Illinois residential solar energy incentives

Solar energy rebate program - DECO

The Department of Commerce and Economic Opportunity offers rebates of up to 30% of the total cost of any solar PV, solar thermal or solar water heating system.

Maximum incentive amount is $10,000.

Qualifying systems must be approved and meet all specified requirements.

Illinois Solar Energy Association – Renewable Energy Credit Aggregation Program

ISEA purchases renewable energy credits from participating customers who generate power with solar photovoltaics at $0.06 per kilowatt.

To retain ownership of renewable energy credits, a net metering agreement may be necessary in some cases.

Eligible PV systems must complete one year of field testing or be UL listed.

Residential renewable energy tax credit

This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion

This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages

This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.