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Illinois Shines: Unlocking Solar Savings for Homeowners

By SRECs: What are Solar Renewable Energy Credits?, Solar Rebates & Incentives No Comments

With utility rates rising in Illinois, more and more homeowners are looking to solar to lower their energy costs. Illinois Shines is an incentive program that can lower the cost of installing solar panels by tens of thousands of dollars and increase the cost savings of powering your home with solar.

In this article, we’ll explore how the Illinois Shines program works, how much this incentive is worth, and some keys to maximizing your incentive amount.

Jump to a section:

Let’s begin with a look at how Illinois Shines works for residential solar installations.

How Does the Illinois Shines Program Work?

Illinois Shines is a state-run solar incentive program designed to make solar energy more affordable for homeowners. It’s part of Illinois’s commitment to renewable energy under the Future Energy Jobs Act (FEJA) and is managed by the Illinois Power Agency.

The program is available to commercial, community, and residential solar installations, but our focus is on how it works for homeowners.

  1. Work with an Approved Vendor: To participate in the program, you must design and install your solar system with an approved vendor. These companies are vetted by the state to ensure compliance with program requirements.
  2. Apply & Estimate Your Solar Production: Before installing your system, your Approved Vendor will apply for Illinois Shines and estimate how much electricity your solar panels will produce. Your installer must disclose the expected production during the application process. Every 1,000 kilowatt-hours of solar electricity is worth one Renewable Energy Credit (REC), which can be sold back to your utility.
  3. Upfront Payments: Your solar installer collects payment based on the number of RECs your system is expected to produce in its first 15 years. This incentive is passed to you through a reduced purchase price or other methods disclosed in your contract.

It’s worth noting that RECs are funded by utility customers through a line item on their electricity bills. So, you can either pay for RECs through your monthly electric bill or get paid by RECs through the Illinois Shines program.

 

 

How Much is the Illinois Shines Incentive Worth in 2025?

The value of the Illinois Shines incentive depends on several factors, including the size of your solar system, current market rates for SRECs, and the contract between you and your installer. However, in 2025, the incentive for an average-sized solar system (7 kW) in Illinois is between $9,900 and $11,300.

Pro tip: You can also claim a federal tax credit worth 30% of your solar and/or battery costs to further lower your solar costs!

Here are a few things that could impact your incentive amount.

Solar System Size

The Illinois Shines incentive is based, in part, on how much clean electricity your solar panels are expected to produce over 15 years. More panels means more production and more RECs. For instance, a 7 kW solar system is expected to produce just over 9,000 kWh per year in Illinois. That’s 9 RECs per year, and 135 RECs over 15 years.

As we’ll see below, your system determines how many RECs you’ll earn and how much those RECs are worth.

Illinois RECs Values

Similar to shares on a stock market, RECs fluctuate in value based on market conditions. In 2025, Illinois Shines RECs for “distributed generation” (aka rooftop solar) are worth up to $83.87. That’s over $13,00 for a typical 7 kW rooftop solar system.

The value of each REC depends on your system size and which group your utility provider is in.

  • Group A: Ameren Illinois Company, MidAmerican Energy Company, Mt. Carmel Public Utility, and rural co-ops and municipal utilities in the MISO service area
  • Group B: Commonwealth Edison Company (ComEd), and rural co-ops and municipal utilities located in the PJM service area

The table below shows the Illinois Shines REC values for residential solar installations in 2025:

System Size (AC) Group A Group B
0-10 kW $73.71 $83.87
>10- 25 kW $63.53 $77.53
>25-100 kW $55.89 $70.23

It’s important to note the break in REC pricing for solar systems larger than 10 kW. A 10 kW solar system in Group A can be expected to generate $14,373 in REC incentives, but if your system is slightly over 10 kW then the incentive drops to $12,388 based on the lower REC value!

The Contract with Your Installer

The Illinois Shines program does not make direct payments to the homeowner. Your solar installer receives the incentive payment for selling the RECs your system is expected to produce and then passes some or all of that value to you. This often comes as a reduced purchase price or an incentive payment several months after your project is installed.

The method and value of your Illinois Shines incentive should be clearly stated in the contract between you and your approved installer. Having an experienced set of eyes, such as a Solar.com Energy Advisor, can make a substantial difference in your incentive amount.

 

Keys to Maximizing Your Illinois Shines Incentive

The Illinois Shines program offers one of the highest-value solar incentives in the U.S. and there are a handful of ways to ensure you are getting the maximum incentive.

Sooner is Better: Like most solar incentives, REC values tend to decrease over time and will not be around forever. They are currently quite generous through the Illinois Shines program, but will likely decline over time as more and more homeowners go solar and claim this incentive.

Get Multiple Quotes: Compare quotes from multiple approved vendors and ask them how much of the Illinois Shines incentive they will pass on to you, and how they will pass it on. Getting multiple quotes allows you to select or negotiate for the highest incentive value.

Read Your Contract Before Signing: The value of your Illinois Shines incentive and how it will be paid should be clearly stated in the contract between you and your installer. Read your contract carefully before signing to ensure you are getting the incentive amount you agreed upon.

Work with an Energy Advisor: On Solar.com, your Energy Advisor is there to offer unbiased guidance and advocate for your best interests. We’ll use our 10+ years of experience in the solar industry to ensure you get the maximum Illinois Shines incentive from your installer.

Ready to see how much you can lower your energy costs with solar? Get custom solar proposals from Illinois Shines-approved vendors on solar.com.

 

 

Will Electricity Prices Go Down in 2026?

By How Do Solar Panels Lower Your Electric Bill?, The Pros and Cons of Rooftop Solar in 2026 No Comments

After several years of fast-rising electricity rates, many homeowners are feeling the pain of high electricity bills and wondering if utility rates will go down in 2026.

We’ll put it this way: Don’t hold your breath for electricity prices to drop.

While we don’t have a crystal ball, in this article we’ll look at trends, forecasts, and economic forces to get a sense of what to expect from electricity prices in 2026 and beyond.

Jump ahead:

 

Will utility electricity prices go down in 2026?

No, utility electricity prices are expected to continue rising in 2026. The U.S. power grid faces a growing imbalance in supply and demand, which leads to higher prices.

What’s increasing electricity demand?

  • AI data centers
  • Domestic manufacturing
  • Electric vehicles
  • Air conditioning for increasingly intense heat events

What’s holding back electricity supply?

  • Slow permitting & interconnection processes for new power plants & transmission
  • The “One Big Beautiful Bill” removing incentives for wind & solar
  • Aging grid infrastructure in constant need of upgrades & repairs
  • Long lead times for gas and nuclear power plants

With electricity demand expected to grow by 50% in the next 25 years, America needs all the new power plants and transmission lines it can get. However, Trump’s One Big Beautiful Bill removes incentives for the fastest and most cost-effective power sources: wind and solar.

Are electricity prices going up in 2026?

Yes, electricity prices are going up in several areas of the United States in 2026, according to utility rate filings. Some of the more notable rate increases proposed and planned for 2026 are listed below.

State Utility Price increase Timing
Colorado Xcel Energy 9% rate increase August 2026
Indiana CenterPoint Energy 7.3% increase to average bill Early 2026
New York Con Edison 2.8% rate increase January 2026
New York NYSEG 26.3% increase to average bill* April 2026
New York Rochester Gas & Electric 26% increase to average bill* April 2026
South Carolina Dominion Energy 12.7% increase to average bill* July 2026
California San Diego Gas & Electric $4 increase to average bill January 2026
Wisconsin Xcel Energy $13 increase to average bill January 2026
Delaware Delmarva Power and Light 16-23% increase to base rates* July 2026
Washington State Seattle City Light 5.4% rate increase January 2026
Washington State Puget Sound Energy 12% rate increase January 2026

*Proposed electricity service price increase that may change during approval process.

 

What causes electricity prices to increase?

Electricity – at least when it comes from a utility company – is a commodity and is therefore subject to the forces of supply and demand. At the most basic level, electricity prices are rising because demand is outpacing supply.

After decades of relatively flat demand, electricity demand is increasing from home electrification, electric vehicle charging, and new power-hungry AI data centers coming online.

On the supply side, there are serious issues at the core of the electricity supply chain. For example, the central grid system itself is outdated and inefficient, and the cost of trying to upgrade or rebuild grid infrastructure is passed onto utility ratepayers.

graph showing electricity prices from 2000 to 2025

Related reading: What’s the Average Electric Bill in Each State?

 

When will electricity prices go down?

Given the market forces explained above, and a 45-year trend of rising electricity prices, it’s hard to imagine electricity prices coming down significantly in the near future.

The chart below shows the average electricity price in the US from 1979 to 2024. In that 45-year period, prices have increased at an average annual rate of 2.9% and have only decreased year-over-year nine times.

Historical Electricity Prices Chart

chart showing average US utility electric rates from 1979 to 2024

Based on this history, electricity prices may fall year-over-year once or twice every decade, but in the big picture, they will continue climbing at a steady rate. The only question is at what rate will they climb?

 

 

Electricity price forecasts: 2026 and beyond

Depending on where you live, residential electricity rates are projected to rise between 15% and 40% by 2030, according to ICF, and could double by 2050. The main cause: We’re using more and more electricity to power AI, industrial manufacturing, transportation, heating, and cooling, and we aren’t building energy infrastructure fast enough to balance supply and demand.

Unfortunately, the ICF rate forecast may end up being lower than reality. In July 2025, President Trump signed the “One Big Beautiful Bill” into law, which removed incentives and made it harder to build wind and solar projects needed to meet rising power demand.

 

Set a flat rate for your electricity

Even if electricity prices go down in 2026 or the coming years, they are all but guaranteed to continue rising in the long term based on market forces. Home solar allows you to set a flat rate for your electricity and hedge against energy inflation.

Connect with an Energy Advisor to learn more about hedging against energy inflation with solar.