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Add State and Local Incentives to the 30% Federal Tax Credit
Learn about solar incentives and solar rebates. Find out what is available to you through federal, state and local programs, as well as local utilities.
State and Local Solar Panel Rebates
Combining the Federal tax credit with state incentives you qualify for may significantly reduce the cost of your solar PV system.

Read more good news about these programs and important tips on qualifying below.
Federal Solar Tax Credit
30% of the cost of your Solar Electric System and installation can be deducted from your federal tax bill.

Read more about this credit and what qualifies.





Solar Incentives by State… Click on your state to see what is available.    
Solar States


— You may be able to afford a larger solar PV system than you originally thought!
— You may be able to add the battery backup system you were planning to buy in a year or two



The Good News About Solar System Incentives, Qualifications and Tips
Some solar incentive programs pay you back over time, based on the energy you generate. Other solar incentives are one-time payments of rebates or credits. Incentive requirements and definitions may vary between states.

Incentive types can be specifically for residential, schools, business, or industrial; or inclusive of all of them. Solar incentives are mainly for grid tied systems and are sometimes available for off grid systems.

The incentives may be only for solar photovoltaic (electric), for electricity generated by wind, or for solar thermal (hot water generation). Other types of incentives may incorporate multiple solar technologies.

Programs with yearly or periodic application dates have credits or rebate rates that may be stepped down over time.

To qualify for incentives, your solar system may have to be installed by a licensed Photovoltaic System Installer, and/or connected to the grid by a licensed Electrician. This may be particularly true for Grid-Tie (Grid-Intertied) systems.
Plan ahead and act quickly. Many incentive programs are time sensitive. First-come-first-served programs, such as lotteries, can be spoken for in minutes after the opening of their application date.

Be careful including incentives in your PV system's budget due to requirements and possible deadlines to meet before qualifying.

Always consult a tax professional in regards to your eligibility for tax incentives.





Solar Incentive Glossary
Battery Backup Systems
Battery backup systems can store electricity from the grid or a fuel-powered generator to provide emergency power when the grid goes down. It can also store energy created PV system to power appliances and lights at night after the sun goes down.

Feed in Tariffs,
a Performance Based Incentive, or PBI

(Available for Grid Tied Systems.)
Feed-in Tariffs are typically long term contracts with your local utility for performance-based compensation.

The contracts are typically a 15-25 year purchase agreement at a guaranteed rate. The rate may decrease over time as specified in the agreement. Feed-in Tariffs may ultimately pay for your PV system or even exceed your initial investment depending on the specifics in the contract.

Originally started in Germany in 1990 and restructured in 2000 to include the right to interconnect to the utility grid. It was designed as an incentive to promote cost-effective renewable energy use and advancements in technologies. Due to its success, the current German policy is the cornerstone for the creation of many feed-in tariff programs around the globe.

Green Building Programs
(May be available for Off-grid and/or Grid-tied Systems.)
Green Building Programs are generally for new construction and remodeling, or just adding a solar electric system. The most common incentives are reductions or waivers of building permit fees. Some state or local organizations offer coupons that reduce construction and/or installation costs to homeowners. The home or business owner usually gives the coupon to their program-authorized installer/contractor. Once the system is installed the installer/contractor can be reimbursed for the amount of the coupon by the program's organization.

Grid-Tied PV Systems
Grid tied systems are inter-connected to send energy back to the grid when your solar electric system creates more than you're using; and you can receive energy from the grid when you're using more electricity than your system is generating at the moment. Learn more about grid-tied solar systems.

Loans
(May be available for Off-grid and/or Grid-tied Systems.)
State or local governments may offer low or zero interest loans for renewable energy projects. Terms are typically 10 years or less. If you are going to purchase or remodel a home that you are going to add a solar system to you may also want to see the Energy Star website for information on Energy Improvement Mortgages (EIMs).

Property-Assessed Clean Energy (PACE) financing may be offered by states that have been authorized to participate in this program. The amount of the loan is determined by a special assessment of your property and is typically repaid over a period of years.

Check with your local banks and credit unions as they may offer renewable energy loans for less than the prime rate. Also consider that mortgage loans and home equity loans can offer several advantages: longer terms, lower interest rates than conventional bank loans, and tax-deductible interest.
Net Metering
(Available for Grid Tied Systems.)
As of January 2012, only four states do not have net metering policies ‐ South Dakota, Mississippi, Alabama and Tennessee. These programs are for utility customers who generate their own electricity and feed excess energy back into the grid. Net-metered customers may use grid energy when their electrical demand exceeds their solar electric system's output. Solar electric credit rates are applied to the customer's total electric use and are shown on the utility bills.

The credit rates and rules vary from state to state. Unused solar electric system credits may expire in a specified time period or they may be carried over from year to year. The credits may only be applied to the utility bill or you may be allowed to get a refund check at the end of a designated period, usually the end of the year.

Off-Grid PV Systems
Off grid systems do not feed energy back to the grid. You may be completely independent from the grid or you may be receiving grid electricity to supplement your system (Grid-Assisted). Learn more about off-grid solar systems.

Solar PV System (Photovoltaics)
A solar PV system uses photovoltaic panels (or modules) to create electricity. This powers appliances, lights, and other electric equipment.

Solar Thermal System
A solar thermal system uses panels (or modules) to heat water. The hot water is typically used instead of a water heater for everyday water use, or in a radiant heating system to warm the air.

State and Local Tax Incentives
(May be available for Off-grid and/or Grid-tied Systems.)
  • Personal tax incentives include income tax credits (dollar-for-dollar reduction on what you owe) and income tax deductions (reduces your taxable income).
  • Property tax exemptions, exclusions and credit incentives generally exclude the added value of the system from your yearly property tax. Abatements may reduce a percentage of your yearly property tax over time.
  • State sales tax incentives can be an exemption from or a credit towards the applicable sales tax.
Utility Rate Discounts & Rebates
(Available for Grid Tied Systems.)
Some utilities and state or local programs may offer temporarily reduced rates on utility bills, or one time rebates on the installation of solar systems and purchases of energy efficient appliances and/or HVAC systems.


Updated: 12/03/2016
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Wisconsin Solar Incentives
Updated: 12/03/2016
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INCENTIVE NAME: Biogas, Solar, and Wind Energy Equipment Exemption
CATEGORY: Financial Incentive
TYPE: Property Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI01F
DETAILS:
Incentive Amount - 100% of the value added by an eligible renewable energy system
Maximum Incentive - None specified
Eligible System Size - None specified
Equipment Requirements - None specified
LAST UPDATE: 12/15/2015

INCENTIVE NAME: Renewable Portfolio Standard
CATEGORY: Regulatory Policy
TYPE: Renewables Portfolio Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI05R
DETAILS:
Standard - Statewide target of 10% by 2015; requirements vary by utility
Technology Minimum - N/A
Compliance Multipliers - N/A
REC Lifetime - Eligible RRCs may be banked up to 4 years after creation.
Credit Trading/Tracking System - Yes, Midwest Renewable Energy Tracking System (M-RETS); limitations apply
Alternative Compliance Payment - N/A
WEBSITE: http://psc.wi.gov/renewables/rpsCompliance.htm
LAST UPDATE: 11/18/2015

INCENTIVE NAME: Net Metering
CATEGORY: Regulatory Policy
TYPE: Net Metering
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI03R
DETAILS:
Applicable Utilities - Investor-owned utilities, municipal utilities
System Capacity Limit - 20 kW (some utilities allow larger systems to net meter)
Aggregate Capacity Limit - No limit specified
Net Excess Generation - Varies by utility
Ownership of Renewable Energy Credits - Not addressed
Meter Aggregation - Not addressed
WEBSITE: http://psc.wi.gov/renewables/netMetering.htm
UTILITIES: Algoma Utility Comm, Arcadia City of, City of Argyle, Bangor City of, City of Barron, Village of Belmont, Village of Benton, Village of Black Earth, City of Black River Falls, Bloomer Electric & Water Co, City of Boscobel, Brodhead Water & Lighting Comm, Village of Cadott, Village of Cashton, Cedarburg Light & Water Comm, Village of Centuria, Clark Electric Coop, City of Clintonville, City of Columbus, Consolidated Water Power Co, City of Cornell, City of Cuba City, Cumberland City of, Dahlberg Light & Power Co, City of Eagle River, City of Elkhorn, City of Elroy, City of Evansville, City of Fennimore, Florence Utility Comm, Village of Gresham, Hartford Electric, Village of Hazel Green, Hustisford Utilities, Jefferson Utilities, Juneau Utility Comm, City of Kaukauna, City of Kiel, La Farge Municipal Electric Co, Lake Mills Light & Water, City of Lodi, Madison Gas & Electric Co, Manitowoc Public Utilities, City of Marshfield, Village of Mazomanie, City of Medford, City of Menasha, Merrillan Village of, Mt Horeb Village of, Village of Muscoda, Village of New Glarus, City of New Holstein, City of New Lisbon, New London Electric&Water Util, Northern States Power Co - Wisconsin, Northwestern Wisconsin Elec Co, Oconomowoc Utilities, Oconto Falls Water & Light Comm, Village of Pardeeville, Pioneer Power and Light Co, City of Plymouth, Village of Prairie Du Sac, City of Princeton, Reedsburg Utility Comm, Rice Lake Utilities, City of Richland Center, City of River Falls, Rock Energy Cooperative, Village of Sauk City, Shawano Municipal Utilities, City of Sheboygan Falls, City of Shullsburg, Slinger Utilities, Spooner City of, Stoughton City of, Village of Stratford, Sturgeon Bay City of, Sun Prairie Water & Light Comm, Superior Water, Light and Power Co, Village of Trempealeau, Two Rivers Water & Light, Village of Viola, Waterloo Light & Water Comm, Village of Waunakee, Waupun Utilities, City of Westby, Whitehall Electric Utility, Wisconsin Dells Electric Util, Wisconsin Electric Power Co, Wisconsin Power & Light Co, WPPI Energy, Wisconsin Public Service Corp, Wisconsin Rapids W W & L Comm, Wonewoc Electric & Water Util, Westfield Electric Co,
LAST UPDATE: 11/23/2015

INCENTIVE NAME: Solar and Wind Rights
CATEGORY: Regulatory Policy
TYPE: Solar/Wind Access Policy
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI04R
LAST UPDATE: 07/13/2015

INCENTIVE NAME: City of Madison - Solar and Wind Access and Planning Laws
CATEGORY: Regulatory Policy
TYPE: Solar/Wind Access Policy
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: WI06R
WEBSITE: http://www.cityofmadison.com/Sustainability/City/madiSUN/step.cfm
LAST UPDATE: 06/25/2015

INCENTIVE NAME: Renewable Rewards Program
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Focus On Energy Program
CODE: WI09F
DETAILS:
Incentive Amount - Solar PV: $600/kW
Maximum Incentive - $2,400

Eligible System Size - Solar PV: 0.5 kW minimum, 4 kW maximum
Equipment Requirements - All systems must have a 5-year warranty.
Solar PV: Must be listed on Qualified Module or Inverter list.

Installation Requirements - Solar PV: Must be installed within 45 degrees of due south, with a panel tilt between 10-50 degrees, less than 10% obstacle shading. Must be installed by a professional contractor.

WEBSITE: https://focusonenergy.com/residential/renewable/solar-electric-systems
UTILITIES: Adams-Columbia Electric Coop, Algoma Utility Comm, Arcadia City of, City of Argyle, Bangor City of, City of Barron, Village of Belmont, Village of Benton, City of Black River Falls, Bloomer Electric & Water Co, City of Boscobel, Brodhead Water & Lighting Comm, Village of Cadott, Village of Cashton, Cedarburg Light & Water Comm, Village of Centuria, Clark Electric Coop, City of Clintonville, City of Columbus, Consolidated Water Power Co, City of Cornell, City of Cuba City, Cumberland City of, Dahlberg Light & Power Co, City of Eagle River, Eau Claire Electric Coop, City of Elkhorn, City of Elroy, City of Evansville, City of Fennimore, Florence Utility Comm, Village of Gresham, Hartford Electric, Hustisford Utilities, Jefferson Utilities, Juneau Utility Comm, City of Kaukauna, City of Kiel, La Farge Municipal Electric Co, Lake Mills Light & Water, City of Lodi, Madison Gas & Electric Co, Manitowoc Public Utilities, City of Marshfield, Village of Mazomanie, City of Medford, City of Menasha, Mt Horeb Village of, Village of Muscoda, Village of New Glarus, City of New Holstein, City of New Lisbon, New London Electric&Water Util, North Central Power Co Inc, Northern States Power Co - Wisconsin, Northwestern Wisconsin Elec Co, Oakdale Electric Coop, Oconomowoc Utilities, Oconto Electric Cooperative, Oconto Falls Water & Light Comm, Village of Pardeeville, Pierce-Pepin Coop Services, Pioneer Power and Light Co, City of Plymouth, Village of Prairie Du Sac, Polk-Burnett Electric Coop, Price Electric Coop Inc, City of Princeton, Reedsburg Utility Comm, Rice Lake Utilities, City of Richland Center, Richland Electric Coop, City of River Falls, Rock Energy Cooperative, Village of Sauk City, Scenic Rivers Energy Coop, Shawano Municipal Utilities, City of Shullsburg, Slinger Utilities, Spooner City of, Stoughton City of, Village of Stratford, Sturgeon Bay City of, Sun Prairie Water & Light Comm, Superior Water, Light and Power Co, Village of Trempealeau, Two Rivers Water & Light, Vernon Electric Coop, Village of Viola, Waterloo Light & Water Comm, Village of Waunakee, Waupun Utilities, City of Westby, Whitehall Electric Utility, Wisconsin Dells Electric Util, Wisconsin Electric Power Co, Wisconsin Power & Light Co, Wisconsin Public Service Corp, Wisconsin Rapids W W & L Comm, Wonewoc Electric & Water Util, Westfield Electric Co,
LAST UPDATE: 04/03/2015

INCENTIVE NAME: Interconnection Standards
CATEGORY: Regulatory Policy
TYPE: Interconnection
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI11R
DETAILS:
Applicable Utilities - Investor-owned utilities, municipal utilities
System Capacity Limit - 15 MW
Standard Agreement - Yes
Insurance Requirements - Vary by system size and/or type; levels established by PSC
External Disconnect Switch - Required; Varies by system size and utility
Net Metering Required - No
WEBSITE: http://psc.wi.gov/utilityinfo/electric/distributedGeneration/interconnectionProcedure.htm
LAST UPDATE: 07/20/2015

INCENTIVE NAME: Green Power Purchasing
CATEGORY: Regulatory Policy
TYPE: Green Power Purchasing
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI12R
DETAILS:
Renewables % or Amount - 20% by 12/31/11
Source - Wind, Solar, Hydro, Landfill gas
LAST UPDATE: 12/15/2015

INCENTIVE NAME: Renewable Energy Competitive Incentive Program
CATEGORY: Financial Incentive
TYPE: Grant Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Focus On Energy Program
CODE: WI23F
DETAILS:
Incentive Amount - Up to $0.50/kWh and $1.00/Therm
Minimum award of $5,000
Maximum Incentive - 2015 RFP
$500,000 or up to 50% of the total project cost

Equipment Requirements - Cannot exceed 125% of the kWh or Therms consumed by the customer in a given year (except farm biogas projects)Required payback of a minimum 1.5 years. Payback must not exceed the warranty period for the product.
Installation Requirements - Must be installed at a site serviced by a participating utility
BUDGET: $3.5 million (2016) $5 million (2015) $9 million (2013); $1.5 million (2012)
WEBSITE: https://focusonenergy.com/business/renewable-energy
UTILITIES: Adams-Columbia Electric Coop, Algoma Utility Comm, Arcadia City of, City of Argyle, Bangor City of, City of Barron, Village of Belmont, Village of Benton, City of Black River Falls, Bloomer Electric & Water Co, City of Boscobel, Brodhead Water & Lighting Comm, Village of Cadott, Village of Cashton, Cedarburg Light & Water Comm, Village of Centuria, Clark Electric Coop, City of Clintonville, City of Columbus, Consolidated Water Power Co, City of Cornell, City of Cuba City, Cumberland City of, Dahlberg Light & Power Co, City of Eagle River, Eau Claire Electric Coop, City of Elkhorn, City of Elroy, City of Evansville, City of Fennimore, Florence Utility Comm, Village of Gresham, Hartford Electric, Hustisford Utilities, Jefferson Utilities, Juneau Utility Comm, City of Kaukauna, City of Kiel, La Farge Municipal Electric Co, Lake Mills Light & Water, City of Lodi, Madison Gas & Electric Co, Manitowoc Public Utilities, City of Marshfield, Village of Mazomanie, City of Medford, City of Menasha, Mt Horeb Village of, Village of Muscoda, Village of New Glarus, City of New Holstein, City of New Lisbon, New London Electric&Water Util, North Central Power Co Inc, Northern States Power Co - Wisconsin, Northwestern Wisconsin Elec Co, Oakdale Electric Coop, Oconomowoc Utilities, Oconto Electric Cooperative, Oconto Falls Water & Light Comm, Village of Pardeeville, Pierce-Pepin Coop Services, Pioneer Power and Light Co, City of Plymouth, Village of Prairie Du Sac, Polk-Burnett Electric Coop, Price Electric Coop Inc, City of Princeton, Reedsburg Utility Comm, Rice Lake Utilities, City of Richland Center, Richland Electric Coop, City of River Falls, Rock Energy Cooperative, Village of Sauk City, Scenic Rivers Energy Coop, Shawano Municipal Utilities, City of Shullsburg, Slinger Utilities, Spooner City of, Stoughton City of, Village of Stratford, Sturgeon Bay City of, Sun Prairie Water & Light Comm, Superior Water, Light and Power Co, Village of Trempealeau, Two Rivers Water & Light, Vernon Electric Coop, Village of Viola, Waterloo Light & Water Comm, Village of Waunakee, Waupun Utilities, City of Westby, Whitehall Electric Utility, Wisconsin Dells Electric Util, Wisconsin Electric Power Co, Wisconsin Power & Light Co, Wisconsin Public Service Corp, Wisconsin Rapids W W & L Comm, Wonewoc Electric & Water Util, Westfield Electric Co,
LAST UPDATE: 12/15/2015

INCENTIVE NAME: Energy Efficiency and Green Building Standards for State Buildings
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI14R
WEBSITE: http://www.cleanwisconsin.org/index.php?module=cms&page=805
LAST UPDATE: 07/07/2015

INCENTIVE NAME: Focus on Energy Program
CATEGORY: Regulatory Policy
TYPE: Public Benefits Fund
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI15R
DETAILS:
Types - Renewables and energy efficiency
Total Fund - 2010: $83 million (9.9% allocated for renewable energy)
2011: $100 million (7.6% allocated for renewable energy)
2012: $100 million ($10 million for renewables)
2013: $100 million ($10 million for renewables)
2014: $10 million for renewables
2015: $5 million for renewables
2016: $3.5 million for renewables
Charge - Each utility is required to spend 1.2% of its annual operating revenue on efficiency and renewables
BUDGET: $3.5 million in 2016 for renewable energy incentives
WEBSITE: http://www.focusonenergy.com
LAST UPDATE: 01/26/2016

INCENTIVE NAME: Madison Gas & Electric - Clean Power Partner Solar Buyback Program
CATEGORY: Financial Incentive
TYPE: Performance-Based Incentive
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: WI55F
DETAILS:
Incentive Amount - $0.25/kWh
Terms - Must be an MGE Green Power Tomorrow participant at a level at least equivalent to the AC output of the PV system; requires 10-year contract but customers may opt-out with 30 days' written notice; other contractual and equipment requirements apply (see summary)
Eligible System Size - 1-10 kW DC
Equipment Requirements - Must be installed with meters to measures solar electricity generated and electricity used
Ownership of Renewable Energy Credits - Madison Gas & Electric
WEBSITE: http://www.mge.com/home/rates/cleanpower.htm
UTILITIES: Madison Gas & Electric Co,
LAST UPDATE: 07/13/2015

INCENTIVE NAME: Renewable Energy Sales Tax Exemptions
CATEGORY: Financial Incentive
TYPE: Sales Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI62F
DETAILS:
Incentive Amount - 100% exemption from sales and use tax for eligible purchases
Maximum Incentive - None
Equipment Requirements - Solar, wind, and anaerobic digesters must be capable of producing at least 200 watts of alternating current or 600 British thermal units per day
LAST UPDATE: 07/13/2015

INCENTIVE NAME: River Falls Municipal Utilities - Distributed Solar Tariff
CATEGORY: Financial Incentive
TYPE: Performance-Based Incentive
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: WI70F
DETAILS:
Incentive Amount - $0.30/kWh
Terms - Buyback rate is available for 10 years; $1/month metering charge
Eligible System Size - Up to 4 kW
Ownership of Renewable Energy Credits - WPPI Energy
WEBSITE: http://www.rfcity.org/index.aspx?nid=698
UTILITIES: City of River Falls,
LAST UPDATE: 07/08/2015

INCENTIVE NAME: River Falls Municipal Utilities - Renewable Energy Finance Program
CATEGORY: Financial Incentive
TYPE: PACE Financing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: WI82F
DETAILS:
Terms - Loan amounts from $2,500 to $50,000 per property
Loan may provide up to 100% of project cost at 4% interest rate
Loan length: 5-20 years.
WEBSITE: http://www.rfcity.org/index.aspx?nid=679
UTILITIES: City of River Falls,
LAST UPDATE: 06/25/2015

INCENTIVE NAME: Energy Efficiency Standard for Focus on Energy
CATEGORY: Regulatory Policy
TYPE: Energy Efficiency Resource Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: WI17R
DETAILS:
Electric Sales Reduction - See DSIRE Focus on Energy Page
Natural Gas Sales Reduction - See DSIRE Focus on Energy Page
Rate Impact Parameters - See DSIRE Focus on Energy Page
LAST UPDATE: 01/26/2016

INCENTIVE NAME: City of Milwaukee - Milwaukee Shines Solar Financing
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: WI102F
DETAILS:
Maximum Loan - $20,000
Loan Term - Interest Rate Maximum: Prime + 2.25%
Interest Rate Minimum: Prime + 1.5%
Loan Length: 15 year maximum
BUDGET: $2 million
WEBSITE: http://city.milwaukee.gov/MilwaukeeShines#.VRw1e-G86W4
LAST UPDATE: 04/01/2015