Solar Panels Cost 5.2k-15k in Chicago, IL | August, 2024

Solar Panels Cost $5.2k-$15k in Chicago, IL | August, 2024

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How much do solar panels cost in Chicago, IL in 2024?

Going solar in Chicago, IL averages out to $3.76 per watt in August, 2024.

Utilizing the cost, we are able to come to the conclusion that for every 1 kW (1000 watts) your solar system can generate, you will need to spend, on average, $3,760 to have it installed. Taking into consideration the 30% federal tax credit, a 5 kW panel install in Chicago typically costs $13,160. It should be noted that a bigger system might be necessary to adequately cover your energy demands.

By selecting your county on the left, you can find out the average roof size and the average maximum capacity for residential solar panel systems in your area. You can review the price, payback period, and 20-year average savings for a 5 kW system in your county below.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Chicago: $13,160US Average: $12,634
Average Payback Period The number of years until you break even on the solar investment.
Chicago: 10 yearsUS Average: 8 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Chicago: $8,682US Average: $15,248

Solar Potential in Chicago

Estimated system size and solar electricity production per median viable roof in
Chicago.

Roof size 518sq. ft.
Capacity 7.25kW DC
Electricity 8.3kkWh AC per yr.

Electricity Costs in Chicago, IL & What that Means for Your Solar Panel Pricing

Energy consumers in Chicago usually pay $114.51 per month for electricity, with a typical monthly usage of607 kWh. This statistic also reflects data from apartments and smaller housing units, which typically use less energy consumption.

In August 2024, the electricity rate in Chicago, IL is on average 18.87¢ per kWh.

Average citizens in Chicago may need a solar power system with a capacity of 6 kW or more to take care of their entire electricity usage requirements. Right now, a 6 kW setup will cost around $22,560 upfront, with the 30% federal tax credit, the cost lowers to $15,792.

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Average solar panel costs by system size in Chicago

On the left side below, you can find a detailed cost breakdown for various solar panel system sizes set up in Chicago. When you choose a more extensive solar system, the cost is greater, but it also leads to more significant electricity savings and a more substantial income tax credit.

In the calculator provided below and to the right, you will find a breakdown of solar panel costs and benefits, calculated with an average $114.51 electric bill for Chicago. More tailored results can be achieved by modifying the $114.51 to your usual bill amount.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $521 a year
Est. Price
$5,264
Savings from a 2kWthis system
  • Est. yearly production 2,745 kWh
  • Est. monthly savings $43
  • Full payback in 4 years
Environmental Impacts
  • Reduces CO2 emissions by 0.86 tons a year
  • Equivalent to planting 39 trees a year
  • Equivalent to driving 2,125 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $782 a year
Est. Price
$7,896
Savings from a 3kWthis system
  • Est. yearly production 4,117 kWh
  • Est. monthly savings $65
  • Full payback in 6 years
Environmental Impacts
  • Reduces CO2 emissions by 1.29 tons a year
  • Equivalent to planting 59 trees a year
  • Equivalent to driving 3,188 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $1,043 a year
Est. Price
$10,528
Savings from a 4kWthis system
  • Est. yearly production 5,489 kWh
  • Est. monthly savings $87
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 1.72 tons a year
  • Equivalent to planting 79 trees a year
  • Equivalent to driving 4,251 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,304 a year
Est. Price
$13,160
Savings from a 5kWthis system
  • Est. yearly production 6,861 kWh
  • Est. monthly savings $109
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 2.15 tons a year
  • Equivalent to planting 99 trees a year
  • Equivalent to driving 5,314 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,564 a year
Est. Price
$15,792
Savings from a 6kWthis system
  • Est. yearly production 8,234 kWh
  • Est. monthly savings $115
  • Full payback in 11 years
Environmental Impacts
  • Reduces CO2 emissions by 2.27 tons a year
  • Equivalent to planting 104 trees a year
  • Equivalent to driving 5,625 mi less a year

Chicago Solar Panel Installation Incentives & Rebates | 2024

Rural small businesses and farms can benefit from the REAP Grant, which may cover between 80% and 100% of your solar energy or wind turbine installation costs. To determine your eligibility, use our REAP Grant eligibility tool.

Almost all residents are eligible for the 30% federal income tax credit for residential solar, which makes it a feasible option in various states in the country. A variety of regional and state programs are available to encourage solar energy adoption.

There are 10 solar rebate and incentive programs currently offered in Illinois by multiple utilities and government bodies.

Solar incentives in IL

City of Chicago - Small Business Improvement Fund

Value:Up to $150,000

The Chicago government has established a Small Business Improvement Fund to support businesses making energy efficiency upgrades through grants. A private organization, SomerCor 504, handles the practical business of the fund. Projects eligible for grants include energy-efficient HVAC, roofing, windows, and insulation. Funding can cover three quarters of project costs. Applicants are subject to caps on net worth and number of employees. Businesses that rent their property may be subject to additional conditions. Additional information is available from the SomerCor website.

City of Chicago - Green Building Permit Programs

Value:Up to $25,000

Chicago offers specialized permitting processes for various environmentally-friendly projects or energy efficiency upgrades. Any home, business, or industrial facility may qualify to have their review period expedited and fees waived. Eligible installations and upgrades include solar PV/thermal systems, wind turbines, efficient roofing, rain reclamation, and geothermal systems; all must be LEED or Green Globes certified to qualify. Once a project is approved, the maximum turnaround time shortens to 30 days. Further, any fees up to $25,000 become waived. Additional information and early application forms are available from the Chicago website.

City of Chicago - Solar Express Permit Program

Value:Varies

Through a 2013 ordinance, Chicago homes and businesses may be eligible for a streamlined permitting process for rooftop solar PV installations. Depending on the system's size, applicants may receive a $100 discount on permit fees and a same-day approval with waived zoning evaluation. Interested property owners must hire a solar contractor certified by both ComEd and the City of Chicago. Participating contractors will follow new guidelines established by the ordinance when applying for the expedited process. Additional information is available through the Chicago municipal website.

Illinois Clean Energy Community Foundation Grants

Value:Varies

Commonwealth Edison funds the Illinois Clean Energy Community Foundation (ICECF). The foundation supports private investment in renewable energy for Illinois through a variety of grant initiatives targeted at communities and schools. Eligible projects for a grant include solar, wind, and biomass installations interconnected to the grid. One initiative funding wind power for schools also supports related educational programs. Additional information is available through the ICECF website.

Net Metering

Value:Varies

Renewable energy and distributed generation customers in Illinois may enter net metering or "dual metering" arrangements with their utility. By using their generation system, customers generate renewable energy credits. By law, they hold ownership of the RECs they generate, but they may choose to sell them to the utility upon signing a net metering contract. Dual metering is for property types in a "competitive class". Utilities should install a dual-channel meter to measure net excess generation (NEG) sent back to the grid. The customer will receive a bill credit for monthly NEG at a variable rate. Net metering operates in a similar fashion, but uses a single bidirectional meter and is designed for residential and certain commercial properties (these are "non-competitive classes".) Additional information is available from the Illinois Department of Energy.

Interconnection Standards

Value:Varies

Illinois has adopted various state standards for distributed generation and interconnection using systems rated for less than 10 MW. Regulations are amended and enforced by the Illinois Commerce Commission (ICC). Each connected generation system is sorted into one of four tiers based on capacity. Which tier a system falls into determines engineering standards, permit processes, and the minimum liability insurance coverage that the system's owner must carry. Distributed generation for systems over 10 MW is also standardized under a different set of rules. Additional information is available from the ICC website.

Renewable Portfolio Standard

Value:Varies

The Illinois legislature enacted the state's first renewable portfolio standard in 2007 and established the Illinois Power Agency for its enforcement. The current standard requires 25% of the state's renewable energy to come from renewable sources by 2026, with 6% coming from solar installations, 75% from wind turbines, and 1% from distributed generation systems. Compliance is measured using a renewable energy credit (REC) system pegging electric capacity to an adjusted dollar value. Utilities in the state must obtain these credits through their own generation activities or by purchasing them from distributed generation customers.

Energy Efficiency in State Government

Value:Varies

New government buildings or renovation projects in Illinois should comply with certain green building standards. Any new occupied state building or renovation affecting a maximum of 10,000 square feet should meet the highest feasible LEED standard, though the state does not need to apply for formal LEED certification. New buildings or renovation projects over 10,000 square feet must meet LEED Silver standards and apply for formal certification. A project may be exempt if costs toward meeting green building standards exceed benefits. Historic buildings may carry an exemption by default if improvements would negatively affect their aesthetics or status. Additional information is available from the Illinois Department of Commerce website.

Illinois Municipal Electric Agency - Electric Efficiency Program

Value:Varies

Residential, commercial, and wholesale customers of the Illinois Municipal Electric Agency may be eligible for a variety of financial incentives on energy efficiency equipment and projects. Eligible items and services will change from time to time. Current programs include rebate offers on HVAC, lighting, motors, and generation equipment. For each of these projects, the rebate amount averages at 7 cents per saved kilowatt hour for the first year of the improvements' deployment. The application process involves project reviews. Customers should submit copies of the city permits they have obtained for their proposed projects. To ensure accountability, IMEA requires the submission of receipts and a final inspection upon completion of the project. Additional information is available from the IMEA website.

Solar Renewable Energy Credits

Value:Varies

The Illinois Power Agency is a legislative organization that aids several private electrical utilities (Commonwealth Edison and Ameren, specifically) in purchasing renewable energy credits, including credits designated exclusively for solar energy. To meet renewable portfolio standards, the IPA acts as a diplomatic middleman to create purchasing agreements between utilities. As IPA both designs and operates procurement programs using a variety of tracking systems, customers participating in arrangements such as net metering may interface directly with the IPA. Additional information is available from the agency website.

Are solar panels worth it in Illinois?

For homeowners in Chicago who expect to stay in their residence beyond the solar payback period, solar panels make an excellent investment. A 5 kW solar system in Chicago, IL might save you an average of $14,322.4 over 20 years, with the break even point typically being 10 years.

The cost of not having solar panels in Chicago, IL

In addition to forgoing the savings, the absence of solar panels or another backup energy source results in full dependence on your electric utility for your power needs. The news has recently pointed out that total reliance on your utility is not always ideal.

Annually, customers in Chicago have encountered approximately 0.59 utility outages.Yearly, customers in Chicago have encountered approximately 0.59 utility outages. On average, the length of an outage is 48.99 minutes. Major events like grid management errors, earthquakes or construction accidents can cause these durations to rise considerably.

A solar panel system, with or without a backup battery, could help mitigate the effects of future outages you might face.

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What impacts the cost of solar panels in Chicago, IL?

Your Energy Needs - While the upfront cost is greater, the price per watt decreases with larger solar panel systems. Homeowners often discover that setting up a solar system to fully cover their electric bill is a smart choice, leading to the most savings.

Make & Model - Similar to other products, solar panels come in a range of makes and models. Considering the brand preferences that your installer may have, it's crucial to pick a recommended contractor. The employment of high-quality materials is likely to yield a more positive long-term experience for buyers.

Solar Panel Type - It's clear why monocrystalline panels are now the standard in the industry. These panels cost more but yield more energy. Many installers in the industry utilize panels constructed from this material.

Your Property - Each property and residence is unique. Issues like trees, irregular terrain, or additional considerations may add to the complexity of the installation. Most solar installers currently use satellite imagery to assess your home and factor in these considerations into the preliminary cost estimate.

Labor Rates - Differences in employee wages across companies result in expenses that are transferred to the consumers. Reviews for work and customer service are frequently higher for businesses that pay higher wages.

Permitting & Interconnection - The local permitting and utility interconnection fees, which differ by region, will impact your final installation price. Quality installers will factor these costs into your first quotes to prevent unexpected expenses.

See what solar panels cost in other IL cities

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Who are the best solar installers in Chicago?

Freedom Forever

Temecula, CA(800) 685-1850

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Solar SME Inc.

Duncanville, TX(832) 626-2337

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

YellowLite

Cleveland, OH(877) 743-8757

Services

  • Reparation of solar arrays.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Auditing of energy requirements for independent energy generation.
  • Installation of solar arrays.
  • Monitoring of independent energy generation.

SunVest Solar

Pewaukee, WI(262) 547-1200

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Plug PV

Albany, NY(518) 948-5316

Services

  • Monitoring of independent energy generation.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

SunPro Solar

Mandeville, LA(866) 599-3643

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Monitoring of independent energy generation.
  • Auditing of energy requirements for independent energy generation.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.

Power Home Solar

Mooresville, NC(704) 870-3670

Services

  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Reparation of solar arrays.

RISE Power

Richardson, TX(855) 747-3769

Services

  • Monitoring of independent energy generation.
  • Reparation of solar arrays.
  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.
  • Installation of batteries for energy storage.

Dividend Finance

San Francisco, CA(415) 805-7000

Services

  • Installation of batteries for energy storage.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Eagle Point Solar

Dubuque, IA(563) 582-4044

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Reparation of solar arrays.

Palmetto Solar

Charleston, SC(855) 339-1831

Services

  • Reparation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Installation of solar arrays.
  • Monitoring of independent energy generation.
  • Installation of batteries for energy storage.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.

Silver Sun Solar

Deltona, FL(340) 227-7785

Services

  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

Tick Tock Energy

Effingham, IL(217) 994-9020

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Rethink Electric

Wood Dale, IL(630) 747-4587

Services

  • Monitoring of independent energy generation.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Harvest Solar

Jackson, MI(888) 907-6527

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

AES Solar

Carterville, IL(618) 988-0888

Services

  • Installation of solar arrays.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.

Sunnova Energy

Houston, TX(866) 786-6682

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Sunrun

San Francisco, CA(833) 394-3384

Services

  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Monitoring of independent energy generation.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

GRNE Solar

Palatine, IL(312) 859-3417

Services

  • Installation of solar arrays.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Sigora Solar

Charlottesville, VA(434) 465-6192

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Ideal Energy

Fairfield, IA(800) 634-4454

Services

  • Reparation of solar arrays.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Soltage

Jersey City, NJ(201) 432-1786

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Engie North America

Houston, TX(713) 636-0000

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Installation of solar arrays.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.

LightEdison

Denver, CO(888) 966-6377

Services

  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

PowerHome Solar

Mooresville, NC(704) 870-3670

Services

  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.

Empire Solar Group

Salt Lake City, UT(800) 467-4562

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Badass Energy

Claremont, CA(909) 320-9860

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.

Chicago, IL Solar Panel Cost FAQs

  • The typical cost per watt for solar panels in Chicago, IL as of August, 2024 is $3.76/W. With the federal tax credit, the cost of a 5 kW solar panel system in Chicago, IL drops to roughly $13,160.
  • If you live in Illinois, you can find 10 rebates and incentives through different utilities and government agencies. On top of that, most individuals are eligible for the 30% federal income tax credit.
  • Cash payments offer the highest savings, yet multiple financing options now available for solar panels are financially beneficial as well. Many installers have partnerships with financing companies and will provide this information in your initial quotes.
  • Yes, the average 5 kW solar panel payback period in Chicago, IL stands at 10 years, yielding average electricity savings of $14,322.4 over 20 years.
Matt Hope
Last Reviewed By: Matt Hope
Published: 2024-08-15