How Much Does It Cost to Install Solar Panels in Illinoise? 2024 Homeowners Guide

Illinois, a Midwestern state characterized by its diverse landscape of farmland, forests, rolling hills, and wetlands, is emerging as a key player in the solar energy sector. With a variety of solar incentives, Illinois is an attractive destination for energy-conscious homeowners.

The state boasts a robust Renewable Portfolio Standard (RPS) and net metering policy, along with property tax breaks for solar adopters, making it a prime location for solar power installation.

in this article, I will go over the cost of installing solar panels in the state of Illinois, various factors that could affect the price of your solar system, and how you could go solar with no money upfront or out of pocket and still save money from the moment your solar panels are turned on.

The Cost to Install Solar Panels in Illinois

Installation Cost When Paying Cash

When paying cash for your solar system, the cost of installing solar panels in Illinois typically ranges between $13,600 to $18,400. The price per watt varies from $2.72 to $3.68. When comparing these costs nationally, Illinois proves to be competitively priced.

The solar company you work with will usually require the entire amount to be paid after permits are received, but before the actual installation takes place. This is not the case with a program like the power purchase agreement where the solar provider handles all the upfront costs, you can read more about that program here.

Here is an example of the prices you could be paying per solar panel when paying cash to install your solar panels.

• 10 Solar Panels = $ 13,600
• 12 Solar Panels = 16,500
• 14 Solar Panels = $18,200
• 16 Solar Panels = $19,750

Smaller companies may be able to secure ways for you to pay in installments.

Installation Cost When Financing

If you choose to go the route of financing your solar system, you should also face no upfront or out-of-pocket cost if you choose to go with a longer solar provider such as Sunrun. Small or medium-sized many small to medium-sized companies may charge for the site survey or permitting though.

When you choose to use financing to install your solar system, you can expect to start making your solar payments 30-60 days after the solar panels have been installed.

Although every solar system has a price, that does not necessarily mean that there will be upfront or out-of-pocket costs that you will need to pay. Whether you pay cash, finance, or lease your solar system, most companies will not charge you anything upfront or out of pocket.

Installation Cost for Power Purchase Agreements

There is also no upfront cost for a power purchase agreement. That includes the consultation, site survey, permitting, and everything in between. This is what makes the power purchase agreement an increasingly popular choice for homeowners who don't want to pay anything upfront, pay cash, or even take out a loan, 

This gives the you ability to save money from the moment your solar system is turned on because you can buy your electricity at a significantly lower rate. You can get a free quote here to see if you're home is a good fit for a power purchase agreement.

Solar Payback Period in Illinois

Payback Period When Financing or Paying Cash

An essential factor for potential solar buyers is the solar payback period. In Illinois, the average period to recoup the initial solar investment through electricity savings is approximately 8.9 years.

The state and federal incentives really help to offset the cost of solar for Illinois residents. 

However, one of the major drawbacks of paying cash or financing your solar system is that the manufacturer warranties are passed on directly to you as the owner of the system and you would be responsible for any costs related to the repairs or damage to the equipment after a certain period.

Payback Period for a Power Purchase Agreement

For those interested in solar panel systems, several financial options are available. Cash purchases are a popular method, often yielding the most long-term value. Alternatively, solar loans and solar lease/Power Purchase Agreements (PPAs) offer feasible financing routes.

The solar company that sponsors the programs will also be responsible for any repairs or maintenance to the system for the lifespan of the agreement. the only drawback to this program is that the qualification process can be a bit strict and not everyone passes the home audit. You can fill out the form on this page to see if you qualify.

How Illinois Solar Incentives Can Affect Your Cost

Solar incentives in Illinois significantly reduce the cost of going solar. One of the major incentives is the federal Residential Clean Energy Credit, allowing a 30% deduction of the total system cost from federal taxes until the end of 2032. 

Afterward, the credit was reduced before phasing out in 2035. Additionally, Illinois offers other incentives like ComEd’s commercial solar rebates, net metering policies, property tax breaks, and solar renewable energy credits (SRECs).

For a more detailed understanding of Illinois' solar incentives and rebates, explore here.

Conclusion Illinois is setting a benchmark in the solar industry with its favorable policies, cost-effective options, and a variety of financial incentives. Whether you're in Chicago or Springfield, the opportunities for solar energy in Illinois are ripe, making it an ideal time to consider transitioning to solar power.