If you buy the system, you own it. On a lease or a PPA, you do not. The system is owned by the solar company, not the homeowner, even though it sits on your roof. A PPA is a power purchase agreement. You pay a set price per kWh for the power the system makes. A kWh is the unit your power bill counts.
Illinois Shines is a state program that provides an incentive for solar projects. See how Illinois Shines works. For a home system in Illinois Shines, its contract rules list what a PPA has to spell out. That covers the price, any yearly increase, a buyout, a sale of the home and any fee to end early.
Who owns the system: you or the solar company?
In Illinois, the most common ways to put solar on a home are buying the system, leasing it, or signing a PPA. Who owns the system is the first thing that sets them apart.
| Question | Buy | Lease | PPA |
|---|---|---|---|
| Who owns it | You | The solar company | The solar company |
| What you pay for | The system itself | A set amount each month | A set price per kWh |
| Tax benefits for you | Home credit ended after 2025 | None | None |
When you buy, the system is yours. Your purchase contract must say when the system becomes yours.
On a lease or a PPA, the company keeps the system and you host it. The Illinois Shines rules for PPAs call you the host. Because the company owns the system, a PPA contract must say who insures the system, and who carries the loss if it is damaged.
The seller must also explain the type of agreement and how long it lasts. Ask which one you are signing, and for how long. A lease and a PPA both leave the company as the owner, but they charge you in different ways.
How does a PPA charge you for power?
A PPA charges by the kWh. You pay a set price per kWh for the power the system makes. So what you pay depends on how much power the panels make. A month with more sun brings a bigger charge than a gray one.
A lease works another way. You pay a set amount each month, based on how much power the system is expected to make. The amount does not follow each month's sun the way a PPA charge does.
On the PPA offers this site shows, your system has no upfront costs, but you pay every month for the power it makes, at the rate in your contract. That charge comes from your solar provider, not your utility bill.
Your utility bill keeps coming too. With solar, you stay a utility customer, responsible for a utility bill. Power your panels send to the grid earns net metering credit: a credit that appears on your electric bill. So you get two bills: one from the solar company for the power, and one from your utility.
Our guide to net metering in Ameren Illinois explains what that credit covers. The guide on whether you still get a utility bill shows what stays on it.
Can the PPA price go up each year?
It can, if your contract says so. Some PPAs include an escalation clause. That is a term that raises the price over time.
The Illinois Shines contract rules say a PPA must state the price, and any yearly increase. The Illinois Shines FAQ for homeowners tells you to ask about the price per kWh, and whether an escalation clause raises what you pay over time, and by how much. Get the answer in writing.
You should see the same terms in three places: what the seller shows you, the Disclosure Form, and the contract. You sign the Disclosure Form before the contract. And under the Illinois Power Agency's marketing rules, any increase shown in marketing must match the Disclosure Form and your contract.
If a quote, the Disclosure Form and the contract show different increases, stop and ask why before you sign. The Disclosure Form is the standard sheet that lays out your offer in plain terms. See the Disclosure Form and your right to cancel.
Can you buy the system or end the PPA early?
You can buy a PPA system only if the contract gives you that right. A PPA contract must say whether you can buy the system, and on what terms. The rule covers both cases: buying before the term ends, and buying when it ends.
Check the end of the term too. The contract must say whether the system comes off your roof when the contract ends, and any removal fee. It must also say whether the PPA renews when its term ends, and on what terms. Read those lines with the buyout terms. Together they tell you your choices when the PPA is over.
Ending the PPA before its term is up is a different matter. The contract must list any early termination fee. Find that line, and how many years the PPA runs, before you sign.
Do not mix this up with the right to cancel. Right after you sign, Illinois Shines contracts give you three or more calendar days to cancel, for systems of 25 kW or less. An early termination fee is about ending the PPA later, once that window has closed. See the Disclosure Form and your right to cancel.
What happens if you sell the home, and what is a UCC-1?
A PPA runs for a set term, and you may move before it ends. The contract must say what happens to the PPA if you sell the home, including what it takes to move the PPA to the new owner.
Illinois Shines also warns that you may have to buy out the contract if you move. Read that part of the contract closely. Before you sign, find the steps for moving the PPA to a buyer and the terms for buying it out. See selling a home with solar.
A PPA contract must also state the owner's right to file a UCC-1 statement. A UCC-1 statement is a public filing. The owner can file it to show the system is its property, even though it sits on your home. Ask the company how it handles that filing when you sell.
Who gets the tax benefits?
The owner does. On a lease or a PPA, there are no tax benefits for the homeowner, who does not own the system.
An Illinois Power Agency fact sheet says the federal credit on a PPA is not available to the homeowner on their tax return. Any credit the system owner claims is a business credit under its own federal rules, and your contract sets what you pay.
If you buy the system, the federal credit for home solar, called 25D, is not available for property placed in service after December 31, 2025. See the glossary entry for the plain meaning. See the federal tax credit in 2026.
Under the Illinois Power Agency's marketing rules, any mention of the federal tax credit must be accurate and current. If anyone tells you that you get the federal credit on a PPA, ask them to show you where it says so in writing.
Quick answers
- Who owns the solar panels on a PPA?
- The solar company does. The system sits on your roof, and you pay for the power it makes.
- How does a PPA charge you?
- You pay a set price for each kWh the system makes. On the PPA offers this site shows, your system has no upfront costs, but you pay every month for the power it makes, at the rate in your contract.
- Can a PPA price go up every year?
- It can, if the contract has an escalation clause. The contract must state the price and any yearly increase.
- Can you buy out a solar PPA?
- Only if your contract allows it. The contract must say whether you can buy the system, and on what terms.
- What happens to a PPA if you sell your house?
- Your contract must spell it out, including how the PPA moves to the buyer. You may have to buy out the contract if you move.
- Do you get the tax benefits on a PPA?
- No. You do not own the system, so the tax benefits are not yours.
Sources
- U.S. Department of Energy, Homeowner's Guide to Going Solar. Read Nov 4, 2026.
- Illinois Shines, Consumer FAQs. Read Nov 4, 2026.
- Illinois Shines, Distributed Generation Contract Requirements (April 18, 2024). Read Nov 4, 2026.
- Illinois Power Agency, Consumer Protection Handbook for Illinois Shines and Illinois Solar for All, program year 2026-27. Read Nov 4, 2026.
- Illinois Power Agency, fact sheet on the three kinds of solar credits (September 2025). Read Nov 3, 2026.
- IRS, Residential Clean Energy Credit. Read Nov 3, 2026.