Solar Incentives & Tax Benefits for Businesses
Maximize Your Solar Investment with Federal & State Incentives
Going solar is more than just an energy upgrade—it’s a smart financial decision. Businesses in Illinois and across the Midwest can take advantage of generous tax credits, grants, and financial incentives to significantly reduce costs and increase ROI.
At Midwest Solar Incentives, we specialize in helping business owners navigate these programs to maximize savings and reduce upfront costs.
- Save up to 75% on your energy bills
- Claim up to 30% in federal tax credits
- Receive grants covering up to 50% of installation costs
- Earn cash from Solar Renewable Energy Credits (SRECs)
1. Earn cash from Solar Renewable Energy Credits (SRECs)
Get Paid for the Solar Energy You Produce
The Illinois Adjustable Block Program (Illinois Shines) allows businesses to sell Renewable Energy Credits (SRECs) for up to 15 years. These payments from utility companies provide a steady revenue stream, helping you recover costs faster.
Who Qualifies?
- Businesses installing new solar photovoltaic (PV) systems
- Projects located in Illinois
Key Benefit:
- Earn passive income from selling SRECs
- Lower overall system cost
2. Federal Investment Tax Credit (ITC) – 30% Tax Credit
Reduce Your Tax Liability & Installation Costs
The Federal Investment Tax Credit (ITC) allows businesses to deduct 30% of solar installation costs from their federal tax bill. This significantly reduces the upfront cost of going solar.
How It Works:
- Businesses installing solar in 2024 and beyond can claim 30% of total system costs
- Tax credit applies after state rebates & incentives
Key Benefit:
- Immediate reduction in tax burden
- Works alongside other incentives
3. Net Metering – Save on Energy Bills
Use Your Solar Energy When You Need It Most
Net metering allows businesses to receive credits on their utility bill for excess solar power generated. These credits can be used when solar production is low (e.g., at night or on cloudy days).
How It Works:
- Your solar system sends excess power to the grid
- You earn energy credits to offset future electricity use
- Some businesses eliminate nearly 100% of their energy costs
Key Benefit:
- Turn excess energy into savings
- Protect against rising energy rates
4. MACRS Depreciation – 5-Year Accelerated Depreciation
Fast-Track Your Return on Investment
Businesses investing in solar can utilize Modified Accelerated Cost Recovery System (MACRS) depreciation to deduct 85% of system costs over a 5-year period.
How It Works:
- Deduct 85% of system costs from taxable income
- Reduce overall tax burden significantly
- Works alongside ITC & bonus depreciati
Key Benefit:
- Lowers taxable income
- Shortens solar system payback period
5. Bonus Depreciation – Extra First-Year Tax Savings
Maximize Your First-Year Deduction
On top of MACRS depreciation, businesses may qualify for bonus depreciation, which allows for a larger deduction in the first year of service.
Example Bonus Depreciation Rates:
- 2024: 60% bonus depreciation
- 2025: 40% bonus depreciation
Key Benefit:
- Maximizes first-year tax savings
- Accelerates financial return on investment
6. USDA REAP Grant – Up to $1M in Funding for Rural Businesses
Government Grants for Agricultural & Rural Businesses
The USDA Rural Energy for America Program (REAP) provides grants covering up to 25% of total solar project costs for eligible rural businesses and farms.
Who Qualifies?
- Businesses in rural areas
- Agricultural producers
Key Benefit:
- Grants covering up to $1M in solar project costs
- Helps businesses reduce financial risk
How to Maximize Your Solar Incentives
Step 1: Free Incentive Assessment
We analyze your eligibility for tax credits, grants, and rebates.
Step 2: Custom Solar Plan
We design a financial strategy to maximize savings and reduce upfront costs.
Step 3: Install & Save
Start seeing energy bill reductions and financial returns immediately.
Many businesses see payback periods of just 1.5 to 5 years, followed by decades of free power!