Wisconsin Solar Incentive Programs

While being a northern and often snowy and overcast state, Wisconsin ranks as the #18 state in total installed solar capacity with 3.2 GW installed. This capacity is largely driven by utility-scale solar development since 2020, while fewer than 1% of homes in Wisconsin have solar.  

Wisconsin’s utility grid is a mixture of many different utilities, being a deregulated market. The amount of utilities leads to a lot of different policies around net metering, but homes can still benefit from offsetting the state’s 2024 average electric price of $0.1757/kWh. 

Below you’ll find a breakdown and links to some of the incentives available to homes and businesses looking to make the switch to solar in Wisconsin. You can find further details at https://programs.dsireusa.org/system/program/wi

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

State Incentives & Programs

Property Tax Exemption

Starting on January 1st, 2014, solar energy systems are exempt from general property tax. Studies have shown that adding solar to a home increases the property value by 5-10% depending on the area. 

According to Zillow, the average home price in Wisconsin is $328,216, meaning that installing solar could increase the property value anywhere from $16,410 – $32,821. Thanks for this exemption; homeowners won’t have to pay extra property taxes because of that increase.

Focus on Energy Rebate

Focus on Energy is a program partnered with Wisconsin utilities to help homes and businesses convert to solar energy. The program used to offer a maximum of $600 for an installation, but starting in 2026, the residential program has been increased to $600/kW up to a max of $2,400. 

Businesses and commercial systems can receive $50/kW installed up to $25,000. Agricultural producers can receive an additional $10,000. The incentive is available on a first-come-first-serve basis, and the applications need to be filed prior to the system being installed. 

Sales Tax Exemption

Solar and other renewable energy equipment are exempt from Wisconsin sales tax as long as the system is capable of producing 200W AC per day. 

Milwaukee Shines Solar Program

Milwaukee Shines is a program designed to help further solar adoption in the Milwaukee area. They organize and supersize group-buy programs to get lower costs for homeowners, and also sponsor low-interest loan programs. 

Their low-interest loan program has up to $2 million in funding and is designed for homeowners within Milwaukee city limits. Loans can be a maximum of $25,000, up to 15 years, and have interest rates set at a minimum of Prime + 1.5%, and a maximum of Prime + 2.25%. 

PACE Financing is also available for businesses in Milwaukee. 

Focus on Energy – Design Assistance Program

To simplify the solar or energy efficiency design process, Focus on Energy has design assistance programs. Buildings that are enrolled in the Energy Design Assistance or Energy Design Review can qualify for a $2,500 Solar Ready Buildings incentive.

Net Metering

Net metering is generally available to Wisconsin residents for investor-owned and municipal utilities. Each electric utility gets to make its own rules about net metering and buy-back rates, so it is important to check with your utility before installing solar. 

Wisconsin is home to 81 municipal electric utilities and a few larger investor-owned utilities. Many of the utilities set size restrictions on residential systems, such as 120% of average annual consumption or a maximum of 20 kW to qualify for net metering.

The Future of Solar in Wisconsin 

SEIA’s forecasts have Wisconsin remaining in 18th place in the US for capacity, but we wouldn’t be surprised if that increases due to demand for data centers. Wisconsin has been a popular choice for businesses looking to build distribution hubs and AI data centers, so if those buildings require more energy, we could see the commercial and utility-scale market increase. 

Homeowners going solar in Wisconsin should make sure to do their research when going solar and check out all their options. If you’re looking for a high-quality install where your equipment is protected for 30 years, and you’re protected from surprise labor costs, look for a Solar Insure Certified Provider and an SI-30 warranty.