Are you considering going solar in Wisconsin? Prepare to unlock a range of benefits, including significant savings on electricity bills, protection from utility price fluctuations, reduced residential carbon emissions, and even a boost to your home’s value. In this comprehensive guide, we will walk you through the various tax incentives and rebates available to homeowners in Wisconsin, empowering you to make an informed decision and maximize your savings.
Wisconsin homeowners looking to make the switch to clean and renewable energy through solar power have access to a variety of tax incentives and rebates offered by the state. As the cost of solar panels continues to decrease, Wisconsin residents can tap into a range of incentives and rebates to make the transition to solar power more affordable. Let’s explore the key incentives available in Wisconsin, including the federal Residential Clean Energy Credit and state-level initiatives such as net metering, rebates, and tax exemptions.
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Federal Residential Clean Energy Credit
Homeowners in Wisconsin can benefit from the federal Residential Clean Energy Credit, formerly known as the Investment Tax Credit. Through this program, you can deduct 30% of the total cost of your solar system from your federal income taxes. This credit is available for systems of all sizes installed between 2022 and 2032. The credit percentage gradually decreases to 26% in 2033, 22% in 2034, and expires in 2035.
Net Metering
Wisconsin offers net metering, allowing homeowners to send excess solar generation back to the power grid and receive credits to offset their utility bills. The state’s Public Service Commission mandates that utilities provide retail rate net metering credits equivalent to a solar customer’s monthly power consumption. This arrangement ensures homeowners receive fair compensation for the excess energy they contribute to the grid. Unlike certain states such as California with its NEM 3.0 policy (and as of October 1st, North Carolina), Wisconsin’s net metering program ensures residents receive the maximum payment for their surplus energy.
Focus On Energy Rebates
Wisconsin’s Focus on Energy program provides a flat, one-time $500 solar rebate to qualified homeowners, irrespective of the system size. This rebate is applicable when purchasing and installing new solar panels on rooftops. Check the Focus on Energy website to confirm if your utility participates in this program and to access the necessary information and application process.
State Solar Sales and Property Tax Incentives
Wisconsin offers sales and property tax exemptions for solar equipment. These incentives enable homeowners to avoid paying taxes on the added home value resulting from the installation of a solar system. When filing state tax returns, you can claim these exemptions, reducing your overall tax burden.
But wait, is it worth going solar in a cold state like Wisconsin?
Contrary to common misconceptions, solar panels can generate energy even in cold climates. Solar panels thrive on sunlight, not heat, to produce power and in fact, cold weather can actually enhance the efficiency and operation of solar panels. In colder climates, solar panels experience lower temperatures, which can lead to improved efficiency. The cooler environment helps prevent overheating, allowing the panels to maintain their highest efficiency levels.
