Solar resource
Your solar production in Chicago
4.23 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Chicago, IL. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Commonwealth Edison (ComEd) electricity rate
$0.135/kWh residential
- Utility
- Commonwealth Edison (ComEd)
- Residential rate
- $0.135/kWh (blended)
ComEd net metering credits excess solar at the full retail rate. Illinois' Climate and Equitable Jobs Act (CEJA, 2021) directs the Illinois Commerce Commission (ICC) to expand net metering access. Illinois Shines (Adjustable Block Program) provides additional SREC income on top of net metering savings — see incentives below.
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Incentives
Available solar incentives in Chicago, IL
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Illinois Shines — Adjustable Block Program (ABP) | Rebate | Lump-sum SREC payment of $7,000–$10,000+ for a 6 kW residential system (block price dependent) | State |
| ComEd Net Metering | Net Metering | Retail rate credit (~$0.135/kWh) for excess solar exported to the grid | Utility |
| Illinois Property Tax Exemption for Solar | Exemption | Added value from solar excluded from assessed property value for up to 10 years | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17100
- Federal ITC (30%)
- −$5130
- Net system cost
- $11,970
- Installed cost per watt
- $2.85/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Illinois median installed cost for systems 3–10 kW. Note: the Illinois Shines lump-sum ABP payment is not reflected in the savings_estimate above — it can reduce effective net cost by $7,000–$10,000+ and dramatically shorten payback.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $865
- Simple payback period
- 13.8 years
- 25-year net savings
- $9655
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Chicago
- Your panels produce power — even in Chicago winters Chicago averages 4.23 peak sun hours per day — lower than Sun Belt cities but still viable for solar. A 6 kW system in Chicago produces roughly 6,400 kWh per year, peaking strongly in June–July and slowing through December–January. Cold, clear winter days can also be productive since solar panels operate more efficiently at lower temperatures.
- An inverter converts DC to AC A solar inverter converts DC electricity from the panels to the AC power your home uses. Modern string inverters and microinverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from ComEd Every kWh your system produces offsets what you buy from ComEd at approximately $0.135/kWh. A 6 kW system in Chicago produces ~6,400 kWh/year — saving approximately $865/year at current ComEd rates.
- Excess power flows back to ComEd at retail rate Under ComEd's net metering program, excess solar exported to the grid is credited at the full retail rate against your monthly bill — approximately $0.135/kWh. Credits carry forward monthly, with unused credits retiring at your annual anniversary.
- Illinois Shines pays you upfront for 15 years of RECs Illinois Shines (Adjustable Block Program) purchases the renewable energy credits (RECs) from your system for 15 years upfront. For a 6 kW Chicago system, this typically yields a lump-sum payment of $7,200–$10,560 through an Approved Vendor — dramatically improving payback. This is separate from net metering savings and the federal tax credit.
- You claim the 30% federal tax credit In the installation tax year, claim a 30% federal Investment Tax Credit on the full installed cost. On a $17,100 system, that's $5,130 off federal income taxes — reducing your net cost to $11,970 before Illinois Shines.
FAQ
Common solar savings questions for Chicago, IL
How much can I save with solar in Chicago, IL?
A 6 kW system in Chicago produces roughly 6,400 kWh/year and saves approximately $865/year in electricity costs at ComEd's current rate. After the 30% federal tax credit ($5,130), the net system cost is about $11,970 — giving a payback of ~14 years on energy savings alone. However, the Illinois Shines program (Adjustable Block) can add a lump-sum payment of $7,200–$10,560 at installation, potentially reducing payback to 4–6 years.
What is Illinois Shines and how does it work?
Illinois Shines is the state's Adjustable Block Program (ABP), administered by the Illinois Power Agency under the Climate and Equitable Jobs Act (CEJA, 2021). It purchases 15 years of Renewable Energy Credits (RECs) from your system at a fixed block price, paid as a lump sum through an Approved Vendor (your solar installer). For a Chicago 6 kW system at ~6.4 MWh/year × 15 years = 96 RECs at the current block price (~$75–$110/REC), the payment is approximately $7,200–$10,560. This is one of the most significant solar incentives in the US. Check current block prices and availability at illinoisshines.com.
What is CEJA and how does it affect solar in Illinois?
CEJA (Climate and Equitable Jobs Act, 2021) is Illinois' major renewable energy legislation targeting 100% clean energy by 2050. For solar: it expanded Illinois Shines funding, preserved and strengthened net metering requirements, and created new equity and community solar programs. CEJA is actively reshaping Illinois solar economics — new program rules and funding tranches are released periodically. Monitor the Illinois Power Agency at ipa.illinois.gov for current program status.
Does Chicago get enough sun for solar to be worth it?
Yes, though the economics depend heavily on incentives. Chicago's 4.23 peak sun hours/day is lower than Sun Belt markets, making raw electricity savings ($865/year for a 6 kW system) modest compared to LA or Miami. However, Illinois Shines substantially changes the math — the ABP lump-sum payment can cut payback from ~14 years to 4–6 years, making Chicago solar economics competitive or better than many Sun Belt markets.
How does ComEd net metering work?
ComEd credits excess solar exported to the grid at the full retail electricity rate — approximately $0.135/kWh — against your monthly bill. Credits carry forward month-to-month. Any remaining credits at your annual anniversary date are retired (not paid out as cash). CEJA (2021) preserves retail-rate net metering for Illinois residential customers. Verify current terms at comed.com/solar.
How many solar panels does a Chicago home need?
A typical Chicago home using 700–900 kWh/month needs a 6–8 kW system — roughly 16–21 panels at 380–400 W each. Chicago's lower sun hours mean a larger system is needed to match the output you'd get from a smaller system in Miami or LA. Use the calculator above with your monthly bill to estimate.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://www.illinoisshines.com/
- https://ipa.illinois.gov/renewable-resources/adjustable-block-program.html
- https://www.comed.com/MyAccount/MyBillUsage/Pages/NetMetering.aspx
- https://openei.org/apps/USURDB/
- https://ilga.gov/legislation/ilcs/ilcs3.asp?ActID=596&ChapterID=9
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-17.