Solar Incentives You Should Know About in 2026
Thinking about going solar in 2026? Now is a perfect time to take a closer look. A wide range of incentives are currently available for homeowners, farms, and businesses, helping make the switch to solar smarter and more cost effective than ever. Stateline Solar customers own their solar arrays, which means they receive the incentives applicable to them and those funds can assist them with their return on investment.
Many incentives apply to residential properties, while farms and businesses often qualify for even more support. Here are some solar incentives currently available in our region.
Net Metering and Smart Solar Billing
Net metering measures the power delivered to your home and power received by the utility from your solar array. At the end of the month, excess kWh credits are used to lower your power bill.
With net metering, your solar system powers your home first, and any extra electricity you generate is sent back to the utility. The utility keeps track of the energy you supply and the energy you use from the grid. At the end of the month, any extra kilowatt-hour (kWh) credits you’ve earned are applied to your bill, helping to reduce your overall electricity costs. This means your solar array can save you money not just when it’s sunny, but all month long.
ComEd Distributed Generation Rebate
Some utilities offer their own incentives, like ComEd offers a Distributed Generation (DG) Rebate program to help offset the out-of-pocket costs of installing a qualified renewable energy generating system. The DG Rebate program is available to residential customers that install distributed generation projects. The rebate for residential and small commercial projects is $300 per kW of solar installed.
If a battery is added to this system, the rebate for this project is $300 per kWh. Customers must be on hourly pricing to qualify.
Illinois Solar Renewable Energy Credits
Solar Renewable Energy Credits, often called SRECs, are one of the strongest solar incentives available in Illinois. These credits help states meet Renewable Portfolio Standards, which are goals requiring a certain percentage of energy to come from renewable sources.
Illinois SRECs can potentially cover 30-50% percent of the total solar investment depending on the size of the system, the current market rate of credits, and the program category a project falls into.
SRECs are paid out over a set term and have become a defining reason why solar continues to grow across the state.
Wisconsin Focus on Energy
The State of Wisconsin offers rebates and incentives to encourage energy-saving projects, including solar installations. Incentive amounts vary based on system size, location, and whether the applicant is a homeowner, business, agricultural producer, government entity, or non-profit.
Starting January 1, 2026, Focus on Energy will be updating its solar rebate program. Residential and non-residential systems will receive $600 per kW, up to $2,400. Non-residential customers can also receive $50 per kW beyond the initial rebate, up to a maximum of $25,000. The rural bonus for residential and agricultural systems will be discontinued, so customers must apply by January 31, 2026 for systems installed by December 31, 2025 to take advantage of current incentives.
USDA REAP Grant for Small Businesses and Farms
Rural small businesses and agricultural producers may be eligible for financial support through the USDA Rural Energy for America Program (REAP). This program can provide grant funding for solar projects, covering up to 50% of total project costs when funds are available. REAP is designed to help rural enterprises lower energy expenses, increase reliability, and support long-term sustainability.
The program may be updated at the federal level. While new grant applications are temporarily on hold, loan applications are still being accepted. Applicants are encouraged to check current program availability and funding levels as they plan their projects.
Accelerated Depreciation for Solar Systems
The IRS classifies solar PV equipment as 5-year property, allowing commercial taxpayers to expense or write off a solar investment relatively quickly. Through the Modified Accelerated Cost Recovery System (MACRS), qualifying businesses can depreciate solar equipment over five years, significantly reducing taxable income. In some years, federal bonus depreciation has also been available, enabling a substantial portion of the system cost to be depreciated in the first year. When combined with other incentives such as SRECs or the USDA REAP program, these tax benefits can make solar an exceptionally strong financial investment for farms and commercial operations, further boosting a project’s return on investment.
Is Solar Right for You?
Every property is different, and the incentives available can vary widely. That is why it is important to speak with a qualified tax professional when making a decision. Incentives can significantly reduce the cost of going solar, shorten the payback period, and increase long term savings.
Stateline Solar is here to help you understand your options and design a system that makes sense for your home, farm, or business. If you are ready to explore your potential savings, we are happy to walk you through the next steps.
