You may want to get an estimate on how much solar panels will cost to put on your house before you talk to someone who is trying to sell you panels. Installing a solar system can bring with it a large upfront cost. Get more information about estimates, incentives, net metering, and payback periods.

1. The 2023 cost benchmark for solar systems is $3.16 per watt generated by your system. This means you can estimate spending $3,160 per kW of your system. Make sure to request quotes from multiple companies because installation costs can vary.
2. Search for current listings of incentives at the Database of State Incentives for Renewables & Efficiency. The two largest incentives in Illinois include:
   1. The Federal Investment Tax Credit: from 2022 to 2032, you can deduct 30% of your solar systems costs from your federal taxes.
   2. Solar Renewable Energy Credits (SRECs): an adjustable block program that can allow you to receive a set rate per 1,000 kWh your system is expected to generate over 15 years. Payments are received back over 5 years. The rate received depends on the size of the system and service territory. For most residential systems (sized under 10 kW), the rate ranges from $75.21 to $83.75 per SREC. It is administered through Illinois Shines to support development of new solar in Illinois.

   3. Another incentive specific to low-income communities in Illinois is Illinois Solar for All. 

3. Understand net metering rates. Many power companies offer net metering, in which excess electricity that your system generates results in a payback, often as a bill credit. But keep in mind the payback rate is set much lower than the standard flat rate of electricity.
4. The expected reduction of your electric bill will be based on the size of your system. A good starting point is to size your system to generate 50-75% of your electricity needs. You would then expect a reduction of about the same amount in the electricity generation and delivery portion of your bill. Remember that other standard fixed fees and taxes will continue to apply.
5. Calculate payback period. Solar systems can require a hefty upfront payment. Taking into account the payback periods of your incentives combined with the savings you'll experience on your energy bills, your solar installer can provide a projected payback period, or the amount of time before you break even.