✅ Federal Incentives
All federal benefits apply to entities in Wisconsin.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. The Inflation Reduction Act (IRA) of 2022 increased the credit to 30% with no dollar limit.
⚡ Sales Tax Exemption
Wisconsin offers a 5% sales tax exemption on the purchase of solar systems. This means you won't pay state sales tax on qualifying solar equipment, reducing the upfront cost of installation.
⚡ Property Tax Exemption
Wisconsin provides a property tax exemption for solar energy systems. This means that installing a solar system will not increase your property's assessed value for tax purposes.
⚡ Focus on Energy Program
This statewide program offers rebates for solar installations. Homeowners can receive up to $500, with an additional $300 available for rural customers. Eligibility and rebate amounts may vary by utility provider.
✅ Utility Incentives
⚡ Net Metering
Wisconsin requires investor-owned and municipal utilities to offer net metering. Under net metering, excess electricity generated by your solar system is credited to your utility account at the full retail rate. These credits can offset future electricity bills, and any remaining credits at the end of the year may be paid out at a utility-specific avoided cost rate.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Wisconsin offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit, sales tax exemption, property tax exemption, and net metering policies provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make Wisconsin an attractive state for solar energy adoption.