Contemporary home with rooftop solar system in Naperville, Illinois - Solar Incentives

Solar Incentives in Naperville, IL

Complete guide to solar tax credits, rebates, and incentive programs available to Naperville homeowners in 2026.

TL;DR

Naperville homeowners can stack the 30% federal tax credit with Illinois programs to cut solar costs.

Naperville homeowners qualify for the 30% federal solar tax credit (ITC) on total system cost.
Illinois offers net metering, crediting Naperville homeowners for surplus solar sent to the grid.
Illinois adds 4 state-level incentives on top of the federal credit.
Illinois has an SREC market, so Naperville owners earn credits for every MWh produced.

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Naperville homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Naperville, IL.

What solar incentives can Naperville homeowners get?

Illinois Shines (Adjustable Block Program)

SREC

Illinois Shines provides upfront payments for solar renewable energy credits from residential solar installations.

Value

$60-$90 per REC over 15 years

Illinois Solar for All

Rebate

Provides solar access to low-income households, nonprofits, and public facilities at no cost to participants.

Value

Free solar installations for qualifying households

Sales Tax Exemption

Sales Tax

Solar energy systems qualify for a reduced state sales tax rate in Illinois.

Value

6.25% state sales tax reduced to 1%

Property Tax Special Assessment

Property Tax

Solar energy systems receive favorable property tax treatment, with the added value assessed at a fraction of market value.

Value

Favorable assessment on solar system value

How does net metering work in Naperville, IL?

Available

Illinois offers net metering for residential solar systems. ComEd and Ameren Illinois customers can receive full retail rate credits for excess generation.

What are SRECs in Naperville?

Available

Illinois has one of the strongest SREC markets through the Illinois Shines program. Solar owners receive 15-year contracts for their renewable energy credits.

Average SREC Price: $60-$90 per REC

Tax Exemptions in Naperville

Property Tax Exemption

Solar systems in Naperville are exempt from property tax assessment increases

Sales Tax Exemption

Solar equipment purchases are exempt from state sales tax

How to Claim Solar Incentives in Naperville

Install your solar system: Work with a qualified Naperville solar installer to design and install your system.
Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
Apply for state programs: Contact your Illinois energy office or local Naperville utility to apply for available incentives.
Set up net metering: Contact your utility in Naperville to set up net metering and start earning credits.
Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Homeowners enjoying lower energy bills with solar panels in Naperville, Illinois - Solar Incentives

Frequently asked

Solar Incentives FAQ - Naperville, IL

Naperville homeowners can take advantage of the 30% federal solar tax credit, plus 4 state-level incentive programs, net metering, and SRECs. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Naperville homeowners approximately $5.5k on a typical system. Combined with Illinois state programs and SREC income, total savings over 25 years can reach $35k or more.

Illinois offers net metering for residential solar systems. ComEd and Ameren Illinois customers can receive full retail rate credits for excess generation.

To claim the 30% federal ITC, Naperville homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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