Wisconsin Solar Incentives

Solar Tax Credits and Rebates are Some of the Best in the Country
Solar energy delivers positive environmental impacts, contributes to our nation’s energy independence, and provides more jobs than the coal or upstream oil & gas sectors in the United States. To encourage the continued expansion of solar, governments, utilities and other organizations offer solar tax breaks and financial incentives to make solar more accessible for today’s homeowners and businesses. As a result, you can reduce the net cost of your solar panel system by anywhere from 30 to 40 percent.

Investment Tax Credit For Solar
The federal government provides a solar tax credit, known as the investment tax credit (ITC), that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. Both homeowners and businesses qualify for a federal tax credit equal to 30 percent of the cost of their solar panel system minus any cash rebates. Learn more about the Residential tax credit and Commercial tax credit including the timeline for the eventual end of the ITC in 2022.

Focus on Energy Renewable Rewards
If you’re installing a solar energy system on your home in Wisconsin, you’re likely eligible for a rebate from Focus on Energy. Regardless of the size of your solar panel system and total project costs, you can get a flat $500 rebate to help decrease the permitting and interconnection costs associated with installing your solar panel system. Be sure to check the Focus on Energy website to see if your utility participates in their programs.

Solar Tax Incentives
Solar is a worthwhile investment, but knowing where you can reduce your costs is important to improving your rate of return. For residents of Wisconsin, there are multiple tax incentives to help you maximize your savings: the sales tax incentive, which exempts you from paying sales tax on your solar equipment, and the property tax incentive, which exempts you from paying property taxes on any additional value solar adds to your home. Small savings can add up!

Wisconsin Net Metering
When you install a solar energy system, you don’t need to include a battery to be certain that you’ll have electricity when you need it. Thanks to net metering in Wisconsin, you can send your extra solar energy back to the grid in exchange for credits on your utility bill. When you need more electricity than your panels are generating, those credits can make up the difference for you. Xcel Energy offers the top utility net metering program in Wisconsin.

Solar Access Rights
To be sure that you’re getting maximum value from your solar panels, you have to have access to their power source: the sun! Wisconsin solar access rights grant homeowners the right to have unrestricted access to the sun, so when you install solar panels, you can rest assured that your neighbors won’t be able to do anything that obstruct your source of solar energy. Plus, if you live in an area with a homeowners’ association, your HOA can’t stop you from going solar.

Accelerated Depreciation
Thanks to accelerated depreciation, businesses can write off the value of their solar energy system through the Modified Accelerated Cost Recovery System (MACRS), which reduces businesses’ tax burden and accelerates returns on solar investments. Qualified solar energy equipment is eligible for a cost recovery period of five years. Accelerated depreciation can reduce net system cost by an additional 30 percent.