What changed?

As of January 1, 2025, Illinois has officially sunset Net Metering and transitioned to “Smart Solar Billing.”

What is Net Metering?

Net Metering is a billing practice that provides customers with photovoltaic systems with credits for excess electricity they generate and feed back into the grid. So, when a renewable energy system generates more electricity than the customer consumes, the surplus energy is sent to the utility grid and a credit is provided to the customer. Conversely, when a renewable energy system is producing less power than the customer consumes, the customer draws electricity from the grid and credits accumulated from the surplus generation will offset the cost of this electricity.

At the end of the billing cycle, the utility bill reflects the net amount of electricity consumed, thus the name, Net Metering.

What is Smart Solar Billing?

Smart Solar Billing is the new billing practice that Illinois was deployed on January 1, 2025. Smart Solar Billing is the successor billing structure to the Full Retail Net Metering structure. Smart Solar Billing provides customers with lower monthly savings on their electric bills.

To offset the initial cost to install solar and/or storage, customers can apply for a one-time “Distributed Generation (DG) Rebate” (also called the “Smart Inverter Rebate”) and/or the “Storage Rebate.” The DG Rebate offers an incentive of $300 per kilowatt of generating capacity and the Storage Rebate offers an incentive of $300 per kilowatt hour of storage. More detail on these rebates is provided further down in the FAQs.

Is Net Metering completely gone?

No. Customers with solar installed prior to December 31, 2024, are considered “Legacy” customers and will continue to receive the same Net Metering benefits they always have throughout the lifetime of their solar panel system.
 
Existing ComEd customers with Full Retail Net Metering will lose legacy status if they elect to take the DG Rebate for generation, however, legacy status will not be affected if a customer elects to take a DG Rebate for storage. 

Is it still worth installing a solar panel system?

YES! Installing a solar panel system can still provide financial benefits through rebates and monthly electric bill savings. Plus, you will be reducing your carbon footprint and contributing to a healthier environment for you, your family, and your community.

Additionally, if you also install battery storage, you will increase your energy resilience, further increasing the likelihood that you will avoid power blackouts even during the most severe weather. With battery storage, you will also be able to join a future Virtual Power Plant (VPP) program, which Illinois is currently exploring. Participation in a VPP program can provide additional incentives to owners of solar plus storage for supporting the grid during critical times.

Will Smart Solar Billing still provide me with financial savings?

New solar customers who begin on Smart Solar Billing will still have access to financial rebates, such as the one-time use DG Rebate and the Storage Rebate, and can receive savings on monthly electric bills*. This will help offset the initial cost to install a solar panel system while still providing some monthly savings on your power bills.

The currently available one-time use rebates are the “Distributed Generation (DG) Rebate,” (also called the “Smart Inverter Rebate”), and the “Storage Rebate.”

The DG Rebate will provide solar customers with a one-time rebate of $300 per kilowatt of generating capacity. For example, if your system is a 10-kilowatt system, then you will receive a $3,000 rebate.

The currently available Storage Rebate functions similarly, but is specific to battery storage. As a solar customer who also installs storage, you will receive an additional one-time rebate of $300 per kilowatt hour of storage to help reduce the cost of battery storage and provide your home with more energy resilience.

You can combine these rebates with other existing federal and state financial incentives to further offset the cost to install a new solar panel system.
 
Existing ComEd customers with Full Retail Net Metering will lose legacy status if they elect to take the DG Rebate for generation, however, legacy status will not be affected if a customer elects to take a DG Rebate for storage. 

*Monthly savings on electric bills will vary and are not guaranteed, as each installation is unique, and savings will vary from customer to customer based on use and behavior.

When did Net Metering begin in Illinois?

Net Metering was implemented in Illinois in 2008 to incentivize the adoption of solar energy and build up a mature market. For years, the transition of Net Metering has been planned and negotiated, including during negotiations for the Future Energy Jobs Act (FEJA) in 2015-2016 and the Climate and Equitable Jobs Act (CEJA) of 2021.

Why did Net Metering change?

Net Metering is a common practice nationwide to incentivize the adoption of solar energy and renewable energy technologies by making renewable energy more accessible and economically viable.

Typically, a Net Metering program starts with significant incentives to encourage rapid adoption of renewable energy technologies and is often planned to reduce its benefits over time as adoption of renewable energy reaches pre-identified thresholds.

What is a smart inverter that is required for the rebate?

A smart inverter optimizes the performance and operation of a solar panel system. It communicates with the utility to adjust the power output and contribute to the grid stability, and it provides an additional layer of safety to protect the system during a power outage. The installation of smart inverters with solar panel systems is another step toward achieving a more reliable energy grid that implements a Virtual Power Plant (VPP) program.

A VPP is a decentralized network of energy resources (think solar panel installations across hundreds of households and businesses) to ensure that the power grid’s energy supply is balanced, stable, and meets demand. Participation in a VPP program can provide additional incentives to owners of solar plus storage for supporting the grid during critical times. Illinois is currently exploring VPP program options.

What if my energy is supplied by a municipality or cooperative?

The change to Net Metering does not apply to you. This change only impacts customers of investor-owned utilities in Illinois, such as ComEd, Ameren, and MidAmerican.
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What if I expand my current system after the deadline?
 
Ameren customers currently on Full Retail Net Metering may expand their system capacity by up to 100% and continue to receive the full benefit for the lifetime of the expansion. 
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For ComEd customers, system modifications that do not conflict with other eligibility requirements will NOT cause a system to lose legacy status.   Allowable modifications may include the replacement of individual system components (such as the inverter or solar panels), adding more solar panels, or adding a battery to the system.  Replacements do not need to be like-for-like to maintain legacy status.  However, if you are considering modifying your system, you should contact the DER Interconnection Team at interconnect@ComEd.com or 630-576-8158 and follow the Interconnection Application process to ensure that your modified system is fully compliant with ComEd’s requirements and will be able to retain legacy status. 
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What if my energy is supplied by a Retail Electric Supplier?
 
A customer's supply arrangement (competitively-supplied or default utility supply) does not impact their eligibility for Net Metering - both utilities and ARES are required to provide Net Metering to their eligible customers. CEJA put utilities in a more prominent role - utilities now process Net Metering applications for all customers (notwithstanding supplier), are required to forward application approval to the appropriate ARES, and are tasked with ensuring crediting occurs on customer bills. From an ARES perspective, the Net Metering transition (and whether a customer qualifies for legacy treatment or not) should not impact their obligations: they will continue to provide Net Metering customers supply credits at the relevant supply rate.
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