Wisconsin offers money-saving federal and state incentives for homes and businesses to make renewable energy more affordable and accessible. Homeowners and business owners can receive help from tax credits, rebates, and financing to lower the starting costs of solar power and energy storage.

These money-saving incentives come from federal and state funds to support Wisconsin’s goal of using cleaner energy. Overall, these incentives can greatly reduce installation costs, which makes switching to solar a smart investment.

Residential Solar Incentives: Saving Big on Your Home Energy Costs

Wisconsin has many solar incentives in place that can help homeowners invest in clean, renewable energy. For the near future, homeowners can expect a 30% tax credit plus a state incentive of $300. Read more about residential incentives with Arch.

Many incentives also support homeowners installing EV charging stations, allowing them to offset the installation costs. With these incentives, Wisconsin residents can significantly lower their home energy costs and protect themselves from rising utility rates.

The following are Wisconsin residential programs currently in place:

Inflation Reduction Act (IRA)

The federal Inflation Reduction Act was signed into law on August 16^th, 2022. This act is one of the biggest federal investments in American energy security. Read more about the Inflation Reduction Act.

The outcome of the IRA is a 30% tax credit against the cost of the system. This includes solar, batteries, and home EV chargers.

This FITC is categorized as a tax credit, which reduces the amount of income tax you would otherwise owe. Consult with Arch and your tax professional to see if these incentives apply to you, or read more about this incentive from Energy.gov.

Focus on Energy Home Solar Rebate

Many Wisconsin homeowners can receive a $300 in cash rebate for installing solar through the Focus on Energy program. If your project is in a designated rural area, the Focus on Energy program may provide a rebate of up to $600.

Not all utility companies in Wisconsin offer this rebate. Reach out to Arch or your provider for additional information.

Solar Energy System Property Tax Exemption

The Solar Energy System Property Tax Exemption in Wisconsin helps homeowners and businesses. If they install solar systems, their property taxes will not increase. This means they won’t pay more taxes because of the added value from solar.

Installing a PV system can increase a property’s value, leading to higher taxes. However, this exemption does not include solar in the tax assessment, which reduces the financial burden of solar.

Renewable Energy State Sales Tax Exemption

The Renewable Energy State Sales Tax exemption makes renewable energy cheaper by eliminating the 5% sales tax on solar PV systems and other renewable appliances in Wisconsin.

100% exemption form sales and use tax for eligible purposes.

On average, customers can be credited 30% of the installed system cost plus $300 within a year of solar installation, saving average solar customers between $6,500 and $24,000!

Commercial Solar Incentives: Powering Wisconsin Businesses with Renewable Energy

Wisconsin has many commercial solar incentives to help businesses switch to renewable energy while lowering pay-off time and increase ROI.

Through programs like Focus on Energy, businesses can get cash incentives for installing solar and energy storage systems which help them rely less on grid power. Solar can also meet corporate sustainability goals, keep important commercial processes running, and lower energy costs.

The following Wisconsin solar commercial incentives are currently in place:

Business Energy Investment Tax Credit

The Business Energy Investment Tax Credit is a federal incentive designed to lower the overall costs of renewable energy across the US. One of the most significant incentives for early renewable adoption, this program directly reduces the tax liability of businesses that install eligible energy systems.

Businesses receive a 30% tax credit for all systems that started construction between 2022 and 2032, stepping down gradually after 2032 unless extended by legislation.

MACRS Depreciation 

The Modified Cost Recovery System (MACRS) is a US tax depreciation system which allows businesses to recover the cost basis of renewable systems that deteriorate over time.

Each year during the first 5-year period after commercial solar installation, owners can claim a percentage of what they spent to install solar on taxes, thereby lowering their annual tax bill.

This incentive also works together with the ITC listed above which compounds savings.

Solar energy equipment installed 2024 or later can qualify for a 40% depreciation reduction.

Bonus Depreciation

With 100% bonus depreciation, businesses can deduct the entire cost of their solar system in the first year, an alternative to spreading the cost over 5 years.

These incentives let a business potentially deduct the entire cost of the solar installation within the first year.

Focus on Energy Business Customer PV Incentive

The Focus on Energy Business Customer PV Incentive promotes energy efficiency and renewable energy in Wisconsin, providing incentives to reduce the costs of energy-efficient upgrades to new or existing commercial sites.

The solar benefit is currently $50/kW (DC) with a max incentive of $25,000. Commercial agriculture companies are also eligible for an added $10,000.

This incentive also combines with the ITC tax credit, which can save more than the $25,000 offered by just this incentive alone. Speak with a solar professional who can work with your specific business needs to see how much these incentives can save.

Our Conclusion

Thanks to the many incentives available, investing in residential or commercial solar in Wisconsin is affordable.

Depending on if you are a homeowner or business, you can take financial advantage of programs like Focus on Energy, the federal ITC, and MACRS depreciation can save you money.

These incentives help Wisconsin businesses and homeowners lower their energy bills, protect the environment, and support green energy goals.

In addition to saving money, the transition to solar aligns with broader sustainability goals both state and nationwide. Solar projects reduce reliance on the grid and fossil fuels.

With rising utility rates and the demand for green energy rising, these incentives make it the perfect time to invest in Wisconsin solar energy. Whether you are a business trying to save money and hit ESG goals, or a homeowner trying to go green and lower your utility bill, solar energy installation is something worth having a conversation about.

More about residential incentives with Arch.

More about commercial incentives with Arch.