Solar Panel Incentives and Rebates in Central Illinois
If you’re in Chatham or elsewhere in Central Illinois and considering solar panels for your home, you may be able to take advantage of several state and local programs designed to make solar energy more affordable.
While the federal solar tax credit that many homeowners remember is no longer available for new residential solar expenditures, Illinois continues to offer incentives that can help reduce the cost of installing a solar energy system. Programs such as Illinois Shines and Illinois Solar for All can provide financial benefits through Renewable Energy Credits, while net metering can provide credits for excess electricity your system sends back to the grid.
The solar installation experts at MB Heating & Cooling can help you understand which programs may apply to your home and solar installation, so you can make a more informed decision about going solar.
Illinois Solar Incentives for Homeowners
Several Central Illinois programs may help homeowners offset the cost of solar panels or reduce their ongoing electricity expenses. Eligibility and savings can vary based on your location, utility provider, system, and household circumstances.
Net Metering in Sangamon County, Illinois
Net metering can provide credits on your electric bill when your solar panels produce more electricity than your home uses. Excess electricity can be sent back to the grid, with eligible customers receiving credits on their utility bill.
If you’re considering solar in Sangamon County, it’s important to know that net metering policies aren’t the same everywhere. The rules that determine how your solar energy is credited depend on which electric utility serves your property. Municipal utilities, electric cooperatives, and investor-owned utilities may each have different requirements, credit rates, and program terms.
Sangamon County Utility Providers & Solar Credit Policies
Ameren Illinois: Most residents in Central Illinois are served by Ameren Illinois. Under the updated 2025 rules, excess solar energy sent to the grid is credited at the applicable electricity supply and transmission rate rather than the full retail electricity rate. Unused credits for newer systems can carry forward indefinitely.
Chatham: Chatham has a municipal electric distribution system that operates independently of Ameren Illinois. As a result, solar customers in the Village of Chatham follow its interconnection, application, and billing requirements. Homeowners should review the village’s current solar and net metering procedures before installing a system.
Springfield CWLP: City Water, Light & Power (CWLP) serves Springfield residents and administers its own net metering solar program. Residential systems up to 25 kW can qualify for credits based on a 1:1 retail electricity rate.
Rural Electric Cooperatives: Properties located outside municipal utility service areas may be served by Ameren Illinois or a local electric cooperative. While statewide solar policies provide the foundation for net metering, the exact way excess generation is credited can vary by the co-op.
Illinois Solar for All
Illinois Solar for All (ILSFA) is designed to make solar more accessible to income-eligible households, qualifying nonprofit organizations, and public facilities. Participants may be able to install solar with little or no upfront cost while reducing their electricity expenses.
Illinois Shines
Illinois Shines is a statewide solar incentive program administered by the Illinois Power Agency. The program can help reduce the overall cost of solar installations for residential and community projects. Illinois Shines is not an income-based program, so homeowners who do not qualify for income-based solar assistance may still be eligible to benefit from the program.
Illinois Solar Property Tax Benefit
Installing solar can increase your home’s market value; however, Illinois offers a property tax benefit for qualifying solar energy systems that can help homeowners avoid a higher tax bill after going solar.
Under the state’s alternate valuation rules, the added value associated with a qualifying solar installation is not simply added to your property’s taxable value. Instead, the county assessment officer compares the property’s value with conventional heating or cooling to its value with the solar system and applies the lower valuation.
To claim the benefit, homeowners must file for the alternate valuation with their county’s chief assessment officer. The tax benefit continues as long as the qualifying solar energy system remains in use. Because property tax administration is handled locally, homeowners should confirm the filing requirements and applicable forms with their county assessor.
Chicago Green Permit Programs
Some solar projects within the City of Chicago may also qualify for the city's Green Permit Program, which can provide expedited permitting for projects that meet applicable green-building criteria. Because these programs are specific to Chicago, they do not apply to homes in Chatham or other Central Illinois communities.
If you’re installing solar outside Chicago, MB Heating & Cooling can help you identify the local programs and requirements that may apply to your property.
What Happened to the 30% Federal Solar Tax Credit?
If you’ve searched for solar incentives recently, you’ve probably seen information about the 30% federal Residential Clean Energy Credit, also known as the federal solar tax credit or Section 25D.
That information may still appear on older solar websites, but the federal Residential Clean Energy Credit is no longer available for new residential solar expenditures made after December 31, 2025. The previous credit allowed qualifying homeowners to claim 30% of eligible solar installation costs, which is why so much older information still references a 30% federal solar credit.
For homeowners who completed qualifying projects or made qualifying expenditures before the deadline, different rules may apply. If you previously installed solar or believe you may have qualified for the credit, consult a qualified tax professional about your individual tax situation.
For new solar installations today, however, homeowners should focus on current Illinois programs, utility incentives, and available local benefits.
Frequently Asked Questions About Illinois Solar Incentives
Is there still a 30% federal tax credit for solar panels in 2026?
No. The federal Residential Clean Energy Credit under Section 25D is no longer available for new residential expenditures after December 31, 2025. Many websites still reference the former 30% credit because that information was accurate before the federal law changed, and it has not yet been updated.
What solar incentives are available in Illinois in 2026?
Illinois homeowners may have access to programs including Illinois Shines, Illinois Solar for All, net metering, and the state's solar property-tax valuation benefit. Eligibility varies by program, utility, property, and household circumstances.
Does Illinois Solar for All apply to homeowners?
It can. Illinois Solar for All is designed for income-eligible households and provides options for residential and community solar. Eligible participants may be able to receive affordable solar installations and save on their electricity bills.
Can I get credits for the excess electricity my solar panels produce?
Potentially. Under Illinois net metering rules, eligible solar customers can receive credits for the electricity their system sends to the grid. The specific value and treatment of those credits depend on the applicable utility rules.
Will solar panels increase my property taxes in Illinois?
A qualifying solar energy system does not necessarily increase your home's assessed value. Illinois allows eligible property owners to request an alternate valuation of improvements equipped with a solar energy system. The applicable rules and filing requirements should be confirmed with your county assessment office.
Are solar incentives available in Chatham, IL?
Illinois homeowners in Chatham may be eligible for statewide programs such as Illinois Shines, Illinois Solar for All, and applicable net metering programs. Additional incentives may depend on your electric utility and local requirements.
Because solar incentives and utility programs can change, it's important to evaluate the programs available at the time you purchase and install your system.
Find Out Which Solar Incentives May Apply to Your Home
Understanding solar incentives can be confusing, especially when older information about expired federal tax credits is still online.
The good news is that the end of the federal 30% residential solar tax credit doesn’t mean there are no incentives for Illinois homeowners. State programs, utility credits, and other financial benefits may still help make solar a worthwhile investment.
Our Central Illinois solar paneling experts can help you understand your options and determine which programs may apply to your home and solar project.
Call MB Heating & Cooling today at 217-544-4328 or request service online for a free solar consultation and learn how you can make the most of the incentives currently available in Illinois.
Disclaimer: Solar rebate, incentive, tax credit, and program information provided on this page is for general informational purposes only and may be incomplete, inaccurate, or subject to change without notice. Programs, eligibility requirements, incentive amounts, deadlines, and other terms may change at any time, and this information may not reflect the most current requirements. Please verify current program details and eligibility with the applicable utility, government agency, or program administrator before making any decisions.