Illinois Net Metering

A solar benefit called “net metering” is NOT going away in 2025, but it is adjusting, under state law.   

What Is Net Metering?

Net metering is a benefit for solar users. Under Illinois law, investor-owned utilities (ComEd, Ameren, MidAmerican) are required to offer net metering for renewable energy generation (such as solar power). This means anytime the solar panels a consumer installs generate more power than the household needs, that consumer can sell that excess electricity back to the utility and receive electric bill credits. The utility will only charge the solar customer for the net amount of electricity consumed, plus any other fixed delivery charges (such as the customer charge, standard metering charge, delivery service cost adjustment).

It used to be difficult for solar users in Illinois to sell excess power back to the utility, but in 2008 legislation took effect that simplified the process. 

So What's Happening in 2025?

On Jan. 1, 2025, the net metering benefit is being reduced for Illinois residents who decide to install solar panels on their homes. Two important points: 

1. The benefit is being reduced for new solar customers only. Illinois consumers who already have solar panels on their homes will continue to get the full net metering benefit over the life of their system.
2. While the benefit is being reduced, it is still a benefit, and solar is still a good deal for Illinois consumers.

How will the net metering benefit change after 2025?

Net metering currently gives 1:1 per kilowatt-hour credits on these parts of your electric bills: Supply, Delivery and taxes and fees.

If you have solar panels on your home now: You are guaranteed this current version of net metering for the lifetime of your system (defined, under net metering regulations, as 30 years from the date the solar installation received permission to operate). That means you will continue to have this full benefit on all three sections of your bill.  

If you install solar panels after Jan. 1, 2025 a few significant changes:  

• Net metering credits will be applied to the Supply section of your bill only, rather than all three sections.
• You also will be eligible for a “Distributed Generation (DG) Rebate.” The rebate requires the use of a smart inverter (equipment that helps transfer electricity from the solar panels to your home) and the value of the rebate will depend on the size of your installation. (Under law, the value of the rebate will be at least $300 per kilowatt of generating capacity.)
• Your net metering credits will not be subject to an annual reset or zeroing out. This means, your excess net metering credits will roll over month to month and never expire. (Note: Current net metering customers not on Hourly Pricing and who have not taken the DG Rebate will continue to see an annual expiration on their excess rollover credits.)

To summarize, this new system means customers who install solar panels after Jan. 1, 2025 will receive 1) a larger benefit upfront; 2) a reduced net metering benefit throughout the lifetime of the system; and 3) credits that never expire.

If I’m considering solar, what should I do?

If you are interested in understanding the financial details of a project under the new Illinois net metering adjustment, we recommend obtaining multiple quotes from reputable installers. Since every solar installation is custom built, the best way to find out is by obtaining a formal design and quote.  

Will I Lose Savings?

If you currently have panels on your home, the way you are compensated for net metering will not change.

If you install panels after Jan. 1, you will continue to save on your utility bills, but the net metering benefit will be lower.

However, every project now qualifies for the ComEd Distributed Generation rebate, which in most cases levels out any long term net metering reduction.  

Why is this happening?

A transition like this is typical in states as they achieve higher levels of solar adoption–and Illinois in recent years has enjoyed a solar boom. 

A reduction in the net metering benefit was planned in state law as far back as the Future Energy Jobs Act of 2016. The utilities would have preferred this change to happen much sooner than 2025, but consumer advocates successfully extended full net metering benefits for years.

Do I need batteries?

Changes to Net Metering policies can spur battery installations paired with solar, and in states like California under Net Metering 3.0, often times, it doesn’t make sense to install solar without batteries.  

However, in Illinois, solar does not need to be paired with batteries to reap the benefits of partial net metering.  We’re finding minor adjustments, such as scaling back the system size, adjusting the layout to include multiple azimuth roof faces, and meticulous analysis of historical consumption can achieve financial results similar or better to full retail net metering.  

At the start of 2025, Illinois net metering adjusts from 1:1 “full retail” to supply only “partial” net metering.  While long term financial benefits may hinder slightly, the ComEd DG Rebate significantly improves financials in the first year.  When applying the DG Rebate and adjusting the system size and layout, don’t be surprised if the financials actually improve!