Pros and Cons of Community Solar in Illinois: Is It Right for You?

Unlock Solar Savings Without Rooftop Panels: How Illinois Community Solar Works

Community solar represents one of the most innovative solutions in the renewable energy landscape, allowing Illinois residents to enjoy the benefits of solar power without installing a single panel on their property. But how does this seemingly magical arrangement actually work?

The Basic Concept of Shared Solar

At its core, community solar is simple: a large solar installation—often called a solar farm or solar garden—is built in a suitable location within Illinois. Instead of powering just one home or business, this installation serves multiple subscribers who purchase or lease a portion of the energy produced.

Think of it like a community garden, but instead of growing vegetables, you're harvesting sunshine. Your share of the solar production generates credits that appear on your regular ComEd or Ameren Illinois utility bill, reducing what you owe.

Illinois Solar for All: Making Community Solar Accessible

Illinois has positioned itself as a leader in community solar accessibility through the Illinois Solar for All program. This initiative, established under the Future Energy Jobs Act and expanded by the Climate and Equitable Jobs Act (CEJA), specifically targets low-income households, environmental justice communities, and nonprofit organizations.

Through Illinois Solar for All, qualifying participants can receive guaranteed bill savings of 50% or more on the community solar portion of their electricity consumption—without any upfront costs or credit checks. This program has transformed community solar from an option primarily for homeowners with good credit into an inclusive opportunity for all Illinois residents.

The Subscription Model Explained

Most community solar arrangements in Illinois operate on a subscription basis. Here's how it typically works:

• Energy allocation: You subscribe to a specific share of a solar project, often sized to match your historical electricity usage
• Virtual net metering: The energy your share produces is fed into the grid, and you receive credits on your utility bill
• Subscription payment: You pay the community solar provider for your share at a rate that's typically 10-20% lower than standard utility supply rates
• Net savings: The difference between your utility credits and subscription costs equals your savings

ComEd and Ameren Illinois Community Solar Programs

Both major Illinois utilities participate in community solar:

ComEd (Northern Illinois): ComEd's territory has seen tremendous community solar growth. When you subscribe to a community solar project in ComEd's service area, your bill will show credits listed as "Community Solar Garden Credit" that offset your supply charges.

Ameren Illinois (Central and Southern Illinois): Ameren also supports community solar subscriptions, providing similar bill credits to participating customers. The mechanics are essentially the same, though specific credit calculation methods may vary slightly.

No Installation, No Maintenance, No Hassle

Perhaps the most appealing aspect of community solar is what you don't have to do:

• No need to own your property
• No roof assessment or structural modifications
• No permits, inspections, or installation crews at your home
• No maintenance responsibilities or repair costs
• No concerns about tree shading or roof orientation

The solar farm owner handles all aspects of installation, maintenance, insurance, and system optimization. You simply sign up, continue receiving your regular utility bill, and enjoy the savings.

The Bright Side: 5 Undeniable Pros of Joining an Illinois Community Solar Program

Community solar has gained enormous popularity in Illinois for good reason. Here are the five most compelling advantages that make it an attractive option for residents and businesses across the state.

1. Immediate Savings with Zero Upfront Investment

Traditional rooftop solar systems typically require significant upfront investment—often $15,000 to $30,000 for a residential system, even with federal tax credits. Community solar flips this equation entirely.

Most Illinois community solar programs require no upfront payment whatsoever. Instead, you simply pay for the energy your share produces at a rate that's already discounted from standard utility supply prices. This means you start saving from day one without draining your savings account or taking on debt.

Typical savings range from 10% to 20% on your electricity supply costs—and through Illinois Solar for All, low-income participants can save 50% or more. Over the course of a typical 20-year solar project lifespan, these savings can add up to thousands of dollars.

2. Perfect for Renters, Condo Owners, and Properties with Unsuitable Roofs

Roughly 37% of Illinois households are renters who have no authority to install solar panels. Add in condominium owners, those with shaded properties, homes with older or north-facing roofs, and those in historic districts—and you have millions of Illinoisans previously locked out of solar.

Community solar removes these barriers entirely. Whether you rent a small apartment in Chicago, own a condo in Peoria, or live in a shaded Victorian in Galena, you can participate in community solar. Your subscription follows you when you move within the same utility territory, making it a flexible option for those who don't plan to stay in one place for decades.

3. Support Renewable Energy and Reduce Your Carbon Footprint

By subscribing to community solar, you're directly supporting the development of new solar capacity in Illinois. Your subscription helps finance solar farms that displace fossil fuel generation, contributing to Illinois' goal of 100% clean energy by 2050 under CEJA.

The environmental benefits are tangible. According to the EPA's Greenhouse Gas Equivalencies Calculator, the average Illinois household's share of a community solar project can prevent approximately 3-4 metric tons of CO2 emissions annually—equivalent to taking a car off the road for nearly a year.

Unlike purchasing renewable energy credits (RECs), which support renewable energy more abstractly, community solar connects you to specific, local solar installations generating clean power for your community.

4. No Maintenance Responsibilities or Performance Risk

Owning a rooftop solar system means taking on responsibility for maintaining that system over its 25+ year lifespan. Inverters may need replacement, panels require occasional cleaning, and storm damage can require repairs.

Community solar subscribers have none of these worries. The solar farm developer and operator handles all:

• System monitoring and performance optimization
• Routine maintenance and cleaning
• Inverter replacements and repairs
• Insurance coverage for weather damage
• Compliance with grid interconnection requirements

If the system underperforms, that's the developer's problem, not yours. Most contracts guarantee a minimum level of credit generation, protecting subscribers from poorly performing systems.

5. Predictable Pricing and Protection from Rate Increases

Illinois electricity rates have historically trended upward, and CEJA's ambitious clean energy goals will require significant grid investments that may further impact rates. Community solar provides a degree of insulation from these increases.

Most community solar contracts offer fixed or escalator-capped pricing for the duration of the subscription. While utility rates may rise 3-5% annually, your community solar rate might increase only 1-2% per year—or remain completely fixed. This predictability makes budgeting easier and often increases your savings over time as the gap between utility rates and your subscription rate widens.

Potential Pitfalls: 4 Community Solar Cons Every Illinois Resident Should Know

While community solar offers compelling benefits, it's not the perfect solution for everyone. Understanding the potential drawbacks will help you make a fully informed decision about whether it's right for your situation.

1. Lower Savings Compared to Rooftop Solar Ownership

If you own a suitable home and can afford the upfront investment (or secure financing), rooftop solar typically provides greater long-term savings than community solar. Here's why:

Community solar limitations:

• You're paying a subscription fee to a third party who needs to make a profit
• Savings are typically limited to 10-20% of supply costs, not the full cost
• You don't own the system and won't benefit from its value at home sale

Rooftop solar advantages:

• Federal Investment Tax Credit (30% through 2032) directly benefits you
• Net metering can zero out your electricity bill entirely
• Systems often pay for themselves in 6-10 years, then provide free electricity
• Solar installations can increase home value by 4-6%

For homeowners who plan to stay in their home for 10+ years with good solar potential, rooftop installation may be the better financial choice despite the higher upfront commitment.

2. Contract Complexity and Potential for Unexpected Costs

Community solar contracts can be complex documents spanning 20+ pages with legal terminology that's difficult for average consumers to parse. Some potential issues to watch for:

Early termination fees: Most contracts span 15-25 years. If you need to exit early—perhaps because you're moving out of the utility service territory—you may face termination fees ranging from a few hundred to several thousand dollars.

Escalator clauses: While your rate might start at 15% below utility rates, escalator clauses could gradually narrow or even eliminate that gap. A 3% annual escalator on your subscription combined with a utility rate freeze could theoretically make community solar more expensive than standard service.

Allocation changes: Some contracts allow the provider to adjust your allocation percentage under certain circumstances, potentially affecting your savings.

Credit calculation complexity: Understanding exactly how credits are calculated and applied can be challenging, and discrepancies between expected and actual savings sometimes occur.

3. Limited Availability and Waitlists

Despite Illinois' strong community solar market, demand often exceeds supply. Popular programs frequently have waitlists, and specific geographic areas may have limited options.

Factors affecting availability:

• Utility territory: Most subscriptions must be within your utility's service area
• Project development timeline: New projects take 1-2 years from planning to operation
• Program capacity: Illinois Solar for All and similar programs have funding caps
• Credit requirements: Some market-rate programs require credit checks

If you're interested in community solar, it's worth signing up for waitlists early, even if you're not ready to commit immediately.

4. No Direct Asset Ownership or Investment Returns

When you install rooftop solar, you own a physical asset that generates value for decades. Community solar subscribers don't accumulate any equity in the solar installation.

Implications of non-ownership:

• No asset to pass on to heirs or sell with your property
• No depreciation benefits for businesses
• Cannot claim the federal Investment Tax Credit personally
• No leverage to negotiate better terms over time
• Dependent on the continued operation of a third-party company

For some, particularly those viewing solar as a long-term investment rather than simply a bill-reduction strategy, this lack of ownership may be a significant drawback.

Comparing Your Options

The Bottom Line: Calculating Your Savings & Choosing the Right Illinois Provider

If you've weighed the pros and cons and decided community solar might be right for you, the next step is calculating your potential savings and finding a reputable provider. Here's your roadmap to making an informed choice.

Estimating Your Community Solar Savings

Calculating potential savings requires understanding several factors:

Step 1: Determine your current supply costs

Review your ComEd or Ameren bill and identify the "Supply" or "Generation" charges. These are what community solar credits offset. For the average Illinois household using 750 kWh monthly, supply charges typically range from $60-$90 per month.

Step 2: Calculate the discount rate

Most community solar programs offer 10-20% savings on supply costs. At 15% savings on $80/month in supply charges, you'd save approximately $12 per month or $144 annually.

Step 3: Project long-term savings

Over a 20-year contract with escalating utility rates, total savings can reach $3,000-$5,000 for residential subscribers. Commercial and industrial customers with larger loads can save proportionally more.

What to Look for in a Community Solar Provider

Not all community solar programs are created equal. Use these criteria when evaluating providers:

Transparent pricing: The provider should clearly explain the subscription rate, any escalators, how credits are calculated, and projected savings under various scenarios.

Contract terms: Carefully review contract length, early termination provisions, automatic renewal clauses, and what happens if you move.

Company track record: Research the provider's history. How many projects have they completed? Are there customer complaints with the Better Business Bureau or Illinois Commerce Commission?

Project specifics: Ask where the solar farm is located, its capacity, expected production, and operational status (is it generating power now or still under development?).

Customer service: How responsive is the company to questions? Do they provide regular updates on your subscription's performance?

Verifying Provider Legitimacy

Protect yourself from scams or poorly managed programs by verifying providers:

• Check the Illinois Commerce Commission's database to confirm proper registration
• Verify participation in the Illinois Shines program through the Illinois Adjustable Block Program website
• Search for complaints on the Better Business Bureau and online review sites
• Ask for references from existing subscribers in your area

Application Process Overview

Once you've selected a provider, the signup process typically involves:

1. Application submission: Provide basic information including your utility account number and recent bills
2. Eligibility verification: The provider confirms you're in the correct utility territory and your account is in good standing
3. Contract review and signing: Carefully read all terms before signing; don't hesitate to ask questions
4. Utility notification: The provider notifies your utility to begin applying credits to your account
5. Credit activation: Once the solar project is generating power, credits begin appearing on your bill

Illinois Solar for All: Special Considerations

If you qualify for Illinois Solar for All based on income or location in an environmental justice community, you may access enhanced benefits:

• Guaranteed 50%+ savings on solar portion of electricity
• No credit check requirements
• No upfront costs or deposits
• Consumer protections and oversight by the Illinois Power Agency

Visit IllinoisSFA.com to check eligibility and find approved providers serving your area.

Making Your Final Decision

Community solar makes the most sense if you:

• Rent your home or cannot install rooftop panels
• Want guaranteed savings with no upfront investment
• Prefer zero maintenance responsibility
• Value supporting local renewable energy development
• Are comfortable with long-term contractual commitments

Consider alternatives if you:

• Own a suitable home and can afford rooftop solar
• Want to maximize long-term savings
• Prefer owning assets outright
• May move out of the utility territory soon

For help comparing your energy options across all supplier types in Illinois, explore our electricity comparison tools or pricing page.

Frequently Asked Questions

Conclusion: Is Community Solar Right for Your Illinois Home or Business?

Community solar represents a genuine breakthrough in making renewable energy accessible to all Illinois residents, regardless of whether they own their home, have a suitable roof, or can afford significant upfront investments.

The pros are compelling: immediate savings with no upfront cost, no maintenance responsibilities, accessible to renters and homeowners alike, and direct support for local renewable energy development. For the millions of Illinoisans who can't install their own panels, community solar opens a door that was previously closed.

However, it's not without trade-offs. Savings are more modest than rooftop solar ownership, contracts are long and complex, and you never build equity in the system. For homeowners with suitable properties who can make the investment, traditional rooftop solar may offer superior long-term returns.

The right choice depends on your specific circumstances: Do you rent or own? Is your roof suitable for solar? How long do you plan to stay at your current address? What's your appetite for upfront investment versus immediate savings?

Take time to research providers, understand contract terms thoroughly, and calculate projected savings based on your actual usage patterns. Programs like Illinois Solar for All make community solar even more attractive for qualifying participants, so explore all available options.

Whether you choose community solar, rooftop installation, or simply a cleaner electricity supplier, every step toward renewable energy helps Illinois achieve its clean energy goals while potentially saving you money along the way.