Going Solar in Wisconsin: Unlock Generous Incentives and Rebates
With Wisconsin’s high electricity rates, ranking 14th for residential and 15th for commercial rates nationwide, it’s no surprise that more and more property owners are exploring renewable energy options. According to the Solar Energy Industries Association (SEIA), while Wisconsin currently ranks 26th for solar adoption, the state is projected to rise to the 12th position in the coming years due to the increasing number of homeowners investing in solar energy systems. Wisconsinites can take advantage of the state’s abundant sunshine and the generous solar incentives, exemptions, and rebates available for going solar.
Wisconsin’s Solar Incentives, Rebates, and Benefits
Net Metering in Wisconsin
Thanks to the robust net metering laws in place, Wisconsin property owners can receive credits on their power bills! Net metering allows solar panel owners to offset the cost of electricity they draw from the utility. If your solar energy system produces more power than you consume, the excess is sold back to the grid, resulting in credits on your bill. This solar incentive makes the investment in solar panels even more attractive.
Strong Interconnection Standards
Wisconsin’s interconnection standards, which govern the rules for connecting renewable energy systems to the electricity grid, are robust. These strong standards facilitate the ease of net metering and the integration of solar power into the grid.
Energy Rebates
Wisconsin offers numerous rebate programs that focus on making solar energy more accessible to property owners. These energy rebates help reduce the initial cost of going solar, either through a lump sum payment or an amount deducted from the final installed price.
Performance-Based Incentives (PBIs)
Fortunately, Wisconsin provides substantial Performance-Based Incentives (PBIs), which are solar incentives based on your system’s metered power output. Also known as the Solar Power Performance Payments System, property owners can earn Solar Renewable Energy Credits (SRECs) that correspond to the number of kilowatt-hours generated by their solar system. SRECs are an excellent way to help your system pay for itself over time.
Property Tax Exemptions
In Wisconsin, homeowners can deduct the value that their installed solar system adds to the valuation of their property, thanks to the state’s property tax exemptions. As a renewable energy source can significantly increase a property’s value, this solar incentive is highly beneficial.
Sales Tax Exemption
Wisconsin’s sales tax exemption relieves homeowners who install solar systems by exempting them from paying any state sales tax on the system, resulting in an estimated 5% savings right from the start.
Inflation Reduction Act (IRA) Tax Credit
Homeowners who meet the eligibility criteria can receive a tax credit of up to 30% of the solar system’s cost under the Inflation Reduction Act (IRA).
Local Solar Loans
Wisconsin offers local low-cost solar loans to assist property owners in going solar. For example, Greenpenny provides Solar Tax Credit loan options where property owners can borrow 26% of the cost of their solar installation with a single payment for 15 months. Similarly, the Clean Energy Credit Union (CECU) offers 12 and 18-month loans that include the solar tax credit.
Don’t Forget the Federal Tax Credit!
In addition to the excellent state-specific rebates and Wisconsin solar incentives, residents can also take advantage of the Federal Solar Investment Tax Credit. This credit allows homeowners to deduct 26% of the system’s cost from their Federal income taxes. However, it’s important to note that this percentage is expected to decrease in the coming years, so acting promptly is crucial. Additionally, this credit only applies to owners of solar systems, not those who choose to lease a system.
