Illinois Solar
Understanding Solar in Illinois
Solar energy in Illinois is on the rise, and the Land of Lincoln is ripe for a solar revolution. With electricity rates on the uptick, Illinoisans are turning their sights to the sun to power their homes and businesses sustainably.
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The plains and rolling hills of Illinois are more than just picturesque—they're perfect for capturing abundant solar energy. Homeowners across the state are harnessing this power, placing solar panels on rooftops or installing ground-mounted systems. Illinois's solar capacity is growing rapidly, with large-scale installations sprawling across acres, underscoring the state's commitment to renewable energy.
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Switching to solar in Illinois is a significant and positive step forward. It's about understanding the basics of solar energy, exploring your solar options, and knowing what questions to ask the experts. With the right information, Illinois residents can confidently navigate the solar landscape, making informed choices that benefit both their wallets and the environment.
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How Solar Works
In Illinois, solar panels are a smart choice for clean energy. Here's the simple science behind it: solar panels capture sunlight and convert it into electricity. This process involves photovoltaic cells that take in the sun's energy and turn it into electrical power for your use.
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It's straightforward - the more sunlight they catch, the more energy they produce. Even on cloudy days, these panels are hard at work. And if they make more electricity than you need, you could send it back to the grid or store it, depending on your system setup.
Your Home Solar Options
When it comes to solar power, your home is one of the best places for you to start. Solar panels in Illinois are a good way to generate renewable energy and save money over time!
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There are three main types of solar systems: stand-alone photovoltaic (PV) systems using string inverters or microinverters, grid-tied solar systems with battery backup inverters or without battery backup inverters, and off-grid photovoltaic (PV) systems.
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To help you make the best choice, it's important to understand all the different solar panel options available.
Solar energy is the newest way to lower your electricity bill. Here are three of the most popular options, explained in more detail below:
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Purchase a solar system (with cash or a loan) and own both the system and all the power it produces
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Lease a system, usually for a monthly rate, and own all the power it produces
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Enter a “power purchase agreement” (PPA) to buy (in price per kWh) the electricity the system produces
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Purchase
Going solar in Illinois by purchasing your system outright places you at the helm of your energy future. As the system owner, you'll enjoy the full spectrum of benefits from the clean electricity your solar panels produce. Maintenance is surprisingly simple; these systems are built to withstand the elements and require minimal upkeep. Plus, many providers offer maintenance packages for purchased systems.
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The upfront cost is an investment that pays dividends in the long term. Not only could you see substantial savings on your energy bills, but you're also investing in the health of the planet by slashing emissions. Don't forget the attractive incentives: Illinois residents often qualify for tax credits and other financial incentives that make solar more affordable.
Lease
Leasing a solar system is a popular option for Illinois residents who prefer to avoid upfront costs while still reaping the benefits of solar energy. When you lease, the solar company retains ownership of the system and takes care of all maintenance needs. In return, you pay a predetermined monthly rate for the duration of the lease.
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Many solar providers offer attractive leasing terms, including "no money down" options, allowing you to start saving on your energy bills from day one without initial investment. While the system isn’t free, the cost savings on your electricity can offset the lease payments.
Power Purchase Agreement (PPA)
Opt for a Power Purchase Agreement (PPA) in Illinois and pay only for the electricity your solar panels produce, not the equipment itself. This agreement eliminates upfront installation costs, and because you're buying energy at a potentially lower rate than your utility, you could start saving on your electric bills immediately. The solar company owns and maintains the system, so you're free from maintenance concerns.
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PPAs are an excellent low-commitment entry into solar energy, ideal if you're looking to avoid initial investment. Before entering a PPA, check the terms for flexibility, like buy-back options or transferability, which could be important if you plan to sell your home.
Illinois Tax Credit
Illinois residents who switch to solar can benefit from tax incentives that make going green more affordable. The state offers a Solar Renewable Energy Credit (SREC) program, which can earn you credits for the energy your system produces. Additionally, there's the federal solar investment tax credit (ITC), which allows you to deduct a significant percentage of your solar system costs from your federal taxes, further reducing the overall expense of going solar.
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These incentives not only lower the upfront cost but also enhance the return on investment over the lifespan of your solar system. It's essential to consult with a solar expert or tax professional to fully understand these benefits and how they apply to your specific situation.
Details of Illinois Solar Incentives
Now is an opportune moment for Illinois residents to consider solar power due to incentives made available by the Future Energy Jobs Act (FEJA) and the decreasing costs of solar equipment. Partnering with an Illinois solar provider can offer you greater control over electricity expenses, safeguard your home during power outages, and significantly reduce your carbon footprint.
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Incentives, Tax Credits, and Rebates in Illinois:
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Inflation Reduction Act (IRA): Homeowners installing solar panels could be eligible for a tax credit of up to 30% of the system costs.
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Solar Renewable Energy Credits (SRECs): Earn compensation for each kilowatt-hour (kWh) your solar system produces, with values fluctuating based on market conditions.
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Illinois Solar for All (ILSFA) Programs: Support for low-income homeowners, providing access to solar energy with no upfront costs.
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Explore Illinois’s Solar Potential:
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Adjustable Block Program (ABP): You may earn SRECs for the electricity your system generates, with the ABP offering fixed pricing for SRECs through long-term contracts.
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ILSFA Low-Income Community Solar Programs: These cater to low-income households, enabling them to either purchase or lease solar panels, or participate in community solar projects, with immediate savings and no upfront investment.
To tap into ILSFA programs, your household income must be at or below 80% of the Area Median Income (AMI). Check the ILSFA website for detailed income qualifications and to find out if you qualify for the solar initiatives available in Illinois.
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Cash Purchase VS Loan: What’s Best for Illinois Homeowners?
Deciding between a cash purchase and a loan for solar panels in Illinois hinges on individual financial situations and long-term energy goals.
Here’s a quick rundown to help Illinois homeowners make an informed decision:
Cash Purchase Advantages:
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Full Ownership: You own the system outright from day one, with no ongoing monthly payments.
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Maximum Savings: Without loan interest, the total cost over time is lower, leading to greater savings on utility bills.
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Increased Home Value: Solar systems can increase property value, and as the owner, you’d reap the full benefit if you decide to sell your home.
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Tax Incentives: You can directly benefit from the federal tax credit and any state or local incentives immediately after the system is installed.
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Loan Purchase Advantages:
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Low Upfront Cost: Loans often require little to no down payment, making solar accessible without significant upfront investment.
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Flexible Payment Options: Loan terms can vary, providing flexibility in how much you pay monthly and for how long.
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Retain Incentives: You still qualify for tax credits and incentives, which can be used to pay down the loan faster.
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Potential Positive Cash Flow: If your energy savings exceed the loan payment, you can experience a net positive cash flow from the start.
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For Illinois homeowners, both options can be financially advantageous. A cash purchase typically offers the best return on investment over time, while a loan can make solar power accessible immediately with minimal initial expense. Consider your current financial liquidity, tax situation, and investment preferences before deciding. Consulting with a financial advisor or a solar consultant could provide clarity on which option aligns best with your personal and financial circumstances.
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Get your system size and battery details
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Find your solar cost and energy usage
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Learn about the incentives in your state
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Switch to solar power and start saving money right away
There are many benefits to switching over to solar energy including lower monthly bills, improved property value, and cleaner air. The solar panels in Illinois can help you live a more sustainable lifestyle while also lowering your carbon footprint by displacing emissions that would have been created from traditional power plants. Solar is an investment with the potential for significant returns on investment, so solar panels are quickly becoming a more affordable way to generate power!
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You may want solar installation costs depending upon your area--read more about that below--and you'll want to ask solar experts about solar panel efficiency so that you know how much power each solar cell produces and what the solar cells are made of.
For those looking to reduce their environmental footprint, solar installation is becoming more affordable with the help of government incentives and rebates. There are around 20 different types of tax credits for investments in renewable energy or any infrastructure project that directly reduces greenhouse gas emissions (such as wind farms). These tax benefits can be used by both individuals and corporations alike while also helping defer some upfront costs associated with installing a system such as labor expenses or expensive panels themselves.
For example, an individual might have difficulty paying $25K upfront on equipment worth $32K but they may qualify for a 30% federal investment credit which would lower the amount down to just under $21k! The Solar Energy Industry Association estimates that about half of all new homes will use this solar energy by 2022, so solar installation is becoming an increasingly popular option to go green!
