Tax Credits and Incentives for Solar Panels

Residential Example:
Solar systems qualify for a 30% Federal Tax Credit - up to $2,000. A tax credit is a dollar-for-dollar reduction in the tax payment required by a person and typically has a greater value than a tax write-off. Learn more on the IRS website.

This is an example of a Residential Hot Water System:

Cost of Installation and Solar Unit- $10,000
State of Illinois Rebate: -$ 3,000
Federal Solar Tax Credit: -$ 2,000
$10,000 Solar Hot Water System now only cost 50% of orginal cost, $ 5,000, with the current government incentives.

Commercial Systems are another story:
Solar systems qualify for a 30% tax credit with no limit. A tax credit is a dollar-for-dollar reduction in the tax payment required by a person and typically has a greater value than a tax write-off. In addition, an accelerated 5-year tax write-off is available for businesses that have solar energy systems. Business can also take advantage of the 30% rebate from the state of Illinois. To learn more about the Federal Incentives, click here.

Some of the Additional Incentives:

• Exemptions from property tax for solar systems

• Additional grants available through the Illinois Clean Energy Community Foundation for municipalities and not-for-profit groups.

With this financial help from the Illinois Department of Commerce and Economic Opportunity, the Federal Government and other funding sources, solar systems are more affordable than ever!