getting better.

Also Check: How Do You Make A Solar Cell

Is Solar Power A Good Investment In Illinois

Adding solar panels can be an excellent short-term and long-term investment. To get the best return on investment, your roof should receive a decent amount of sunshine and not be covered by trees or other buildings. Check out the previous section for more information about the best conditions for home solar.

Diy Vs Hiring A Professional Solar Installer

Illinois Solar Panels Cost

DIY kits fall around $1 to $2 per kilowatt. Considering that having the entire process handled by a professional contractor averages around $2.50-3.50 per kilowatt, you may not be looking at a lot of savings.

Size
$25,000 – $35,000

*Pre-tax credit cost.

Going with a professional has many benefits and the price difference is often insignificant. A professional will be able to help you with design, will be able to get higher quality products and materials at a lower rate, and will also be useful in acquiring permits and tax credits.

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Example Cost Of Not Installing Solar

If youre like many Americans, youve probably seen a recent increase in your energy rates. When you dont have solar panels, youre essentially renting all your energy from the utility company, always susceptible to sudden rate increases. And those increases will just keep coming year after year. However, you have the power to put an end to it all right now by choosing to install your very own solar energy system!

When you go solar, you get true energy independence by standardizing your monthly energy costs and even having the opportunity to sell some of that energy back to the power companies!

This chart shows an example of what your total energy costs would be over the next 25 years .

You can make a precise calculation of your cost of not going solar by looking at your average annual energy costs.

Once you get your total solar installation cost, compare it to what your cost would be if you chose not to install solar. Chances are youll see that the system is going to pay for itself! Its a no-brainer to install solar now and join the millions of other Americans who have gained their energy independence!

  • Year #1$1320.00
  • Total Cost Over 25 Years without Solar$48,126.23

Now that you know your cost of doing nothing

How Many Panels Do I Need

The size and cost of your system largely depends on your annual electricity usage and your propertys sun exposure. Comparing as many solar options as possible can help you avoid paying inflated prices for your system. We recommend getting at least three quotes.

Most solar companies will offer a free off-site quote, where they request your annual electricity usage and look up your propertys solar exposure to give you an estimate without a physical site visit. You can also check out Project Sunroof or PV Watts.

If you use less energy, youll need fewer solar panels to account for your electric load. Make sure youre not using more energy than you need by investing in energy-saving equipment and weatherizing your home. Check with your utility company to see what energy efficiency programs they offer. You may already be paying for such programs on your bill, so you should take advantage of them. More ways to cut your energy use and lower your solar project cost:

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Using A Power Purchase Agreement

A Power Purchase Agreement is a great way to go solar if you dont have cash or equity in your home. With a PPA, it is possible to get solar panels with no downpayment and still see big savings over 25 years.

In Illinois, the electricity costs arent very high, but since the Illinois sun is enough to make solar power really profitable, solar energy in the state is cheap. This means that a PPA can save you money starting on the first day. And these savings will only get larger over time because as the utility company raises rates, your PPA costs will also go up by a smaller amount.

The Solar Tax Credit: Solars Best Incentive

How Much Do Solar Panels Really Cost?

The best incentive for going solar in the country is the federal solar tax credit, or the investment tax credit . This incentive allows you to deduct 26 percent of the cost of installing solar panels from your federal taxes, and theres no cap on its value. For example, a 10 kW system priced at the national average comes out to $27,600. However, with the ITC, youd be able to deduct 26 percent of that cost, or $7,176, from your taxes. This essentially reduces the cost of your system to the $20,424 price tag we highlighted at the beginning of this article.

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How Much Does It Cost To Install Solar Panels In Illinois

Depending on your area and other factors, an average 5 kW solar installation can cost you around $13,400 $18,100. Your energy costs will be significantly reduced, as your home solar system produces energy for a fraction of the cost of utility power. The initial investment pays off in as little as 6.5 9 years.

Are Solar Panels Worth The Investment

Thanks to the lower-than-ever cost of solar panels and various solar incentives, solar panels are a cost-effective investment for the majority of homeowners that will provide an excellent return on investment.

Not only do they lower your energy bills, but you also get to power your home with clean renewable energy and reduce your dependence on your local utility company.

Even though spending up to $20,000 is daunting, federal incentives eliminate 26% of solar system costs after 1 year. There are also various ways to finance a solar system – from solar loans and leases to PPAs – so you can pick whichever option that works best for you.

Plus, solar panels provide significant utility bill savings in most areas. An average home solar panel system can save between $1,000 and $1,600 per year on electricity bills depending on the states net metering policy and the homes energy consumption.

Actual solar savings will depend on the system size, the cost of electricity, home energy usage, and what net metering policies are in place, but the average solar homeowner can expect their solar payback period to be between 8 and 11 years. After that, theyll be enjoying completely free solar electricity for at least 15 more years!

If youre still not convinced, you can use our solar panel calculator to find out how much solar costs and can save you for your specific home based on your average electric usage and prices in your area.

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What Is Driving The Declining Cost Of Solar Power

One of the main drivers bringing down the cost of solar power in the last decade is the tremendous growth in solar panel installation. Solar generation has experienced an average annual growth rate of 49%, which activates whats called the economy of scale. Thanks to increasing demand across the private and public sector for clean electricity, there are now more than 89 gigawatts of solar capacity installed nationwide, enough to power 16 million homes.

Add to that the impact of technological improvements and a competitive marketplace among a large base of experienced, internationally active project developers, and you have all the ingredients for a financial adjustment in the cost of solar.

Thus, solar panel installation cost has dropped by more than 70% over the last decade, leading the industry to expand into new markets and deploy thousands of systems nationwide.

Over the next 20 years, solar research firm Wood Mackenzie expects more than 2.6 terawatts of solar power to come on stream globally, taking renewables share of the worlds power capacity, including wind power, from 10% today to an impressive 30%.

And while the solar panel cost decreases, advancements in solar panel materials and methods used for fabricating photovoltaic solar cell has gotten better, too! Keep reading to learn more.

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