Discover the top six financial benefits that increase the returns from your solar energy system in Illinois, making your transition to renewable energy easier and more affordable. Click here to visit our case studies page to see how these savings have worked on real projects.
1. Energy Savings: Invest in Your Future
One of the most compelling reasons to invest in solar energy is the substantial energy savings you'll achieve over time. By generating your own electricity, you can significantly reduce your monthly utility bills. Over the lifespan of your solar panels, these savings can add up to thousands of dollars, effectively offsetting the initial installation costs.
Additionally, as energy prices continue to rise, locking in your energy costs with solar ensures that you are protected from future rate hikes, making it a smart long-term financial decision.
2. Depreciation Benefits: Maximizing Your Investment
The OBBB restored the 100% bonus depreciation, a powerful tool that allows businesses to deduct the entire cost of qualifying solar equipment in the first year. This can result in immediate and substantial tax savings, especially for profitable businesses with high tax liabilities. When combined with the 30% Investment Tax Credit (ITC), bonus depreciation offers an opportunity for major upfront relief, making solar even more financially attractive.
3. Harnessing the Power of Tax Credits
Federal tax credits play a major role in making solar energy systems more affordable for farms and businesses. One of the most impactful incentives is the Federal Investment Tax Credit (ITC), which allows businesses to deduct 30%-50% of the total cost of a solar installation from their federal tax liability. This credit directly reduces the amount of taxes owed, offering substantial savings.
4. Unlocking Grants for Solar Projects
Various grants are available to support the adoption of solar energy in Illinois, helping reduce the financial barriers for farms and businesses looking to make the switch. These grants may come from federal programs like the USDA Rural Energy for America Program (REAP), which offers funding specifically for rural businesses and agricultural producers, or from state and local government initiatives aimed at encouraging renewable energy development. Additionally, private foundations and energy-focused organizations may offer grant opportunities targeted at specific industries, regions, or project types.
These grants are typically designed to cover a portion of the upfront costs, such as equipment, labor, or permitting, making solar more accessible to a wider range of operations. By providing non-repayable funding, they can significantly improve the return on investment and shorten the payback period. For many Illinois farms and businesses, grants serve as a critical tool in making solar energy both achievable and cost-effective.
5. Illinois Shines: A State Program to Light Up Your Savings
Illinois Shines is a state-administered program designed to support the growth of solar energy by offering financial incentives that make solar installations more affordable and financially rewarding for businesses and farms. The core of the program revolves around the creation and sale of Solar Renewable Energy Credits (SRECs). For every 1,000 kilowatt-hours (kWh) of electricity produced by a solar system, one SREC is generated. These SRECs are then sold to utilities that are required to purchase them in order to meet state-mandated renewable energy goals.
For system owners, this creates a valuable revenue stream that goes beyond energy bill savings. This can help offset a substantial portion of the installation cost. When combined with federal tax credits, depreciation benefits, and potential grants, Illinois Shines dramatically improves the financial viability of going solar. It not only lowers the barrier to entry but also ensures ongoing economic benefits, making solar a smart, long-term investment for Illinois businesses and property owners.
6. Storage Rebates: Enhancing Efficiency and Savings
Illinois’ storage and smart inverter rebates help significantly offset the cost of installing a solar energy system by putting money directly back into your pocket. For eligible systems, small commercial customers can receive $300 per kilowatt (kW) of solar installed and $300 per kilowatt-hour (kWh) of battery storage—while larger businesses can receive $250 per kW and per kWh. That rebate money comes back to you after installation, reducing your upfront investment and helping make solar more financially accessible.
By participating in these rebate programs through utility providers like ComEd and Ameren, customers are able to lower the net cost of going solar—especially when adding battery storage and smart inverters, which enhances energy independence and resilience. When stacked with federal incentives, the Illinois rebates can make a major difference in the return on investment for solar.
Important Disclaimer
Harvest Solar is not a tax advisory firm or legal counsel. This information is provided for general educational purposes only. The interpretation of tax law can be complex and may evolve rapidly as new regulations, executive orders, and guidance are developed. Given the recent executive order signed July 7, 2025, and ongoing regulatory changes, the landscape for solar tax credits is particularly fluid. We strongly recommend consulting with qualified tax professionals and legal counsel who specialize in renewable energy tax law to understand how these changes specifically impact your business tax situation and to ensure you receive accurate, up-to-date advice for your circumstances.
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