Illinois · Tax exemption · Deep-stack program
IL Solar Property Tax Exemption
Removes a tax burden residential solar owners in Illinois would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Full assessment exemption
- stated benefit
- Residential
- eligible customers
- 14 yr
- Illinois baseline payback
- 4
- other Illinois programs
Deep-stack program · late directory
Illinois runs a 5-program DSIRE stack; this tax exemption is one layer on a 14-year modeled baseline, not the whole story.
- Stack5 programs
- In-state #3/4
- Type #13/45
- Baseline14 yr
In-state directory place #3 of 4 (late alphabet). National tax exemption directory #13 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
Program description
Illinois law provides full property tax exemption for solar energy systems.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Full assessment exemption
- State electricity rate
- 16.5¢/kWh
- Illinois solar score
- 28/100
Solar's trajectory in Illinois
The market this incentive operates in: total installed solar capacity in Illinois reported to the EIA.
Illinois's solar incentive stack
How this tax exemption sits among Illinois's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Rebate
Rebate
1 programs
- SREC
SREC
1 programs
What this shows Illinois tracks 4 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this tax exemption layers inside Illinois's deep stack
The IL Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Illinois's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Full assessment exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Illinois averages 4.3 kWh/m²/day of usable sunlight and residential rates of 16.5¢/kWh, producing an estimated 7,534 kWh/year and $1,243 of annual utility offset on a typical 6 kW system costing $17,400. That baseline already implies a 14-year simple payback and a 25-year modeled net of roughly $13,675 before this incentive - every dollar this tax exemption delivers compresses that payback further.
Illinois bundles a deep incentive stack, so this program rarely stands alone. Illinois has 5 solar incentive programs indexed in DSIRE, including adjacent options like IL Net Metering, ComEd Smart Inverter Rebate, Illinois Shines (Adjustable Block Program). The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Other Illinois incentives
Frequently asked questions
Where does the IL Solar Property Tax Exemption sit in Illinois's deep program stack?
How does this tax exemption work beside Illinois's other programs?
Who qualifies, and what does a late in-state directory place mean?
How does this incentive affect solar ROI in Illinois?
Which other Illinois programs stack with this one?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Illinois solar data · ROI calculator · All incentives.