Solar Power in Illinois: 2026 Costs, Incentives & Savings

Solar in Illinois

Illinois electricity prices have jumped 22% from 2020 to 2024 — and for many homeowners, that’s reason enough to take a closer look at home solar panels.

Whether you’re just starting your research or ready to move forward, this guide covers everything Illinois homeowners need to know about solar installation — clearly, honestly, and without the sales pitch.

ILLINOIS by the Numbers

12th Most residential solar in the United States
73k Households have installed solar panels
4.5 Average daily peak sun hours
~$60k Illinois average savings over 25 years

Illinois Solar Panel Cost

Wondering what solar actually costs in Illinois? Our calculator uses real installation data from cities across the state — from Chicago and Naperville to Rockford and Springfield — to give you a localized estimate. See your monthly lease payment through Palmetto’s LightReach program (no upfront cost) or explore a cash purchase option side by side.

Lease Cash Purchase

System Size

This system size is designed to offset approximately 100% of the average electricity usage for a home in Illinois.

Recommended System

9.84 kW

Typical for your home size in IL

Your Monthly Payment
Estimated monthly cost with LightReach
$79/mo
As low as
$79/mo

Why Lease Solar?

Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.

• No upfront investment
• Palmetto handles all maintenance
• 90% Production Guarantee
• Comprehensive protection program included

Cost Breakdown

Your estimated investment

System Cost $28,095

Cost Per Watt $2.86/W

Final Cost $28,095

Savings

Your total financial benefit

Monthly Savings
Average utility bill reduction
$136

Payback Period
Break-even point
14.0 years

25-Year Savings
$59,764
Get Your Personalized Quote

Palmetto Reviews

• Lisa Budde
  Livingston, Illinois
  Once I was live, my electric bill was $12.86. Ya, and running my air most days. No batteries to worry about. We do have outages, but not many. I’m happy. Will be happiest when I get to bank some energy for winter. Should have talked my husband into it 20 years ago when I first started seeing the pricing was affordable.

• Darren Lindsey
  Herrin, 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! Electric prices are only going to continue to rise and I’ll be locked in to the cheaper same amount for 25 years! Thanks Palmetto!

• Tim Williams
  Carterville, Illinois
  The teams at Palmetto Solar are very professional and knowledgeable. I am always excited to receive my electric bill and see how much money I am saving due to going solar. Taylor and Jonathan have been of great help in answering all my questions and providing outstanding feedback. Without them I most likely would not have went with solar.

Key Takeaways

• Illinois electricity prices have risen over 20% since 2021, making solar an increasingly smart way to protect your budget from future rate hikes.
• Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance worries, and a 90% Production Guarantee — starting as low as $79/month.
• Illinois offers strong solar incentives — including the Illinois Shines SREC program, utility rebates, and a 20-year property tax exemption — that can significantly reduce your solar costs.

Illinois Electricity Prices

Electricity in Illinois costs more than it used to — and the trend isn’t slowing down.

Illinois electricity rates climbed from 13.2 cents per kWh in 2021 to 15.9 cents in 2024 — a rise of more than 20%. While still slightly below the national average, the gap is narrowing every year.

Solar panels generate electricity from sunlight, not the utility grid. That means the power your system produces isn’t subject to rate increases — helping you reduce how much electricity you buy from your utility each month.

Through Palmetto’s LightReach program, Illinois homeowners can go solar with no upfront cost and a fixed monthly payment — so rising utility rates become someone else’s problem. Palmetto owns, monitors, and maintains the system, backed by a 90% Production Guarantee.

Price of Energy: Illinois vs National Average

Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861

Illinois Area Utility Providers

Illinois homeowners are primarily served by two utilities — Ameren Illinois and ComEd. Based on 2023 data (the most recent available), their electricity rates differ notably, and both offer important context for understanding your monthly energy costs.

In 2023, Ameren Illinois customers paid around 17.0¢ per kWh — above the Illinois state average of 15.70¢ and the national average of 16.0¢. ComEd customers paid roughly 14.8¢ per kWh, falling below both benchmarks.

Even at lower rates, electricity costs add up fast. Solar can offset a significant portion of that expense. With Palmetto’s LightReach program, there’s no upfront cost — Palmetto owns, maintains, and backs the system with a 90% Production Guarantee.

Illinois Utilities Electricity Rates

Source: US Energy Information Administration, 2023, Form 861, Table 6

Illinois Solar Incentives

Illinois homeowners have access to a strong set of solar incentives in Illinois — from state programs to utility rebates — that can meaningfully reduce the cost of going solar.

Key programs include Illinois Shines (an upfront lump sum for projected energy credits), Smart Inverter Rebates from ComEd and Ameren, a 20-year property tax exemption, and net metering credits on your electric bill.

Illinois Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Illinois gets cold, snowy winters, but don’t let that fool you. With long summer days and strong sunlight, Illinois homes can generate impressive solar energy year-round with the right system.

About the Data

This map shows average daily solar energy across Illinois based on historical data.

Key Facts:

• Values shown are daily averages
• Based on 18 years of satellite data

What Can the Average Illinois Solar System Power?

Summer Production (July)

51.2 kWh/day

In July, your 10 kW system could power:

• 3.6 average Illinois homes (15 kWh/day per home)
• or Run central AC for 18 hours AND power all other appliances
• or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

18.4 kWh/day

In December, your 10 kW system could power:

• 2 average Illinois homes (15 kWh/day per home)
• or Keep your home heating system running for 15 hours
• or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

13080 kWh/year

Over a year, your 10 kW system could:

• Offset 10 tons of carbon dioxide emissions
• or Equal the environmental benefit of planting 175 trees
• or Save approximately $4,234 in electricity costs

Go Solar with LightReach — No Upfront Cost

For Illinois homeowners, Palmetto’s LightReach program is currently available as a Power Purchase Agreement (PPA) through both ComEd and Ameren — the two largest utilities in the state. With a PPA, you pay a set rate per kilowatt-hour (kWh) for the solar energy your system produces, rather than a fixed monthly amount. That means your bill reflects actual production — typically higher in sunny summer months and lower in winter.

Compared to paying cash upfront, a PPA through LightReach requires no upfront investment. You don’t need to worry about maintenance, repairs, or monitoring — Palmetto owns the system and handles all of that for you. Every LightReach plan includes detailed solar mapping and design, premium all-black solar panels, a high-efficiency inverter, permitting, installation, and comprehensive project management. And if your system doesn’t meet Palmetto’s 90% Production Guarantee, you’ll receive a credit for the difference.

Frequently Asked Questions

Does Illinois have net metering?
Yes. Illinois law requires ComEd and Ameren Illinois to offer net metering for residential solar systems up to 25 kW. If your system was interconnected before January 1, 2025, you are grandfathered into full retail-rate net metering (roughly 12–15¢/kWh) for the lifetime of your system.

Do solar panels increase your home value in Illinois?
Yes — but only if you own the system outright. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them.

How much does it cost to go solar in Illinois?
For Illinois homeowners, the most accessible way to go solar is through Palmetto’s LightReach program — a solar lease with no upfront cost and a low fixed monthly payment starting as low as $79/month.

How does leasing solar work and what’s the approximate cost in Illinois?
With Palmetto’s LightReach program, Illinois homeowners can go solar with no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee.

Do solar panels work in Illinois’ climate?
Yes, solar panels work well in Illinois. The state averages 4.5 peak sun hours per day, which is enough to power a typical home solar system effectively.

What solar incentives are available in Illinois?
Illinois offers several strong state and local solar incentives. Key programs include the Illinois Shines SREC program and ComEd and Ameren Smart Inverter Rebates.