Wisconsin solar incentives, tax credits and rebates
Resources to make solar panels more affordable in 2024
After the full federal solar investment tax credit, the average cost to install a solar power system is $10,850 to $21,700 in Wisconsin. You might also be eligible for additional tax breaks, Focus on Energy rebates or the Milwaukee Shines program.
Here’s everything you need to know about using state and federal solar incentives to make solar affordable in the Badger State.
The federal solar investment tax credit (ITC) is the best financial incentive for most Wisconsin homeowners to buy solar panels.
Jump to insightWisconsin residents can get the retail rate when they sell excess solar power to the local grid through net metering.
Jump to insightOn average, Wisconsin homeowners with solar panels avoid $54,553 in utility costs over 25 years.
Jump to insightSolar tax breaks in Wisconsin
In addition to the federal solar tax credit, residents can take advantage of property and sales tax exemptions.
- Federal solar investment tax credit: The federal solar investment tax credit (ITC) reduces your federal tax liability by 30% of how much it costs to install solar panels. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000. You have to complete Form 5695 in the year your system becomes operational.
- Sales tax exemption: Wisconsin has a 100% sales and use tax exemption for eligible solar equipment. To qualify, devices must produce at least 200 watts of alternating current (AC) per day. To claim it, complete the Wisconsin Sales and Use Tax Exemption Certificate (Form S-211) and give it to your solar vendor. The exemption is available statewide and is not set to expire.
- Property tax exemption: In Wisconsin, there is a property tax exemption for the value added by solar and other renewable energy systems. The incentive exempts the value of these renewable energy systems from general property taxes, regardless of whether the equipment is classified as real or personal property. There is no expiration for this incentive. To claim it, submit an Energy System Exemption Request (Form PR-303) to your local assessor.
What is a property tax exemption?
A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t increase your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase your home's market value.
More solar incentives in Wisconsin
Focus on Energy offers rebates of up to $300 per residential system, and the Milwaukee Shines program funds loans of up to $20,000.
Focus on Energy rebates
Focus on Energy offers rebates for residential and business solar electric (PV) systems. The rebate for residential customers is up to $300 per system, with an additional $300 bonus for rural customers in eligible ZIP codes.
The rebates are available on a first-come, first-served basis while funds last. This incentive is available statewide, but rural residents may qualify for additional bonuses. The program does not have a specified expiration date. To be eligible, you must install a qualifying solar electric system and apply through the program's website.
Milwaukee Shines
The city of Milwaukee’s Milwaukee Shines program provides loans up to $20,000 for residents to invest in solar. The loans have a maximum fixed interest rate of prime plus 0.25%, potentially reaching between 8.75% and 9.25%. The maximum term is 15 years.
Eligible systems include solar electric systems up to 6 kilowatts (kW) and solar hot water systems up to eight panels. The program covers equipment, labor, permits, interconnection fees and related expenses (such as structural reinforcement and re-roofing if part of your solar project). Projects must be installed by a Focus on Energy Residential Ally installer.
Additional solar incentives in Wisconsin
Check DSIRE for the most comprehensive source of information about solar incentives and policies in Wisconsin.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Biogas, Solar, and Wind Energy Equipment Exemption | Property tax exemption | 100% value added by system | Solar water heat, solar space heat, solar thermal electric, solar photovoltaics, solar pool heating | Commercial, industrial,agricultural, residential | Wisconsin Department of Revenue |
| Residential and Commercial Solar Rebate Program | Rebate | $300 per residential system; $300 bonus for qualifying rural ZIP codes; $50 per kW for businesses | Solar photovoltaics | Commercial, residential | Focus on Energy |
| We Energies - Focus-on-Energy Agriculture Rebate Program | Rebate | Up to $50,000 or $300,000 | Solar thermal electric, solar photovoltaics | Agricultural | We Energies |
| Focus on Energy - Business & Marketing Grant | Industry recruitment/support | Up to $10,000 | Solar water heat, solar photovoltaics | Commercial, installers/contractors, integrators | Focus on Energy |
| Renewable Energy Sales Tax Exemptions | Sales tax exemption | 100% exemption on sales and use tax | Solar water heat, solar space heat, solar thermal process heat, solar photovoltaics, solar pool heating | Commercial, industrial, residential | Wisconsin Department of Revenue |
| Commercial Retro-Commissioning and New Construction Program | Rebate | Varies | Solar water heat, solar thermal process heat, solar photovoltaics | Commercial | Focus on Energy |
What to know about net metering in Wisconsin
Wisconsin's net metering policy allows residents with solar systems to earn bill credits for excess electricity exported to the grid, effectively offsetting their electricity costs. Most utilities in the state offer net metering up to the customer's monthly grid usage, with some providing rollover kilowatt-hour credits.
Contact your local utility provider for the latest net metering rates.
Policies vary significantly among local utilities, including differences in buyback rates, billing periods and system size caps. Credits typically carry over month-to-month; some utilities allow indefinite carryover while others don’t.
The Public Service Commission is currently reviewing net metering rules, with potential changes on the horizon. At least two utilities in Wisconsin want to reduce the amount of credit they are required to give homeowners for excess power generated on their roofs.
If policies become less favorable, you might be better off storing excess energy in a battery. That way, you can still turn your lights on when panels aren’t generating electricity, like at night or on especially cloudy days. The biggest downside is that solar storage battery costs can be almost as high as the panels — $7,000 to $18,000.
» GREENEST STATES: Wisconsin ranked 41st in 2024
How much are solar panels in Wisconsin?
A typical solar panel installation in Wisconsin costs $10,850 to $31,000, depending what financial incentives you qualify for and other factors.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Wisconsin is 10.26 kW (kilowatts). Depending on your average household energy usage, you might need a larger or smaller system.
Average solar cost by system size in Wisconsin
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $15,500 | $18,600 | $21,700 | $24,800 | $27,900 | $31,000 |
| After federal tax credit | $10,850 | $13,020 | $15,190 | $17,360 | $19,530 | $21,700 |
How much you can save with solar panels
On average, Wisconsin homeowners with solar panels avoid $54,553 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Wisconsin, solar panels usually pay for themselves within 10.5 years.
» EXPLORE: Where your solar savings go the furthest
Solar resources in Wisconsin
Below are some additional resources that can guide you through transitioning to solar in Wisconsin.
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.
| Companies | Customer rating | Pro install | Payment options | Year founded |
|---|---|---|---|---|
| Project Solar | 4.6 | Optional | Cash, loan | 2016 |
| SunPower | 3.4 | Cash, loan, lease | 1985 | |
| ION Solar | 4.4 | Cash, loan | 2013 | |
| Green Home Systems | 2.9 | Cash, loan | 2017 | |
| Tesla Energy | 2.0 | Cash and loan | 2015 | |
| ShopSolar | 4.7 | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Wisconsin?
No, but you can enter a solar lease or finance with minimal upfront costs. Still, neither is totally free. Solar leases generally require a flat monthly fee, and you pay off a solar loan over time (with interest).
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
» SOLAR PANELS: Lease vs. buy
How do I know if my house is a good candidate for solar?
For optimal sun exposure, it’s best to have plenty of unshaded roof space facing south or west. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller, cheaper system.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
» BEST STATES FOR SOLAR: Wisconsin ranked 36th in 2024
Is my HOA allowed to restrict solar panels?
According to Wisconsin statute 236.292, no one can restrict the construction and operation of solar systems, including homeowners associations.
What has Wisconsin’s investment in solar been so far?
Total solar investments in the state amount to $2.7 billion, according to the Solar Energy Industries Association.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners. Although there aren’t as many incentives as some other states, appealing tax breaks, low interest loans and other initiatives make going solar worthwhile for many Wisconsin homeowners.
Solar costs vs. savings: Wisconsin and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Illinois | $18,420 | $30,700 | 10.12 kW | $3.07 | $48,565 |
| Iowa | $18,720 | $31,200 | 10.19 kW | $3.12 | $46,588 |
| Michigan | $18,900 | $31,500 | 9.81 kW | $3.15 | $53,663 |
| Minnesota | $18,540 | $30,900 | 10.1 kW | $3.09 | $59,279 |
| Wisconsin | $18,600 | $31,000 | 10.26 kW | $3.10 | $54,553 |
Article sources
- DSIRE, "Wisconsin Programs." Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in Wisconsin." Accessed March 29, 2024
- Solar Energy Industries Association, "Wisconsin Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Wisconsin?" Accessed March 29, 2024.
- Wisconsin Department of Revenue, “Renewable Energy Systems: Biogas, Solar & Wind – Property Tax Exemption.” Accessed July 30, 2024.
- Clean Energy Authority, “Solar Rebates and Incentives.” Accessed July 30, 2024.
- Wisconsin Department of Revenue, “Join The Conversation About Potential Net Metering Policy Changes.” Accessed July 30, 2024.
- Wisconsin State Legislature, “Certain restrictions void.” Accessed Nov. 8, 2023.
- The Cap Times, “Metering change would kill badly needed rooftop solar, critics say.” Accessed July 30, 2024.
