Wisconsin may not have the highest sunshine levels compared to other states, but it offers solar incentives that can make installing a system an attractive choice. The state has sales and property tax exemptions, a utility-based direct rebate, and homeowners can claim the federal solar tax credit, which offers savings worth thousands of dollars on your solar investment.
Wisconsin is also home to some of the best solar companies, which can help you apply for available incentives in your area. Let’s take a look at the state’s incentives, including eligibility conditions and potential savings.
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Available Solar Tax Credits and Rebates in Wisconsin
Wisconsin homeowners can benefit from local, state, and federal solar incentives. Here are the top Wisconsin solar incentives:
Focus on Energy Renewable Rewards
Focus on Energy is funded by Wisconsin’s investor-owned energy utilities. Its Renewable Rewards program offers financial rebates to offset solar installation costs regardless of your system size or total cost. Homeowners can receive up to $300, and customers in some ZIP codes may receive an additional $300. Commercial property owners who install solar panels on multifamily buildings may be able to get up to $25,000.
Solar Access Rights
Homeowners associations (HOAs) may sometimes try to block solar panel installation. Wisconsin’s solar access rights laws prevent this interference, granting homeowners unrestricted access to the sun. Your neighbors also can’t do anything that inhibits your panels’ ability to absorb solar energy.
Tax Exemptions
Wisconsin residents don’t have to pay any sales tax on their solar projects. That means you won’t have to pay the 5% state sales tax like you would when purchasing other home systems.
The state also has a property tax exemption, so you won’t have to pay additional taxes even though solar panels increase home value.
How Does the Federal Solar Tax Credit Work?
All Wisconsin homeowners who own a solar system can take advantage of the Investment Tax Credit (ITC), a federal program. This credit allows you to claim 30% of your solar installation costs on your income taxes. Qualifying expenses include the following:
- Balance-of-system equipment, such as wiring, inverters, and mounting equipment
- Contractor labor costs
- Energy storage devices
- Sales taxes on eligible expenses
- Solar panels
Only residents who own a system outright can claim the federal solar tax credit. Those who acquire solar panels through a lease or power purchase agreement (PPA) won’t qualify because the installer maintains system ownership. The availability of tax incentives is one reason why it’s important to choose your solar financing option wisely.
Is Net Metering Available in Wisconsin?
Net metering programs allow solar owners to send excess solar energy to the local power grid in exchange for credits on their electricity bills. In Wisconsin, net metering is available to customers of investor-owned and municipal utility companies. Customers should check with their utility company for further details and restrictions.
Do People Take Advantage of Solar Incentives?
- Of our 1,000 surveyed solar buyers, 64% used the federal tax credit and 32% enrolled in a net metering program. Roughly 30% participated in a local rebate program.
How Much Do Solar Panels Cost in Wisconsin?
We ran some numbers using data from our 2025 survey of 1,000 solar system owners and found the average cost of going solar in Wisconsin is $1,207 per panel. For a typical home solar system with 15 panels, this would mean an average system cost of about $18,100. This cost can come down by nearly a third when you apply the federal solar tax credit.
Is Going Solar in Wisconsin Worth It?
Yes, going solar is worth it in Wisconsin, based on our review. Converting to renewable energy lowers your utility bills, and the state has plenty of solar incentives to reduce your installation costs and help you save sooner. Plus, going solar has other benefits, such as reducing your carbon footprint and boosting your property value.
Our Conclusion
The solar incentives in this article can save you thousands of dollars on a solar power system. Many Wisconsin cities and townships also offer other solar incentives not mentioned above. You should check with your local municipality for additional money-saving opportunities.
Check out our guide to solar companies in Wisconsin for more information.
FAQs About Solar Tax Incentives in Wisconsin
Does Wisconsin offer a solar tax credit?
Wisconsin doesn’t offer a state-specific solar tax credit. However, Wisconsin homeowners who own their systems can qualify for the federal solar tax credit, which allows you to claim 30% of your upfront cost on your federal income taxes.
How much does solar cost in Wisconsin?
The average cost of solar in Wisconsin is $1,207 per panel, according to data from our 2025 survey of 1,000 solar system owners. This means a 6 kilowatt (kW) system may cost around $18,100 before any incentives apply.
What is the solar stimulus program in Wisconsin?
Focus on Energy’s Renewable Rewards solar program offers financial rebates to offset solar panel installation costs. Residential customers can receive up to $300. Customers in some ZIP codes can get an additional $300.
How long does it take for solar panels to pay for themselves in Wisconsin?
Based on the state’s average monthly electric bill of $112, the typical home solar energy system will take roughly 12 years to pay off. A system can last 30 years or longer, so you’ll have plenty of years to enjoy a return on your investment. However, you’ll start enjoying a clean energy source on day one.
