A New Chapter for Solar in Illinois
The beginning of 2025 brought a significant shift in Illinois’ clean energy landscape with the implementation of Net Metering 2.0 (NEM 2.0). For many homeowners, this change has sparked questions, confusion, and concerns—chief among them: “Is solar still worth it under NEM 2.0?” As someone who has spent years helping Illinois families transition to solar, I believe it’s important to address this question with honesty and clarity.
The Shift from Full Retail to Supply-Only Credits
Prior to 2025, Illinois followed a full retail net metering model. This meant that when a homeowner’s solar system produced excess electricity, the utility credited them at the full retail rate, including the energy supply, delivery charges, taxes, and fees. This structure made going solar a clear financial win. However, starting January 1, 2025, newly installed systems now fall under NEM 2.0, where homeowners are only credited for the supply portion of their electricity bill. Delivery charges and other fixed fees are no longer included in solar credits. While this change does slightly extend the payback period, it doesn’t eliminate the financial or long-term value of solar. Instead, it prompts a more comprehensive look at the true benefits of solar energy.
Rising Utility Rates: A Stronger Case for Solar
One of the biggest reasons why solar remains a strong option is the steady rise in utility rates. In late 2024, the Illinois Commerce Commission approved a $606 million rate hike for ComEd and a $309 million increase for Ameren. These are not isolated cases—electricity rates in the Midwest have been climbing at a rate of 2.3% year over year, and with inflationary pressures, that trend is expected to continue. In this environment, solar isn’t just about reducing monthly bills—it’s about gaining control, creating predictability, and increasing energy resilience.
Illinois Still Leads with Incentives and Support
Illinois continues to offer a favorable environment for solar adoption through several impactful programs and incentives. The Distributed Generation (DG) Rebate offers homeowners $300 or more per kilowatt (kW) of system capacity when they install a smart inverter, potentially yielding thousands in savings. The Illinois Shines Program remains a leader in the country by providing ongoing incentives for producing clean energy. On top of that, the federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of their system cost from their federal taxes—often amounting to $5,000 to $10,000 or more. For those concerned about upfront costs, Power Purchase Agreements (PPAs) allow homeowners to install solar panels at no cost and simply pay for the electricity they use—typically 20–30% cheaper than utility rates.
More Than Savings: The Value of Energy Independence
Beyond financial considerations, going solar represents energy independence. It means being less reliant on a utility company and more in control of your household expenses. It also contributes to a cleaner and more decentralized energy grid, and often adds value to your property. Homeowners who adopt solar today are not only safeguarding their own future—they’re helping shape a more sustainable one for everyone.
Debunking Common Solar Myths
Of course, there are still common concerns that I hear often. “Will I still save money with NEM 2.0?” Yes, although savings may be slightly lower than under NEM 1.0, they’re still significant and long-term. “Is it too late to go solar?” Definitely not. With rising rates and strong incentives still in place, now is actually a smart time to make the switch. “Is solar only for wealthy homeowners?” Not anymore. Thanks to PPAs, rebates, and tax credits, solar is now within reach for many middle- and modest-income families.
The Bottom Line: Own It or Pay for Someone Else’s
Here’s something most people overlook: if you’re not paying for solar on your own roof, you’re likely paying for it on someone else’s. Utility companies are investing heavily in renewables, and when they build solar infrastructure, you pay them for it—at the rates they choose. When you own your own solar system, you capture the value yourself.
A Smart Investment, Now More Than Ever
So while the net metering structure has changed, the opportunity solar presents has not. In fact, with utility costs rising and Illinois continuing to lead in green energy support, the case for solar may be stronger than ever. If you’re a homeowner in Illinois who hasn’t looked into your solar options under NEM 2.0, now is the perfect time to explore them. Solar remains a wise investment—but as with all good investments, it requires timing, understanding, and the right guidance.
Abrar Rushnaiwala, also known as Rush, is the Co-Founder of Maintown Solar, a nationwide solar dealer and development firm serving homeowners and commercial clients throughout Illinois and across the Nation. He has helped hundreds of families take control of their energy future. Learn more at www.maintown.solar .
