By Aliya Bagewadi
The Illinois Solar for All (ILSFA) program offers multifamily building owners an invaluable chance to install solar affordably, while directly benefiting their tenants. As solar energy becomes a more popular feature in multifamily properties, this program makes it financially feasible, particularly for properties in underserved communities.
By stacking these incentives with specialized sub-programs like the Low-Income Multifamily Solar Program and the Bright Neighborhoods Initiative, ILSFA makes it possible for landlords to fully fund shared rooftop solar projects - drastically reducing tenants' energy bills.
This article dives into how these incentives work, eligibility, and how Allume’s SolShare technology can unlock funding by over 100% for some properties, including:
| 1. Understanding the Solar for All funding in Illinois |
| 2. Financial analysis - costing breakdown |
| 3. How shared solar unlocks full finding |
| 4. Benefits to landlords & renters |
| 5. Get started |
The ILSFA program is designed to extend the benefits of clean energy to low-income and disadvantaged communities in Illinois.
It does this by issuing Solar Renewable Energy Credits (SRECs) for each megawatt-hour (MWh) of solar energy produced (1 MWh equals 1,000 kWh). Utilities purchase these credits, giving building owners substantial financial support to reduce solar installation costs.
To help you quantify this; a two-bedroom apartment typically consumes between 600 and 800 kWh per month. A 20 kW solar system can produce about 24 to 28 MWh per year, enough to offset the annual electricity usage for around three to four two-bedroom apartments, depending on usage and location.
These credits are paid upfront to the landlord and roughly cover 50% of the cost for a multifamily building (see financial modeling below for more details).
Under the ILSFA Low-Income Multifamily Solar Program, building owners must ensure that at least 50% of the solar benefits go directly to tenants.
This article will focus on SREC pricing in Group B, which is ComEd territory and is designed to benefit lower-income households.
Essentially, smaller systems (relevant to most low-income multifamily buildings in Illinois) generate a higher price per SREC:
Source: Illinois Solar for All
Additionally, building owners can take advantage of the Federal Investment Tax Credit (ITC), which provides a 30% credit on system costs. For projects in qualifying communities – which includes all of Chicago and most of Northern Illinois – an additional 10% ITC adder is available (Energy Community Tax Credit).
The Bright Neighborhoods Initiative is another ILSFA sub-program that targets designated areas in Illinois, such as Chicago’s West Side, Waukegan, and the Carbondale-Marion region. This initiative simplifies solar adoption by consolidating vendor interactions and application steps, providing a single point of contact for building owners. With no upfront costs, it is particularly beneficial for smaller multifamily properties in underserved neighborhoods to help them modernize with sustainable energy options.
By combining these incentives, multifamily building owners may be able to more than 100% fund the cost of a solar system. See financial modelling below.
For a multifamily building owner considering the Illinois Solar for All (ILSFA) program, here’s a cost breakdown example for a 20 kW solar system based on a high-end price of $3.50 per watt*:
This scenario illustrates how the combination of ILSFA, federal tax credits, and utility rebates can make solar installations both financially viable and impactful for multifamily buildings in Illinois.
*It is important to note that these figures are primarily intended to illustrate the program's capacity to cover the system's total cost. Incentives may be calibrated to offset the installation expenses without generating additional income. This ensures that solar adoption remains accessible and equitable for building owners in low-income or underserved areas.
SolShare units at a multifamily building in Rosemont, Orlando
A unique requirement of the ILSFA Low-Income Multifamily Solar Program is that at least 50% of the solar benefits must go directly to tenants. While solutions like gift certificates have been attempted, they lack scalability.
Allume’s SolShare technology provides a comprehensive, data-driven solution that monitors the exact amount of solar energy delivered to each unit, ensuring compliance and simplifying access to SREC payments. This makes it easy for building owners to take full advantage of program incentives.
Going solar through ILSFA or Bright Neighborhoods is more than just a way to reduce utility bills—it’s an investment that adds value to properties and enhances tenant satisfaction.
Image: Daren, tenant in a multifamily building in Mississippi who is benefitting from clean, affordable energy thanks to SolShare.
Whether through the broad benefits of the ILSFA Multifamily Solar Program or the streamlined access of the Bright Neighborhoods Initiative, Illinois Solar for All offers unprecedented opportunities for building owners.
With Allume’s SolShare technology, owners can meet compliance, monitor energy distribution, and tap into funding streams to make solar installations financially viable and beneficial for everyone involved.
If you're ready to explore how you can use solar incentives with our solar-sharing technology, reach out to us at info@allumeenergy.com or use the form below to provide a few details.