Illinois Solar Net Metering Changes
Illinois solar net metering changes are coming in 2025 for homeowners and businesses. Additionally, a new Smart Inverter Rebate incentive will reduce the initial costs of your system, improving the affordability of a solar PV system. The net metering policy change lowers the value of the credit, but when coupled with the Smart Inverter Rebate, Illinois homeowners and businesses still come out winners for energy savings.
What is Net Metering?
Net metering is the financial exchange between the owner of a solar PV system and their utility. The utility pays the solar homeowner for the excess energy produced by the system and exported to the grid, typically during the peak solar hours.
What are the Illinois Solar Net Metering Changes?
To first understand the net metering policy change, let’s look at your electricity bill. In Illinois, electricity consumers of investor-owned utilities (Ameren Illinois and ComEd) are charged a supply rate, a delivery rate and a fixed customer charge. After January 1, 2025, homeowners and businesses in Ameren Illinois or ComEd territory will receive the supply rate as compensation for their excess energy. Prior to 2025, full retail net metering was credited back to the utility customer, meaning a credit offset supply and delivery rate charges.
The change in net metering was included in the Climate and Equitable Jobs Act in 2021 which set the date for a new net metering schedule and eliminated the uncertainty when the net metering cap for each utility will be reached. The law added in a Smart Inverter Rebate incentive of $300 per kilowatt to lessen the impact of the net metering change. Net metering credits can now be carried forward during the life of the system, instead of an annual reset, which means more savings for you. When a home with a solar PV system is sold, the net metering credits stay with the home and the new homeowner receives the benefits.
How Does the New Policy Affect Solar Costs?
Let’s walk through an example of how the new Illinois solar net metering schedule will work in 2025. Our homeowner would like to build a 10KW system for $35,000. After 30% federal tax credit, the Illinois Solar Renewable Energy Credit (based on energy production), and the Illinois Smart Inverter rebate, the net cost of the system would be:
- Solar PV System cost = $35,000
- Federal tax credit = $10,500
- Illinois Solar Renewable Energy Credit = $11,000
- New Illinois Smart Inverter Rebate = $3,000
Total Net Cost = $10,500
*Costs are for example purposes only. Your costs and incentives may differ.
In the first year, the homeowner saved $1,260 and $54,900 for the 30-year life of the system, assuming a 3% annual increase in electricity rates. The lifetime savings generated from the system exceed the total cost of the solar PV system. When you own your own energy, the cost of electricity stays constant over the life of the solar PV system. This is called the levelized cost of energy. Compare the levelized cost of energy to your utility’s rate, in most cases your costs will be a third to half of your neighbors.
What if I Already Have Solar?
Homeowners and businesses installed prior to January 1, 2025, called legacy systems, will maintain their current net metering status. Legacy systems locked in full net metering and will be compensated from the utility for the supply and delivery rates. The legacy net metering policy stays with the homes and business for 30 years and can be transferred to the property owner.
Net Metering for Utility and Municipal Co-ops
Utility and municipal cooperatives have different net metering policies. Some cooperatives do not have net metering, others pay the supply rate with no rollover to the next month. Please call StraightUpSolar at (844) 604-1592 or reach out for questions about your individual utility.
*All costs are for example purposes only. Your costs and incentives may differ.
Lock in Long-term Savings with Solar Today!
StraightUp Solar's team of experts can get you started with a quote for your home or business.
FAQs: Illinois Net Metering Changes
No, Illinois net metering is not going away. In 2025 investor-owned Illinois utilities (like Ameren Illinois and ComEd) will be paying less for solar credits as they drop from a full retail rate net metering to supply-only rate. In addition, these utilities now offer a Smart Inverter Rebate of $300 per kilowatt of installed solar power. Want to estimate your solar savings? Start a custom quote today!
For those who already have solar, you are already locked in and will not see any changes to your net metering.
Net metering is the financial exchange between the owner of a solar PV system and their utility. Your solar PV system captures the sun’s energy and sends electricity through the home to power your appliances. Any excess electricity goes out to the grid. Your utility meter records this delivery of excess electricity and credits your account each billing cycle.
At night time, your home takes electricity from the grid, and this usage is netted against your surplus solar energy credits to reduce your electricity bill. Over time, these net metering credits can save your home thousands of dollars. Start your solar estimate today!
Here’s how net metering generally applies to your energy bill (for investor-owned Illinois utilities like Ameren Illinois and ComEd):
Illinois homeowners and businesses see three main charges:
- Customer charge
- Delivery rate charge
- Supply rate charge
The customer charge is a fee for your connection to the grid. The supply and delivery rate costs, as well as taxes and fees, are calculated based on the energy delivered to your home from the utility grid.
Starting in 2025, the Illinois net metering credit will apply only to the supply rate charges on their bill, reducing this portion’s total costs. Excess credits will be rolled over into the next month.
Over the life of the system, net metering credits and the energy offset by your solar PV system offer substantial savings to Illinois homeowners and businesses. In most cases, the lifetime energy cost savings will exceed the total cost of the solar PV system. Find out how much you can save with solar today.
Yes! While Illinois net metering rates are reducing in 2025, solar remains a solid, cost-saving investment in your home or business.
Solar immediately reduces your electricity bills, locking in your energy rates for the 30+ year lifespan of your solar array. Illinois incentives can now save you up to 70% off total solar costs by combining the federal tax credit, Illinois solar renewable energy credit (SREC) program, and the new Smart Inverter Rebate. Choosing clean solar energy is also an investment into the health of our communities! Solar is a win-win-win for your wallet, home, and our environment.
Get started on your solar project today!
GO SOLAR TODAY
Start Your Free Solar Quote!
We can provide a solar quote customized to the unique energy needs of your home or business (get your commercial quote here).
LOCAL BUSINESSES
Trust StraightUp Solar
