Based on reporting from the Chicago Tribune.
The repeal of federal solar tax incentives by President Trump’s “One Big Beautiful Bill” has triggered a year-end surge in rooftop solar installations across Illinois. ISACo is carefully monitoring how these developments may impact local renewable energy markets and county-level siting considerations.
Illinois solar companies are racing to complete hundreds of rooftop projects before the end of the year, following the repeal of a key federal tax credit for residential solar installations. The repeal, part of President Donald Trump’s recently enacted “One Big Beautiful Bill,” ends an incentive worth about $8,000 per household. According to Chicago Tribune reporting, the move has spurred a last-minute rush in sales — but solar companies expect a sharp decline in business beginning in 2026.
Chicago-based solar installer RxSun, which has already surpassed 500 residential sales this year, stopped taking new orders in August to ensure projects could be completed before the deadline. “Since July, there’s been a lot of sleepless nights wondering where we are going to end up,” said RxSun founder Chris Gersch, who anticipates a 50% to 70% drop in sales next year. Other companies, including Windfree Solar and Ailey Solar, report similar patterns, noting that while the near-term demand surge is intense, the long-term outlook is uncertain.
Company leaders warn the repeal will lead to widespread job losses and consolidation in the residential solar market. Some installers are exploring alternative business models — such as leasing arrangements or power purchase agreements — that would allow companies to retain ownership of solar panels and claim remaining commercial tax credits. However, many customers remain reluctant to give up ownership, limiting the viability of those options.
Industry experts credit past federal incentives, combined with Illinois’ Climate and Equitable Jobs Act (CEJA) and the Illinois Shines program, for driving strong solar growth in recent years. Windfree Solar founder Doug Snower said these overlapping incentives created “a perfect alignment of savings” for customers but warned that the repeal could push consumers back toward fossil fuels. “Why of all things are they taking those away so people are more incentivized to go back to fossil fuels?” Snower said.
Despite federal headwinds, Illinois continues to pursue aggressive renewable energy goals. Governor JB Pritzker recently joined state and industry leaders in celebrating the opening of the Highway 20 Community Solar Farm in Kane County, which will power about 600 low-income households and local institutions. Environmental advocates are also urging lawmakers to pass the Clean and Reliable Grid Affordability Act, a proposal to strengthen Illinois’ electricity grid and support future renewable energy expansion.
Under CEJA, Illinois aims to reach 40% renewable energy by 2030 and 100% carbon-free electricity by 2045. While residential solar sales may decline, commercial solar development remains strong, driven by rising electricity demand from data centers, electric vehicles, and large-scale facilities. As Illinois’ energy landscape evolves, ISACo continues to closely monitor renewable energy policy and its implications for county government planning and local siting authority.