Are Solar Panels Worth It in Wisconsin?

6 factors to consider before getting solar panels in Wisconsin

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including several from Wisconsin. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. Wisconsin solar incentives

4. How you pay

5. How long you stay in your house

6. The solar company you hire

1. Solar panel installation costs

Average solar panel costs in Wisconsin are comparable to the national average. Before considering any incentives, an 8-kilowatt (kW) solar panel system costs $24,480 in Wisconsin.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Wisconsin, the average cost per watt is $3.06.

Average solar panel costs by system size in Wisconsin

2. Your current energy consumption

A typical Wisconsin household needs a system with the capacity of 13.42 kW (kilowatt) to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.

You get the most out of solar if your appliances are electric. Solar panels will save you even more if you also have an electric vehicle. (This may seem obvious, but solar panels generate electricity. They don’t help save on gas bills.)

3. Wisconsin solar incentives

The 30% residential federal solar tax credit has expired, but still Wisconsin has a few programs that can make solar more affordable:

• Focus on Energy: Eligible homeowners can get $600 per kW, up to $2,400, for a qualifying solar system.

• Tax breaks: Qualifying solar equipment is exempt from state sales tax, and adding solar generally won’t raise your property taxes.

• Milwaukee Shines: Milwaukee homeowners may qualify for low-interest solar loans of up to $25,000.

What to know about net metering in Wisconsin

Net metering lets homeowners with solar panels sell any excess electricity they generate to the local power grid. Wisconsin doesn’t have one statewide rate for the extra solar power you send to the grid. What you get back depends on your utility.

Some utilities offer credits close to the retail electricity rate, while others pay much less. That means your utility’s policy can make a big difference in how much you save with solar.

Pro tip

You might be better off storing excess energy in a battery instead of participating in net metering. The biggest downside is that solar storage batteries are expensive: $7,000 to $18,000.

» EXPLORE: Wisconsin solar incentives

4. How you pay

Given rising energy costs in Wisconsin and elsewhere, financing or leasing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway. Solar panels essentially generate free electricity once the initial installation costs are paid for.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years..

Monthly costs: solar payments vs. savings

Compare your expected solar payment and remaining utility bill with what you pay for electricity now. Also consider interest, fees and total loan costs.

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 8.8 years on average in Wisconsin. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A 2019 study found that, on average, houses with solar panels sell for 4.1% more. Though, we don’t recommend getting solar panels just because you want to sell your house soon.

If you plan to move soon, consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

6. The solar company you hire

One of the most common solar company complaints we hear is related to pushy sales reps who make promises that can’t be delivered. Solar scammers in Wisconsin are known to employ various deceptive tactics, including offers of free solar panels, misleading advertisements, inflated pricing, unsolicited proposals, requests for personal information and telemarketing schemes.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use the National Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery. 

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. However, renters and condo owners may have less control over whether solar can be installed on the building.

Here’s what else to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Wisconsin averages 3 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

• What is the size and angle of my roof? Wisconsin (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.

• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Wisconsin

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in Wisconsin

• Cheaper energy bills: The average homeowner in Wisconsin uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
• Higher home resale value: Installing solar panels can significantly increase a home's value. According to the above study, homes with solar panels sell for 4.1% more on average. That’s about $16,400 more on a $400,000 house.
• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

Drawbacks of solar panels in Wisconsin

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in Wisconsin. That way, you can store energy at home instead of tapping into the local grid when you need to.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Wisconsin

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Wisconsin’s top solar companies to learn more.

Wisconsin solar FAQ

Bottom line: Is going solar in Wisconsin worth it for you?

Going solar in Wisconsin might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Wisconsin and nearby states