Wisconsin Solar Incentives, Tax Credits & Rebates (2024 Guide)
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Don’t let Wisconsin’s long winters discourage you from going solar. Solar panels still work well in cold weather, and the state offers several solar incentives to make the switch more affordable.
We reviewed the best solar companies in the country and learned which states offer the best financial incentives for going solar. See which programs Wisconsin residents qualify for below.
What Are the Solar Tax Credits and Rebates Wisconsin Offers?
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 $500, and customers in some ZIP codes may receive an additional $500. Commercial property owners who install solar panels on multifamily buildings may be able to get up to $50,000.
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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.
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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.
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How Does the Federal Solar Tax Credit Work?
All Wisconsin homeowners who own their system can take advantage of the federal investment tax credit (ITC). 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 those who own their system are eligible. Those who acquire solar panels through a lease or power purchase agreement (PPA) don’t qualify, so 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?
Wisconsin’s average solar panel system cost is $14,195–$19,205.* That’s below the national average of $20,650. These figures are before factoring in any solar rebates or incentives. Applying the federal tax credit reduces this price range to $9,936–$13,443.
*Prices according to EnergySage.
Is Going Solar in Wisconsin Worth It?
Yes, going solar in Wisconsin is worth it. Energy costs are rising nationally, and Wisconsin saw a year-over-year jump in electricity rates in the first half of 2023. 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.
We recommend Green Home Systems if you’re ready to transition to solar. Check out our guide to solar companies in Wisconsin for more information.
FAQ 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 can qualify for the federal solar tax credit, which allows you to claim 30% of your system cost on your federal income taxes.
How much does solar cost in Wisconsin?
The average solar panel system costs $14,195–$19,205 in Wisconsin. That’s below the national average of $20,650. Using solar incentives lowers this price.
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 $500. Customers in some ZIP codes can get an additional $500.
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.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
