Now is the time to get solar panels in Illinois

If ComEd, Ameren, or MidAmerican is your electricity provider and you connect your solar panel system to the grid, you can currently benefit from net metering, one of the best solar panel incentives available. 

Unfortunately, net metering is about to become much less valuable in Illinois.

If you go solar before December 13, 2024, you'll retain the full benefit throughout your system's lifetime. If you don't, you could miss out on thousands in solar savings. Here's what you need to know.

Net metering makes it so homeowners with solar panels owe very little, or even nothing, on their electric bills.

With net metering, you earn credits when your solar panels send excess electricity to the grid. When the sun isn't shining and your home needs to pull electricity from the grid, your utility will apply these credits to your bill.

Right now, Illinois homeowners with solar panel systems can apply net metering credits toward their entire electric bills in Illinois.

But if your system is installed and connected after January 1, 2025, you can only apply net metering credits to the supply and transmission portion of your bill. This means you can't use credits toward delivery charges, taxes, or fees.

How much these changes impact your savings depends on how much electricity you use, the size of your solar panel system, and your utility company. In many cases, though, they will result in significant losses. We're talking up to 35% in lost savings over 20 years.

The only silver lining is that ComEd and Ameren customers can now get an upfront rebate if they install or already have a solar panel system and/or a battery storage system with a smart inverter.

You'll earn $300 for every kW of solar or kWh of energy storage you install. So for a 5 kW solar panel system, you'd earn $1,500. For a 5 kW solar panel system with a 10 kW battery, you'd earn $4,500.

If you choose to forgo net metering, you can get this rebate now. But we don't recommend it. In most cases, your savings from net metering will far outweigh the value of the rebate. Here's an example from a real EnergySage customer:

• Monthly electric bill: $200

• Supply portion of the bill: $80 (40% of total bill)

• System size: 10.9 kW

• Percent of electricity need met: 108%

• Rebate amount: $3,270

• Current 20-year savings including inflation: $47,000

• 20-year savings after net metering changes, including the rebate: $31,000

• Lost savings: $16,000 (34%)

If you can't install solar panels by the deadline, this rebate is definitely worth taking advantage of, though. In that case, we recommend pairing your solar panels with a battery to reduce your reliance on the grid. (That way, you'll get both rebates.)

The good news is that if you go solar before the deadline, you'll lock in Illinois' current net metering policy for the lifetime of your system. Even if you move, the status will transfer to the new homeowner.

Here's your checklist of action items:

• Get quotes as soon as possible so you have time to compare and shop around. Before choosing an installer, make sure to ask if they have the capacity to install your system on time. They may not be able to guarantee it, but they should feel confident.

• Choose an installer and sign a contract. We recommend doing so by the end of September at the latest. This timeline may get even shorter as demand spikes.

• Get your system installed by December 13, 2024, and make sure your installer completes and submits all of the required documentation (including Witness Testing) by 5 p.m. Central Time. Both ComEd and Ameren have guaranteed that as long as you meet these criteria, you'll receive full net metering benefits.

• Don't make any major changes to your system's size once it's installed. Doing so will cause you to lose your net metering status.

Have questions? Our free Energy Advisors are here to help. When you get quotes through EnergySage, they'll walk you through everything you need to know to increase your chances of installing solar panels before the deadline.