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Wisconsin is making notable strides in solar energy, offering a range of incentives that make solar installations both practical and cost-effective for residents and businesses. With a combination of state tax credits, utility programs, and net metering policies, Wisconsin provides several financial benefits to help offset the costs of going solar. In this article, we’ll break down the key solar incentives available in Wisconsin, detailing how they work and how you can take advantage of them to reduce your energy expenses and contribute to a more sustainable future.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
Net Metering
In Wisconsin, net metering (or net energy billing) is accessible to customers of both investor-owned utilities and municipal utilities seeking to install customer-owned electric generation below a specified size threshold. With net metering, customers are invoiced based on the variance between the energy they consume and the energy they generate within a billing cycle.
Focus on Energy Program
Wisconsin residents transitioning to solar energy are eligible for cash rebates through the Focus on Energy program. Homeowners in densely populated regions can receive rebates of up to $500, while those in remote areas may qualify for up to $1,000. It’s worth noting that not all utility companies in Wisconsin participate in this rebate program, so homeowners should verify eligibility with providers in their vicinity.
Solar for All
- The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development.
- Using a blend of homeowner grants, incentives, tax credits, loan options, and collaborations, the Wisconsin Economic Development Corporation (WEDC) aims to eliminate obstacles to solar energy adoption across the state. Central to the program’s objectives is assisting disadvantaged communities in Wisconsin through the installation of solar panels on both single-family and multifamily residential properties. The Wisconsin Solar for All (SFA) initiative ensures that participants face minimal or no initial costs when engaging in solar programs, with the primary aim of reducing household energy expenses. Leveraging the expertise of the Wisconsin Technical College System and other workforce partners, who are already preparing individuals for careers in clean energy, especially solar installation, will be crucial to the program’s success.
- The Midwest Tribal Energy Resources Association, Inc. (MTERA), along with coalition partners GRID Alternatives (GRID), the Alliance for Tribal Clean Energy (ATCE), and the Native CDFI Network (NCN), will implement Tribally-owned residential solar projects, including storage and essential upgrades, benefiting the 35 Tribes located in Michigan, Minnesota, and Wisconsin. Based in Wisconsin, the coalition will capitalize on the extensive expertise and experience of its members to develop a program that empowers Tribes and tribal energy advocates. It will offer technical assistance for project deployment to aid in planning and constructing residential solar projects on Tribal Lands in the Midwest, while also focusing on workforce development to bolster Tribal self-determination and self-sufficiency.
- Teaming up with lead applicant GRID Alternatives, a coalition of ten mission-driven nonprofit solar and affordable housing providers and allies has collaborated to develop the Solar Access for Nationwide Affordable Housing Program (SANAH). SANAH is meticulously crafted to maximize benefits for households and communities while advancing equity, reducing harmful pollution, and combating climate change. The program offers a multitude of advantages, including expanded access to solar and storage for income-qualified households, significant energy savings and relief from burdensome costs, as well as additional benefits like efficiency improvements and electrification.
Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
