Solar Frequently Asked Questions

Solar incentives can vary by state. The most significant incentive is the federal investment tax credit (ITC), which allows you to deduct a percentage of your solar energy system's cost from your taxes. Some states offer additional tax credits, and certain municipalities and utilities provide cash rebates or other incentives. Additionally, commercial solar installations are eligible for a five-year Modified Accelerated Cost Recovery System (MACRS).

The cost of a solar energy system depends on the size of the system, your location, and available incentives. Solar prices have decreased by as much as 70% in recent years, making it a sound financial investment. Larger systems may benefit from economies of scale, reducing costs per kW. An Arrow Solar Energy Consultant can provide a Free Solar Analysis to help you understand how solar can reduce and manage your electricity costs.

Solar power often costs less than traditional electricity from utility companies. As traditional power costs rise, consumers are turning to alternative, clean, and sustainable energy sources like solar. The amount you save will depend on your solar system's size and your household's electricity usage. Arrow Solar’s Free Solar Analysis will provide the financial and environmental information you need to determine if solar is right for you.

In Illinois, solar system owners can create SRECs from the energy produced by their solar panels. One SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated. Owners can sell SRECs through a market set up by the Illinois Power Agency (IPA) for a 15-year contract. SRECs are sold separately from the electricity produced, meaning you can use the electricity to lower your electric bill and sell the SRECs to buyers. Payments for SRECs can be lump-sum or spread over seven years, depending on system size. Learn more about the Illinois SREC program at Illinois Shines.