2026 Illinois Solar & Storage Incentives Guide: Rebates, Tax Credits & Discounts for Homeowners and Businesses
- Solar Powers Illinois
- 1 day ago
- 4 min read
Are you thinking of installing solar energy and storage for your Illinois home or business in 2026?
The good news is that installing solar in Illinois is incredibly cost-effective and can save you thousands of dollars over the lifetime of your system. Solar energy installation costs in Illinois have decreased 42% in the past decade and there are numerous discounts, rebates, and tax incentives available to make it an even more affordable investment.
As you consider your options, you should know about potential savings available through state and federal benefits.
2026 Illinois Solar and Storage Discounts, Rebates & Incentive Programs (CEJA + CRGA)
There are several Illinois solar and storage discounts, tax credits, and rebates available in 2026.
The 2021 Climate and Equitable Jobs Act (CEJA) created or expanded numerous programs that reduce upfront costs for solar power and storage in Illinois. The 2025 Clean and Reliable Grid Affordability Act (CRGA) strengthened many of these programs and even expanded available benefits, helping Illinoisans save more money on solar and storage.
You may be eligible for one or more of the following programs:
Program | Details |
Provides upfront savings to income-eligible households, multifamily buildings, nonprofits, and public facilities. Installations are often completed at no out-of-pocket cost. Nearly 3,000 residential projects have been supported since 2021. | |
Illinois Storage for All | Upcoming program modeled after Illinois Solar for All. Established by CRGA to help income-eligible households, multifamily buildings, nonprofits, and public facilities access battery storage. CRGA goes into effect on June 1, 2026, so be sure to check with your installer to see if the program is available for you yet. |
Supports eligible solar energy installations across Illinois with Renewable Energy Credit incentives to reduce upfront costs. Over 116,000 projects have benefited to date. | |
Distributed Generation/Smart Inverter Rebate | One-time upfront rebate of $300 per kilowatt-hour of capacity for residential solar. For instance, a 10kWh installation is eligible for a $3,000 rebate. |
Energy Storage Rebate | Upfront savings of $300 per kilowatt-hour of clean energy storage capacity for residential customers. Can be combined with the Distributed Generation/Smart Inverter rebate for those installing both solar and battery storage. |
Savings and eligibility may vary. There is no guarantee that your system will be eligible for any or all incentives. Please check with your installer to learn if your system is eligible for any incentives, rebates, tax credits, or discounts.
Federal Tax Credits for Illinois Solar and Storage Installations
Solar or battery systems installed on your home before Dec. 31, 2025, are eligible for the Clean Electricity Investment Tax Credit (ITC), a tax credit equal to 30% of the cost of your system.
The ITC is no longer available for residential installations completed after Dec. 31, 2025. However, if your installation was completed before the end of 2025, inquire with a tax professional to see how you can access these benefits when you file taxes this year.
If your system is eligible for the ITC, you may combine this credit with Illinois’ benefits from CEJA and CRGA to help reduce costs even further.
Businesses that invest in battery storage may still be eligible for tax benefits through the Section 48E tax credit. Learn more about recent tax code revisions at Energy Storage News and speak to your tax professional for further guidance.
Illinois Community Solar: Clean Energy Without Installing Panels
Solar energy is accessible to every Illinois household and business that wants to participate in the clean energy economy – in fact, you don’t even have to install panels on your property to use solar energy!
Illinois’ community solar program is the most accessible option for renters, buildings that cannot install solar panels due to size restrictions, HOA restrictions or structural concerns, or anyone who cannot currently afford their own installation.
Community solar installations are standalone solar arrays that allow customers to “subscribe” to a portion of the power generated by the panels. The power generated through that subscription is applied as a credit on customers’ energy bills.
Illinois households can save as much as 20% on their power bill with community solar!
How Much Do Solar Panels Save in Illinois? 2026 Estimates
Savings will vary depending on the specifics of each installation, but solar energy is a sound investment, whether you are a resident, school, nonprofit, or business owner.
The average residential solar installation in Illinois saves more than $29,000 over the course of the system’s life.
Wheaton resident Jeff Gahris has solar panels on his home and experiences significant savings year-round, even during dark and snowy months. His residential installation covers about 75% of his energy needs, and a community solar subscription ensures the rest of his energy usage is clean.
Illinois businesses also significantly reduce energy costs through solar and storage. For example, Magid Glove & Safety in Romeoville has an extensive solar and storage installation that has cut the company’s energy bills from $50,000 per month to $5,000-$10,000 per month. Magid Glove also accessed multiple incentives and rebate programs to reduce installation costs by about 50%.
And across the state from Rockford to Peoria and beyond, community solar projects are bringing accessible savings to households and businesses who cannot install solar panels of their own.
How to Find a Reputable Illinois Solar Company
Ready to learn more about how solar and storage could benefit your home or business? Selecting the right installer is one of the most important steps in your solar journey. Look for companies that are licensed, insured, and experienced with Illinois programs such as CEJA, CRGA, Illinois Shines, and Illinois Solar for All.
To explore a list of reputable Illinois solar and storage companies, visit this directory on the Illinois Solar Energy & Storage Association’s website!
This information is not legal advice. Please consult with your installer or tax professional to determine what rebates and incentives may apply to your solar system.