Illinois Shines Solar Incentive: 25-40% Savings

Illinois is home to one of the nation’s most generous solar incentives, known as Illinois Shines (formerly the Adjustable Block Program). This program is a game-changer for homeowners interested in solar energy. Here’s how it works:

Through Illinois Shines, homeowners earn Solar Renewable Energy Credits (SRECs) for every megawatt-hour of electricity their solar system produces during its first 15 years of operation. These credits are not just a badge of honor; they have a tangible value. Illinois utilities are required to purchase these credits to meet state requirements.

What’s truly remarkable is that the Illinois Shines incentive can cover a significant portion of your solar system’s cost, ranging from 25% to an impressive 40%. For the average homeowner, this translates into potential savings of around $10,000. The best part? Certasun, a trusted name in the solar industry, takes care of the application process on your behalf, guaranteeing the agreed-upon amount as part of your agreement.

Federal Tax Credit: 30% Savings

In addition to Illinois Shines, homeowners investing in solar systems can also take advantage of the Federal Residential Clean Energy Credit. This federal tax credit is a win-win for homeowners looking to reduce their carbon footprint and their energy bills.

The Federal Residential Clean Energy Credit offers a substantial 30% offset on the total expense of your solar energy system, which includes any necessary modifications required for installation. What’s more, if you’re considering adding battery energy storage systems to your solar setup, they too are eligible for this 30% federal tax credit. And the best part? There are no limitations on the amount you can claim, and no income qualifications to worry about.

Ready to benefit from these Illinois incentives? Contact us today

Tax Credit vs. Tax Deduction: Understanding the Difference

Before we go any further, let’s clear up an essential distinction. A tax credit directly reduces the amount of tax you owe, providing substantial financial benefits. In contrast, tax deductions reduce the amount of your taxable income. To put it into perspective, a $20,000 tax credit will save you $14,400 more than an equivalent tax deduction. That’s money back in your pocket!

How to Claim the Solar Tax Credit

Now that you’re excited about these incentives, here’s how you can claim the federal tax credits for residential solar and battery storage. It’s a straightforward process. All you need to do is file your taxes using IRS Form 5695: Residential Energy Credits. To ensure accurate eligibility, remember to claim the credit in the tax year during which your solar system was installed, not the year you signed the purchase agreement or made the payment.

A Bright Future with Solar Energy

Illinois is undoubtedly a solar paradise for homeowners. With its generous incentives and tax credits, the state not only reduces your overall solar investment but also contributes to significant savings and a cleaner, more sustainable future. It’s an opportunity to harness the power of the sun while positively impacting your energy bills and the environment. So, if you’ve been contemplating making the switch to solar energy, Illinois welcomes you to a brighter and more sustainable future.

Ready to benefit from these Illinois incentives? Contact us today