Solar incentives in Wisconsin that bring your money back

Updated: Mar 04, 2025
7 min

Julia ZaraevaAuthor

Live in Wisconsin and would like to install solar panels, but are worried that the upfront costs will be high? What if we told you that you could get quite a bit of your money back? Intrigued? Then read our article about solar incentives in Wisconsin.

Key takeaways

Wisconsin state is focused on solar energy and offers several clean energy incentives and rebates for homeowners and businesses.
Wisconsin residents can receive a 30% federal tax credit on the total cost of their solar electric system installation.
Wisconsin offers sales tax exemptions for solar devices generating at least 200 watts of AC. Excludes energy storage and equipment for altering or transferring generated electricity.
Net metering allows homeowners to sell excess solar energy back to the grid for credits. Credits are valued at the service company's retail rate per kWh. Check if they expire by the end of the year. Xcel Energy is highlighted as a top net metering utility program.
The added value of a solar PV system is exempt from property taxes. Solar panels increase property value by approximately 4%.
Solar access laws protect solar systems from shading by neighboring structures or vegetation.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Save from buying without paying taxes

Wisconsin offers sales tax exemptions for solar. To qualify as eligible, the devices generate at least 200 watts of alternating current. This does not cover energy storage units or equipment used to “convey, transfer, or alter” the generated electricity. Buyers need to complete Form S-211, “Sales and Use Tax Exemption Certificate,” and provide the completed form to the seller to claim the sales tax exemption.

Sell excess electricity with net metering program

The net metering policy in Wisconsin has made it easier for its customers to sell excess solar power instead of storing the energy in batteries. Your PV system will start to pay for itself primarily through the net metering program by selling solar energy that you haven’t used to the commercial grid.

When you send excess power to the grid it will be stored as credits which can either be sold or later used to even out monthly power consumption needs. The credit value in Wisconsin is equal to your utility retail rate per kWh and never expires, but continues to roll over as long as you keep the same utility.

One of the top net metering utility programs in Wisconsin is through Xcel Energy. You can sign up as a residential or business customer on their website. The application requires an interconnection fee.

Raise your property value but not your taxes

Wisconsin residents invested in a solar energy system do not have to pay any additional property taxes on the added value a solar PV system brings to their homes. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report. In order to claim the exemption, property owners must apply for an Energy System Exemption Request from their local assessor.

this is how much solar panels increase the value of your house

Protect your solar panels from shade with Solar access rights

Solar access laws will help ensure your PV system always has adequate sun exposure, protecting you from potential obstacles. These rights will guarantee that your neighbor will not enlarge the size of their building or allow their vegetation to block sunlight from reaching your system.

Incentive/ Program	Description	Benefits	Eligibility/ Requirements	Notes
Federal ITC (30%)	30% tax credit on the total cost of solar system installation.	Reduces overall system cost, accelerates payback period.	Must own the system, meet IRS guidelines.	Applies to installation, equipment, and other associated costs.
WI Sales Tax Exemption	Exemption from state sales tax on solar devices.	Reduces upfront costs.	Devices must generate at least 200 watts AC. Form S-211 completion.	Excludes energy storage and transfer equipment.
Net Metering	Allows homeowners to sell excess solar energy back to the grid for credits.	Reduces or eliminates electricity bills.	Customers of participating utilities.	Credits at retail rate, no expiration.
Property Tax Exemption	Exemption on added property value from solar.	No increase in property taxes due to solar.	Apply for Energy System Exemption Request from local assessor.	Property value increases by ~4%.
Solar Access Rights	Laws protecting solar systems from shading.	Ensures optimal solar panel performance.	Legal protections.	Protects from neighbor shading.

What are solar incentives, and why do they exist?

Solar incentives are programs designed to encourage individuals and businesses to adopt solar energy systems. These incentives can take many forms, including tax credits, rebates, feed-in tariffs, and grants, all aimed at reducing the upfront costs and increasing the financial benefits of installing solar panels.

The fundamental reason these incentives exist is to accelerate the transition to cleaner, renewable energy sources. Governments and policymakers recognize the urgent need to reduce reliance on fossil fuels. Solar energy offers a viable and increasingly cost-effective alternative, but the initial investment can be a significant barrier for many. By providing financial assistance, incentives make solar more accessible and affordable, driving wider adoption.

Beyond environmental concerns, solar incentives also serve economic and energy security goals. Promoting solar energy can create jobs in manufacturing, installation, and maintenance, stimulating local economies. By diversifying energy sources, countries can reduce their dependence on imported fossil fuels, enhancing energy independence and resilience.

Solar incentives also help to level the playing field for renewable energy. Historically, fossil fuel industries have benefited from substantial subsidies and tax breaks. Solar incentives for solar energy act as a counterbalance, helping to correct market distortions and promote fair competition. This allows solar to compete more effectively with traditional energy sources, driving innovation and technological advancements.

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Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.