The solar incenvice in Wisconsin 2024

Updated Dec 29, 2024

You'll pay an average of $12,567 to install a 5 kilowatt solar panel system in Wisconsin, before incentives.
The federal investment tax credit (ITC) lowers that price by 30% of all your solar equipment and installation costs.

What solar incentives are available in Wisconsin?

As a homeowner in Wisconsin, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.

Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.

Federal Investment Tax Credit

The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.

The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.

Who is eligible for the Federal ITC?

Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:

Your solar system must have been installed between January 1, 2017 and December 31, 2034.

You must own the property on which the system was installed. That means no leased properties such as apartments or townhomes.

The property must be located within the U.S

You must own the entire solar system. Equipment acquired through a lease or Power Purchase Agree (PPA) is not eligible.

The equipment must be purchased new. Used equipment is not eligible.

The Federal ITC will also cover the following expenses:

Solar panels and cells

Wiring, inverters, and mounting equipment

Cost of labor

Energy storage devices

Sales tax

Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.

Local solar incentives

Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government

How to apply : Permitting Rules In September 2009, the Governor of Wisconsin signed S.B. 185 (Act 40) directing the Wisconsin Public Service Commission (PSC) to establish statewide wind energy siting rules. PSC Docket 1-AC-231 was created to conduct the rulemaking, requiring the PSC to convene an advisory council composed of various interested stakeholders (e.g. developers, political subdivisions, environmental groups, landowners, etc.). In December 2010, the Commission adopted the wind siting rules (PSC 128). The rules were scheduled to take effect on March 1, 2011, but on that date, the Joint Committee for the Review of Administrative Rules voted to suspend the rules. The legislature proposed several changes to the rule, but could not enact a replacement, and the PSC 128 wind siting rules became effective in March 2012. The rules are comprehensive and include notice requirements, siting and noise criteria, shadow flicker, stray voltage, construction, operation, and decommissioning. Separate rules apply to small wind systems with a collective capacity of 300 kW or less or an individual wind turbine with a capacity of 100 kW or less. The rules apply to political subdivisions (city, town, village, county) regulation of wind energy systems up to 100 MW in size. Political subdivisions can choose whether or not to regulate wind energy systems; if they choose to regulate, they may not do so in a way that is more restrictive than the PSC's rules. Wind energy systems 100 MW in size or greater are under the siting jurisdiction of the PSC, and are not directly subject to these rules. Large Wind Systems Rules for systems of larger than 300 kW or individual turbines larger than 100 kW include the following: An owner must provide written notice of a planned wind system to specific parties at least 90 days before filing an application. Systems must be set back 1.1 times the maximum blade tip height. Systems near occupied community buildings or nonparticipating residences must be set back either 1,250 feet or 3.1 times the maximum blade tip height, whichever is less. Systems should be operated so that noise does not exceed 50 dBA during daytime hours or 45 dBA during nighttime hours. Small Wind Systems Rules for systems of 300 kW or less, or individual systems 100 kW or less, include the following: An owner must provide written notice of a planned system wind system to specific parties at least 60 days before filing an application. Systems must be set back the distance of the maximum blade tip height. Systems should be operated so that noise does not exceed 50 dBA during daytime hours or 45 dBA during nighttime hours.

Who’s eligible : Commercial, Industrial, Residential

How to apply : Wisconsin has two sales tax exemptions that apply to renewable energy. Legislation enacted in 1979 exempts wood sold as a fuel for residential use from the state sales and use tax (Wis. Stat. § 77.54(30)). Residential use means use in a structure or portion of a structure which is the person's permanent residence. A clause was added in 2007 expanding the exemption to include sales of all biomass -- as defined in Wis. Stat. § 196.378 (1) (ar) -- used as fuel for residential use. This definition includes wood, energy crops, biological wastes, biomass residues, and landfill gas. The original Wis. Stat. § 77.54(30) was also amended in 1987 to exempt the sale of qualifying biomass residues used as fuel for business activity from the state sales and use tax gross receipts. Qualifying residues are defined as arising from the "harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or primarily from wood residue." Separately, legislation was enacted in 2007 (Wis. Stat. § 77.54(56)) to exempt products whose power source is wind, solar radiation, or gas produced from the digestion of animal manure and other agricultural wastes from the sales and use tax, effective July 2009. However, in 2009 this section of code was amended (2009 Act 28) to delay the effective date of the exemption until July 1, 2011. In order to be considered an eligible product, devices must be capable of producing at least 200 watts of alternating current or 600 British thermal units per day. The exemption under does not apply to un-interruptible power sources that are designed primarily for computers. The law also exempts "receipts from the sale of and the storage, use, or other consumption of electricity or energy" produced by a qualifying system. The Department of Revenue adopted an Emergency Rule in June 2011 to clarify the definition of "product." These rules were replaced with final rules (Tax 11.10) in August 2012. The rule reiterates that for the purposes of the exemption, "product" means "tangible personal property that converts wind energy, direct radiant energy received from the sun, or gas generated from the aerobic digestion of animal manure and other agricultural waste into alternating current electricity or heat." This does not include items that store the energy or consume electricity or heat, a foundation built for the system, items used to "convey, transfer, or alter" the generated electricity or heat, or items used to transfer or store liquids or gases used in energy generation. Certain exceptions apply; consult the rule for further details, or contact the Department of Revenue. Generally, purchasers must complete Form S-211, Sales and Use Tax Exemption Certificate and provide the completed form to the seller in order to claim the sales tax exemption. Questions should be directed to the Wisconsin Department of Revenue.

Who’s eligible : Commercial, Industrial, Residential, Agricultural, Multifamily Residential

How to apply : In Wisconsin, any value added by a biogas, or synthetic gas energy system, solar-energy system, or a wind-energy system is exempt from general property taxes. The exemption applies regardless of whether the equipment is deemed real property or personal property. A fact sheet on this exemption is available: https://www.revenue.wi.gov/DORFAQ/renewable-energy.pdf A link to the request form for this exemption is available: https://www.revenue.wi.gov/DORForms/pr-303.pdf Eligible Technologies A solar-energy system is defined as "equipment which directly converts and then transfers or stores solar energy into usable forms of thermal or electrical energy, but does not include equipment or components that would be present as part of a conventional energy system or a system that operates without mechanical means." Passive solar design elements do not qualify under these rules. A wind-energy system is defined as "equipment which converts and then transfers or stores energy from the wind into usable forms of energy, but does not include equipment or components that would be present as part of a conventional energy system." Biogas or synthetic gas energy systems are defined as "equipment which directly converts organic material (other than oil, natural gas and coal products) into biogas or synthetic gas, equipment which generates electricity, heat, or compressed natural gas exclusively from biogas or synthetic gas, equipment used exclusively for direct transfer or storage of biomass, biogas or synthetic gas or any structure or portion of a structure used exclusively to shelter or operate the mentioned equipment." The tax code also notes that, "Until the tax incremental district terminates, the exemption under this subsection for biogas or synthetic gas energy systems does not apply to property in existence on January 1, 2014, and located in a tax incremental financing district in effect on January 1, 2014." Applying for the Exemption In order to qualify for the exemption, property owners must file a request for the exemption with their local assessor by March 1st following the January 1st assessment date for which the exemption is claimed.

Does Wisconsin offer tax exemptions?

Solar/Wind Permitting Standards

Sales Tax Incentive

Property Tax Incentive

Rebate Program

Grant Program

Interconnection

Energy Standards for Public Buildings

Net Metering

PACE Financing

Renewables Portfolio Standard

Solar/Wind Access Policy

Leasing Program

Performance-Based Incentive

Building Energy Code

Loan Program

Green Power Purchasing

Public Benefits Fund

Industry Recruitment/Support

Solar/Wind Contractor Licensing

Energy Efficiency Resource Standard

Cash payments

Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.

Pros

No interest payments makes this less expensive in the long term

It provides a higher return on your investment

You hit your break even point faster

You are eligible for tax incentives

Cons

It requires a large initial investment

There is an opportunity cost if you decide to wait and save

You may become cash poor

Financing

Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.

Pros

It doesn’t require a large lump sum

You can space your payments out over time

You are eligible for tax incentives

Cons

It costs more over time

Interest rates may be high

You need good credit

The payback period is longer

It takes longer to break even

Solar leases and PPA agreements

If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.

Pros

There is no upfront cost

You are not responsible for maintenance

Contract terms are flexible

Cons

You do not own your solar system

You will not be eligible for tax credits or exemptions

It is a long term commitment

You save less than if you own the system

Rates may increase

Going solar doesn’t have to break the bank

Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Wisconsin, you can save thousands more on your investment.

Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.

Learn more about solar

Check out some of our latest blog posts below.

The solar incenvice in Wisconsin 2024

What solar incentives are available in Wisconsin?

Federal solar incentives

Federal Investment Tax Credit

Who is eligible for the Federal ITC?

The Federal ITC will also cover the following expenses:

How to claim the Federal ITC

Local solar incentives

Can you claim multiple tax incentives in Wisconsin?

Does Wisconsin offer tax exemptions?

Solar/Wind Permitting Standards

Sales Tax Incentive

Property Tax Incentive

Rebate Program

Grant Program

Interconnection

Energy Standards for Public Buildings

Net Metering

PACE Financing

Renewables Portfolio Standard

Solar/Wind Access Policy

Leasing Program

Performance-Based Incentive

Building Energy Code

Loan Program

Green Power Purchasing

Public Benefits Fund

Industry Recruitment/Support

Solar/Wind Contractor Licensing

Energy Efficiency Resource Standard

What is the best way to pay for solar?

Cash payments

Pros

Cons

Financing

Pros

Cons

Solar leases and PPA agreements

Pros

Cons

Going solar doesn’t have to break the bank

Learn more about solar

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The Future of Solar Energy: How to Recycle Solar Panels