Commercial Solar Incentives in Illinois

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Illinois Adjustable Block Program

Illinois Adjustable Block Program (Illinois Shines) offers financial compensation to commercial businesses for each solar renewable energy certificate (SRECs) for every 1,000 kilowatt-hours (kWh) their solar system produces over 15 years.

ComEd Commercial Rebate

Illinois' largest utility company ComEd, offers rebates to commercial businesses to receive up to $500,000 at $250 per kW of installed solar power. An additional rebate of $250 per kW is available for installation of energy storage systems. Other IL utility companies also offer rebates. Connect with an installer to learn if your business can qualify for a utility rebate. 

Illinois Net Metering

Illinois' net metering policy allows commercial businesses to receive credits for excess energy that their solar system produces. Credits can be applied to future utility bills to alleviate energy costs. 

Business owners can leverage various federal solar incentives in combination with Illinois' existing programs. Together, these incentives can substantially lower the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Illinois may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Illinois business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Illinois Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Illinois installer to see which incentives can contribute to your solar system. 

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