Solar Tax Credits, Incentives, and Homeowners in Illinois
On July 7, 2025, President Trump signed a major executive order targeting solar and wind energy incentives, potentially disrupting how homeowners and clean energy companies benefit from federal support.
If you’re an Illinois homeowner considering solar, this update could impact the solar tax credit landscape in 2025—but local energy solutions like Sun Collectors believe solar is still a powerful way to save and take control of your utility bills.
What the Executive Order Does
The executive order—titled “Ending Market-Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources”—directs multiple federal agencies to scale back support for clean energy projects that rely on foreign suppliers.
Key actions include:
- Reviewing and ending solar tax credits under the Inflation Reduction Act:
- 45Y Clean Electricity Production Credit
- 48E Clean Investment Tax Credit
- Cracking down on projects with links to foreign entities (especially China)
- Removing policy preferences for solar and wind on federal land or permitting
View the full executive order on WhiteHouse.gov ›
How This Affects Solar Energy in 2025
This order introduces uncertainty for large-scale renewable developers, and solar company stocks dropped sharply after the announcement. However, the impact on residential solar in Illinois may be very different.
Homeowners should keep in mind:
- The 45-day review period is still active: No immediate cancellation of homeowner-level credits yet.
- Distributed, local solar systems are not the target: The focus is on utility-scale, foreign-linked projects.
- Now may be the best time to act: Lock in current federal and Illinois solar incentives before potential changes take hold.
What It Means for Illinois Homeowners
If you’ve been thinking about installing solar panels on your home, this executive order makes the case even stronger. Producing your own energy locally is a hedge against both volatile utility rates and unpredictable federal policy.
Benefits of going solar NOW:
- Lower monthly electric bills
- Protection from Ameren rate hikes
- Increased home value
- Possible access to current solar tax credits (while they last)
See how much you can save with solar:
Get a free solar consultation with Sun Collectors
Why Sun Collectors Believes in Energy Freedom
Sun Collectors is a Central Illinois-based solar company that believes in putting power back in the hands of homeowners, not politicians or out-of-state utilities.
Even as Washington shifts course, local solar energy remains a reliable, cost-effective solution. We’re here to help you navigate changing policies and maximize your savings before any incentives disappear.
Take Action Before It’s Too Late
With federal policy changes underway, there’s never been a more important time to understand your options and take control of your energy future.