Wisconsin Solar Incentive Programs Explained

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)

Residential solar and energy storage systems installed in Wisconsin in 2025 are eligible for the Federal ITC, which provides up to 30% credit toward the total cost of a solar system. 

The credit is non-refundable, meaning it cannot exceed the amount you owe in tax and would not directly increase any refund you would receive. Excess credit can be carried forward and used in future years. 

Previous legislation had this credit available until 2032, but due to the passing of H.R. 1, “the big beautiful bill”, homeowners are only able to claim this credit if their system is installed before December 31st, 2025. Systems installed starting in 2026 will not be able to receive any federal solar tax credits. Learn more about the changes to the tax credit here.

Commercial systems or systems owned by a third party (lease or PPA) can still benefit from the federal tax credit until December 31st or 2027. 

Modified Accelerated Cost Recovery System (MACRS)

IRS Section 179 depreciation allows certain qualified properties to be classified as 5-year properties, and tax credits are taken on the depreciation. This credit applies to commercial sites and certain investment properties. 

Due to the passing of H.R. 1, the one big beautiful bill, this credit will expire at the end of 2027. Specific information on what qualifies can be found on the IRS website.

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 offers qualified residential customers $300 for the system installation, and a bonus $300 if they live in a qualifying rural zipcode. 

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.