2024 Solar Incentives Guide for Prospect Heights, IL - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Prospect Heights?

Source: https://www.dsireusa.org/

Solar incentives are intended to make renewable energy usage more affordable through financial incentives to help people install solar panels on their homes. Different kinds of incentives, including cash back, discounts or monthly utility bill credits, may be available to you. Certain incentives may be provided via the state of Illinois, by your utility company or by county or municipality, while others are federal. Some solar incentives you might qualify for are:

• Rebates: Rebates, or partial refunds after a purchase, are normally applied before any solar tax credits are calculated. These rebates can be provided by your local utility company, by your state or by your county.
• Net Metering: Net metering factors in once your solar panels are up and running. If you have a net metering agreement with your Prospect Heights utility company, the company will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some places, this is a dollar-for-dollar credit, while in other places you might receive a refund equivalent to a percentage of the value.
• Solar Renewable Energy Certificate (SREC): SRECs and similar other performance-based incentives might be available to you if your solar system produces over a specified (generally small) amount of electricity. These types of incentives are usually handled by the state government. You can sell the SRECs you receive to your utility company or other buyers, and the money you make is generally considered part of your taxable income.
• Tax Exemptions: Your solar panel system may qualify for both sales tax and property tax exemptions. Sales tax exemptions are effective at the time of purchase. Property tax exemptions allow you to ignore the value that solar panels add when you are calculating property taxes on your house.
• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the government.

Best Solar Financing

Blue Raven Solar

★★★★★

4.5

• Industry-leading in-house financing
• Competitive pricing
• Excellent reputation
• Doesn't offer solar batteries

Get Estimate

Best for Leasing

Sunrun

★★★★★

4.0

• Expansive service area
• Many financing options
• Some reported issues with customer service
• Some reported issues with door-to-door sales

Get Estimate

Best Technology

Tesla Energy

★★★★★

3.2

• Price-match guarantee
• Sleek, efficient, and durable solar panels
• Best solar battery on the market
• Some reported issues with customer service
• Customer service varies by local dealer

Get Estimate

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have some knowledge of. The Federal Solar Investment Tax Credit, or ITC, is likely the most well-known federal solar incentive. The ITC provides you with a tax credit for a set percentage of the cost of your solar system.

The ITC applies to the value of solar panels installed on your primary or secondary residence in the United States. The solar system must have been installed after January 1, 2006, on a property owned by you for you to be eligible for the credit. The ITC initially covered 30% of all system costs (panels, labor, equipment and accessories), although the covered amount has fluctuated over the years between 26-30%. The installation date of your solar system will determine what percentage you are eligible for. There is no cap on the claim amount.

To find out exactly how much money the ITC could save you, speak with your local Prospect Heights solar panel installation expert.

The Inflation Reduction Act, passed in August 2022, expanded and extended the ITC (as well as retitling it the Clean Energy Credit). The new Clean Energy Credit extends until 2035. You are now eligible for a 30% credit for solar systems installed between January 1, 2022, and December 31, 2032. This new credit will then decrease annually until it expires. Starting in 2023, the program expansion will also make claiming credit for energy storage systems easier than ever before.

Click here to learn more about the new Inflation Reduction Act. The easiest way to understand how the new Clean Energy Credit applies to you is to talk with your local Prospect Heights solar panel installers.

State & Local Solar Incentives

There are often also state solar incentives in addition to those provided by the federal government. Rebates, tax credits and more might be available at a more local level. Certain incentives are ongoing, while others might only be available for a limited time. Solar incentives might be provided by your county or municipality, or by the Illinois government.

Next Steps for Installing Solar in Prospect Heights

The nationwide use of solar energy has increased enormously in the past 15 years, in part thanks to the proliferation of solar incentives. You might receive these incentives from the federal government, the Illinois government or your local utility company. It is a good idea to talk to your local Prospect Heights solar installation company to learn more about these incentives and to ensure that you're getting the largest number possible for your solar system.