Illinois Energy Incentives
Federal and state programs for solar, battery, EV, and efficiency upgrades.
Key Programs
Discount structures vary; watch for escalators and term length.
Some interconnection rules require specific inverter capabilities.
Federal Incentives
Deduct 30% of the total cost of your solar energy system from your federal income taxes. Includes panels, inverters, racking, wiring, installation labor, and permitting.
Standalone battery storage systems of 3 kWh or larger qualify for the 30% federal tax credit, even without solar. Added by the Inflation Reduction Act.
Tax credit for purchasing a new qualifying electric vehicle. Amount depends on battery sourcing and manufacturing requirements.
30% credit on qualified heat pump costs, up to $2,000 per year. Can be claimed annually (not a one-time credit).
30% credit on insulation, windows, doors, and energy audits. Annual limit of $1,200 (separate from the $2,000 heat pump limit).
State Programs
Illinois Shines provides upfront incentive payments based on 15 years of projected REC production. The payment lowers the effective cost of solar installation.