Chicago, IL Solar: 2026 Costs, Incentives & Savings
Solar Power in Chicago
If you live in Chicago and have watched your electric bills climb, you’re not alone. Illinois electricity prices have increased 22% from 2020 to 2024, leaving many homeowners searching for a smarter way to power their homes. Solar energy offers a practical path to greater control over those rising costs.
Illinois ranks 12th in the nation for residential solar installations, and Chicago homeowners are driving that momentum. In this guide, we’ll explain how home solar panels work and what installation here looks like.
ILLINOIS by the Numbers
12th Most residential solar in the United States
73 Households have installed solar panels
4.5 Avg peak sun hours per day
~$60k Chicago average savings over 25 years
How Much Do Solar Panels Cost in Chicago, IL?
See what solar really costs in Chicago. Our calculator uses real installation data from homes across the area—from Naperville and Oak Park to Evanston, Schaumburg, and Cicero. No guesswork, just firsthand numbers from your neighbors. Enter your details below for a clear, local estimate built for your home.
Cost Breakdown
Your estimated investment
System Cost: $28,095
Price per Watt: $2.86
Final Cost: $28,095
Savings
Your total financial benefit
Monthly Savings: Average utility bill reduction $137
Payback Period: Break-even point 13.8 years
25-Year Savings: $59,765
Get Your Personalized Quote
Palmetto Reviews
Im very happy with my solar panels. My experience from the beginning until the installation was amazing. All the representatives of Palmetto were detailed in explaining the entire process to me.
Artemese Grant, South Holland, Illinois
Palmetto has been great! Every step of the process was a lot easier than I initially thought it would be. Stacy was very knowledgeable when it came to breaking down how everything worked. The install was quick and the panels work just as advertised. Happy with everything so far.
Matt P, Roselle, Illinois
I had priced solar at 3 other companies and those companies prices were too high! Palmetto was able to get me solar with no money out of pocket and now my electric and solar bill combined are cheaper than my electric was before solar! Thanks Palmetto!
Darren Lindsey, Illinois
Key Takeaways
- Chicago electricity rates rose about 20% from 2021 to 2024, so home solar gives you more predictable energy costs and lasting control.
- Illinois and Chicago offer strong local incentives including ComEd rebates, 20-year property tax exemptions, and faster city permitting.
- You can go solar with little to no upfront cost by leasing through LightReach.
Chicago Electricity Prices
If your Chicago electric bill keeps climbing, you’re not imagining it. Illinois rates have risen steadily over recent years.
Illinois residential electricity prices rose from 13.2 cents per kWh in 2021 to 15.9 cents per kWh in 2024, according to U.S. Energy Information Administration data.
Solar lets Chicago homeowners generate their own power, reducing how much electricity they buy.
Price of Energy: Illinois vs National Average
| Year | Illinois | National Average |
|---|---|---|
| 2021 | 13.2¢ | 16.5¢ |
| 2024 | 15.9¢ | 16.0¢ |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Illinois Solar Incentives
Going solar in Chicago is more affordable thanks to several solar incentives in Illinois.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Illinois Solar for All (ILSFA) | Rebate | No-upfront-cost installations for income-eligible households. | Learn More |
| ComEd DG Smart Inverter Rebate – Solar | Rebate | $300-per-kW rebate for installing solar with a smart inverter. | Learn More |
| ComEd DG Smart Inverter Rebate – Battery Storage | Rebate | $300-per-kWh cash rebate for battery storage systems. | |
| Virtual Power Plant Program – Battery Storage Rebate | Rebate | $300/kWh for battery systems in the VPP program. | Learn More |
| Illinois Net Metering | Net Metering | Credits for solar customers based on energy fed back to the grid. | |
| Illinois Solar Property Tax Exemption | Property Tax Exemption | 20-year exemption on added home value from solar installations. | Learn More |
| City of Chicago Solar Express Permit Program | Rebate | Expedited permitting process with savings on fees. | Learn More |
| City of Chicago Green Permit Program | Rebate | Priority review status and reduced permit fees for solar installations. | Learn More |
Chicago Solar Irradiance
Solar panel production in Chicago varies by season.
Solar Production in Chicago by Month
| Month | Daily Production (kWh) |
|---|---|
| July | 51.2 |
| December | 18.4 |
Annual Production
Your 10 kW system could offset 9 tons of carbon dioxide emissions annually.
Want to know exactly how much solar can power your home?
Get a personalized solar analysis.
Leasing Solar Panels
With a LightReach Power Purchase Agreement (PPA), you pay only for the power your panels produce at a set per-kWh price.
Go solar without the investment
LightReach involves no upfront costs, maintenance needs, or long-term investments.
Frequently Asked Questions
Does Chicago, IL have net metering?
Yes, ComEd offers net metering for home solar systems.
Do solar panels increase your home value?
Yes, owned solar panels can raise your home’s value.
How much does it cost to go solar?
With LightReach, payments start around $79/month for a medium home.
What solar incentives are available?
Illinois offers several incentives including the Solar for All program and local permits.
How much electricity can a solar system produce?
A typical 10 kW system produces roughly 13,000 kWh per year.