Solar Panel Laws in Wisconsin

On average, Wisconsin receives 187 days of sunlight every year. This makes it the ideal climate for switching to solar energy.

Solar power systems depend on the sun’s energy, and the more sunny days you have, the better value you get from going solar.

The average cost of solar installation in Wisconsin is around $16,000. However, there are several different ways to save on this initial outlay.

Federal tax credits, sales tax exemptions, property tax exemptions, and rebates can reduce solar installation costs to between $13,598 and $18,398. The amount you pay is dependent on where in Wisconsin you are located. Some areas are not eligible for rebates while installing solar power in others is more expensive.

Below are some savings you can expect when installing a solar power system in your home.

Key Takeaways

• Wisconsin’s abundant sunlight makes it an ideal location for solar energy adoption, offering substantial savings for residents.
• Federal tax credits, Wisconsin rebates, property tax exemptions, and sales tax exemptions can significantly reduce the state’s solar installation cost, making it more affordable for homeowners.
• Net metering and utility savings further enhance the financial benefits of solar power, with potential payback periods as short as 7.5 years, making solar an excellent long-term investment.

Federal Tax Credit

You get 30% of the total solar power installation cost as a credit on your federal tax between 2022 and 2032. This amount is credited to the tax you owe and is not a monetary amount awarded to you in the form of a refund or rebate. That’s more than a quarter of the cost of installation that you will save.

Wisconsin Rebate

Eligible people can receive a $500 rebate on solar power installation costs. To be eligible, you must live in areas where the utility provider is a Focus on Energy Partner.

The solar system setup must also meet some requirements. The solar panels must face within 90 degrees due South. The panels must receive no more than 10% of shade from nearby trees, vegetation, or structures. There are a couple of other eligibility criteria.

If you are eligible, submit your application for the rebate after the installation has been completed, and you will receive a check in the mail for $500.

Property Tax Exemption

Solar power installation is considered to be a home improvement. A home improvement increases the value of your property and, therefore, the tax you pay.

In Wisconsin, solar installation is 100% exempt from property taxes. In other words, the amount the solar system increased your property value will not be taxed.

Sales Tax Exemption

When you buy your solar system, you are exempt from paying the 5% sales tax required to purchase all other items in Wisconsin.

While this may not seem like a considerable saving, when you are looking at spending $20,000 on a solar system, it is a significant discount of $1,000.

This amount is not deducted from the cost of the solar system but rather not added to the purchase cost. For example, if your solar system costs $20,000, you would pay $21,000 with sales tax. You only pay $20,000 with a sales tax exemption.

Net Metering

Net metering credits you with any energy the solar system produces that you don’t use. For example, if your solar system produces more kilowatts during the day than your house needs, you will be credited with those kilowatts at night when using grid electricity.

However, the system does not work on credit for credit basis in Wisconsin. It costs about 4 cents for a utility provider to produce 1 kilowatt of electricity.

Solar customers are credited with around 12 cents per kilowatt of solar energy. There is currently much debate as to the fairness of this crediting system.

It means savings of up to 3 times per kilowatt that they can produce and not use for solar power customers. These savings can significantly impact offsetting the cost of solar power installation. You must apply for net metering with your utility provider to benefit from this program.

Utility Savings

On average, solar power amounts to a savings of around $1,500 on an average household utility bill per year. Inflation and increases in power rates may mean that you save even more.

After considering the Federal tax credit, this savings means that your solar system pays for its installation in about 7.5 years.

The payoff time is even shorter when considering savings from the sales tax exemption and the property tax exemption. If you are eligible for the $500 rebate, you pay your installation costs even faster. And that’s before you take into account net metering.

Once your solar power system has been repaid in full, the savings you make on your utility bill, property tax exemption, and net metering can be placed in your back pocket.

Installing a solar power system in your home will provide significant savings and add value to your property. Going solar is, therefore, an excellent investment.

Case Study: Residential Solar Installation in Madison, Wisconsin

Background

At Solar Panels Network USA, we strive to make solar energy accessible and affordable for homeowners across Wisconsin. This case study highlights our recent project in Madison, Wisconsin, where we assisted the Miller family in transitioning to solar energy amidst the state’s regulatory and financial landscape.

Project Overview

The Miller family, residing in a suburban area of Madison, sought to reduce their carbon footprint and utility bills by installing a solar panel system. They were particularly interested in taking advantage of the numerous financial incentives available in Wisconsin.

Implementation

We began by conducting a thorough assessment of the Millers’ property to determine the optimal system size and configuration. Our team provided a detailed overview of available financing options, focusing on maximizing the benefits of Wisconsin’s solar incentives.

Financing and Incentives:

• Federal Tax Credit: The Millers qualified for the 30% federal solar tax credit, reducing their overall installation cost by a significant margin.
• Wisconsin Rebate: As customers of a Focus on Energy partner utility, they were eligible for a $500 rebate. We ensured their solar panels met all orientation and shading requirements for eligibility.
• Property Tax Exemption: The Millers benefited from a 100% property tax exemption, which means the value added by the solar installation would not increase their property taxes.
• Sales Tax Exemption: The purchase of their solar system was exempt from the 5% sales tax, providing additional savings.

Regulatory Compliance:

• Solar Zoning Ordinance: We ensured compliance with local solar zoning regulations, securing the necessary permits and adhering to community-specific guidelines.
• Net Metering: We assisted the Millers in applying for net metering with their utility provider. This program credited them for excess energy produced at a rate significantly higher than the cost to produce it.

Installation Process:

• Our team managed the installation from start to finish, including mounting the solar panels, connecting the system to the grid, and ensuring optimal configuration and efficiency.
• We provided the Millers with a comprehensive maintenance plan and a monitoring system to ensure long-term performance and savings.

Results

The installation was completed successfully, yielding multiple benefits for the Miller family:

• Reduced Utility Bills: The solar panel system significantly lowered their monthly utility bills, with savings that offset the initial costs.
• Increased Property Value: The solar installation added value to their home, making it a more attractive asset in the real estate market.
• Environmental Impact: By switching to solar energy, the Millers reduced their carbon footprint, contributing to a cleaner and more sustainable environment.

Summary

This case study demonstrates how Solar Panels Network USA can navigate the financial and regulatory landscape of solar installations in Wisconsin. By leveraging local and federal incentives, understanding zoning ordinances, and providing tailored financing options, we help homeowners like the Millers achieve their renewable energy goals. Their experience underscores the importance of professional guidance in maximizing the benefits of solar energy investments, ensuring long-term savings and environmental benefits.

Expert Insights From Our Solar Panel Installers About Solar Panel Laws in Wisconsin

Wisconsin’s net metering policies provide a substantial incentive for homeowners by allowing them to earn credits for excess solar energy produced, which significantly reduces utility bills.

Senior Solar Installer

Understanding the array of tax credits, rebates, and exemptions available in Wisconsin is crucial for maximizing the financial benefits of solar installations, making the switch more affordable.

Lead Solar Consultant

Navigating the specifics of Wisconsin’s solar laws, such as the Focus on Energy rebate, can be complex, but with expert guidance, homeowners can effectively leverage these benefits.

Chief Solar Technician

Experience Solar Excellence with Us!

Trust in Solar Panels Network USA, where our seasoned experts deliver top-quality solar solutions for homes and businesses nationwide. With a legacy of countless successful installations and a commitment to sustainable energy, we’re your reliable partner in the solar journey. Ready for a brighter, eco-friendly future? Call us now at (855) 427-0058 and harness the power of the sun!

Map image by Wikimedia Commons User: TUBS / CC-BY-SA-3.0