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.
Contents
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.
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
About the Author
Solar Panels Network USA stands at the forefront of solar energy solutions, driven by a team of seasoned solar engineers and energy consultants. With over decades of experience in delivering high-quality solar installations and maintenance, we are committed to promoting sustainable energy through customer-centric, tailored solutions. Our articles reflect this commitment, crafted collaboratively by experts to provide accurate, up-to-date insights into solar technology, ensuring our readers are well-informed and empowered in their solar energy decisions.