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2019 Policy Grade

C

Avg. Yearly Savings

$788

Congratulations! You've found the ultimate guide to going solar in Wisconsin

2019 Policy Grade

C

Avg. Savings/year

$788

Your 2019 guide to getting solar panels for your home in Wisconsin

This page is a complete guide to the complicated and sometimes confusing process of installing solar panels on your Wisconsin home. Since there's a lot to consider, we've separated the page into sections to help you find what you are looking for. If you find this page useful, please share it with someone who might also find it interesting!

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** What's new for 2019 **

Some may call it Dairyland, but folks here in the Badger State know that Wisconsin has a whole lot more to offer than its cheese. From the mighty Mississippi in the west to big ol’ Lake Superior in the north and everything in between, Wisconsin offers some of the most beautiful environments anywhere in the nation (and a few-thousand more lakes than that state just a little bit to the west). An astonishing 46% of the state is covered by forest, including the 1.5 million acre Chequamegon-Nicolet National Forest. Needless to say, Wisconsin has a great deal to protect by promoting green energy. So how is solar policy doing out here? Let’s look.

Questions? Our network of solar experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page. You can get discounted on-grid pricing as low as $4,500/kW! This is paired with the Wisconsin solar incentives you see below.

The Solar Strategy section is focused on the 3 ways of paying for solar in Wisconsin, so you can decide which is best for you. We've created a tool that asks you a few questions and recommends whether you should pursue a solar lease, loan, or outright purchase. Then, we provide detailed analysis of how each works.

The Policy Information section contains all our latest research on the rules set by lawmakers and the Public Utilities Commission, which determine how easy it is to go solar in Wisconsin. These policies and rules govern everything from renewable energy mandates to interconnection, and have a huge effect on the viability of solar.

Finally, the Solar Incentives section includes information about money-back rebates and grants, tax credits, and tax exemptions for going solar in Wisconsin.

Click any of the boxes below to go to that section of the page, or scroll down to read the page in order.

Your Solar Strategy in Wisconsin

Figuring out the best way to go solar in Wisconsin can be a little daunting. From loans and leases to power-purchase agreements, there are a lot of options out there. To help you pick the one that might be best, we've created the handy decision tool below.

We'll ask you a few simple questions about you and your home. Once you're done, we'll recommend a good option. Further down this page, we provide cost estimates and example return-on-investment calculations for all the various options:

How should you pay for solar?

Use our decision tool to find out!

How to pay for solar panels in Wisconsin

The chart above shows the 25-year returns for an investment in solar whether you choose to purchase a system with cash or pay over time with a loan. All those bars going in different directions might look a little complicated, so let's break it down:

The green bars show the return if you pay up front for a 5-kW solar system. As you can see, there's a big payment (negative) in year 1, which gets slowly reduced over time. The green bars cross the "$0" line at year 13, which is when the system will have paid back your initial investment with electricity savings. Then, our example goes to year 25 (which is when most solar panel warranties end), where you'll end up with just about $19,000 in total profits. Not bad! That's because Wisconsinites enjoy a mix of above-average energy prices and enough daily sun to make the electricity savings substantial.

The orange bars, on the other hand, show what happens if you take a Home-Equity Line of Credit (HELOC) to pay for the same 5-kW system. You don't put any money down, but you do get the 30% Federal solar tax credit, meaning you actually come out several thousand dollars ahead in year 1. The bars dip below the $0 line after 6 years, because your loan payments (over a 15-year term) will exceed your energy savings by a little each year. Still, once you pay off the loan, the savings start stacking up quickly. In the end, you'll come out thousands of dollars ahead over the 25-year estimate.

Finally, the blue bars represent a similar HELOC option, but for a smaller, 2-kW solar system. This size system is great if you only have a little equity, and it still saves you thousands in the long term, while reducing the amount of CO2 pollution you're responsible for. The loan size is smaller and so are the first-year windfall and final profits, but if you love the idea of solar, this is a great way to go.

Keep in mind that these numbers are estimated for Wisconsin residents who qualify for rebates though the state's Focus on Energy program, which serves most—but not all—of the state. The best way to see if you qualify for the rebates is to connect with one of our partners in Wisconsin to get help with paperwork and make sure you get all the solar incentive money that you can.

Read on to find out more about each option!

How much can you save with solar?

Find out

Option 1: Paying cash for solar

Paying up front used to be the only way to get panels on your roof, and it's still the option that allows you the most control. But it isn't the best option from a percentage return on investment standpoint—that award goes to the solar loan.

Still, an outright purchase returns the most money over time, because you own the system from day one and reap all the benefits—the state rebate, the Federal solar tax credit, and some nice energy bill savings.

In our example, you put down $17,600, but by the end of year 1, that tax credit and the energy savings will erase a bunch of it. Over 25 years, your system will have produced almost $19,000 in income.

Here’s an example of how the numbers work for a purchase of a 5-kW rooftop solar system in Wisconsin:

  • Installing a typical 5-kW solar system should start at about $17,600 after the Focus on Energy rebate.
  • The Feds offer a tax credit of 30% of out-of-pocket costs, so you'll get $4,560 back next April. Note: you can take the credit over two years if you don't owe $4,560 in Federal taxes this year.
  • Then there's your first-year energy savings. That's another $819, and it brings the cost after 1 year to just $12,221.
  • With all the energy bill savings rolling in, your system will pay itself back after 13 years. Once that happens, you’ll be seeing over $1,200 per year in savings until the end of your system’s life.
  • When all is said and done, our 25-year estimate shows a total net profit of $18,860 with an internal rate of return of 7.9%. That's basically the same as a high-performing stock index fund, and it has the added benefit of helping the environment!
  • On top of those returns, your home's value just increased by $16,380, too (your expected electricity savings over 20 years)!
  • And speaking of doing good for the environment... your system will create some green for the earth by not using electricity from fossil-fuels. In fact, the energy you’re not using has the carbon equivalent of planting 106 trees a year, every year your solar power system is humming.
Keep in mind, the numbers above are based on an average home in Wisconsin. If you're ready for a custom quote for a solar panel system, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.

Option 2: Using a loan to pay for solar

This is where we tell you that taking a loan for solar panels is a no-brainer, because it means investing in an income-generating asset. It's true! That's because the state gets a nice amount of sunshine, so even without huge incentives, it's enough to make solar worthwhile, generating a good deal of income for you after you pay your loan off.

Here's the important stuff:

As you can see from the chart above, you'll start out with a big windfall, because with a loan, you're not putting any money down, and you get the federal tax credit just like if you paid $17,600 up front for your system. You'll come out $3,709 ahead after the first year! In the 14 years that follow, your loan payments will actually cost a little more than the money you'll be saving in electricity, but just think of it like a monthly deposit into a savings account.

The rest of our estimate might look like a see-saw, because you start out with a windfall, drop down into "decent-sized investment" territory, and then rocket up again after the loan is paid off. That's when the solar "savings account" will pay dividends. You'll be saving tons of money every year because you'll own the system outright. At the end of our 25-year example, you'll be $11,408 to the good, which is great for an investment where you put nothing down!

A solar purchase like this will make sense for you if the following is true about you and your current situation:

  • You can get a home-equity line of credit (HELOC) for $17,600 with a fixed rate of 5% or lower and a 15-year repayment period.
  • You have an appetite for making a little money with a long-term investment, while also producing benefits for the environment.

Here’s how the numbers pencil out for a Wisconsin solar purchase with a HELOC:

  • Installing a typical 5-kW solar system should start at about $17,600, after the state rebate. That's how big your loan will need to be to cover it.
  • The electricity bill savings in the first year of operation will total $819, but your loan payments will be $1,670, for a difference of $851, or about $71 per month.
  • But here comes the tax credit! Because you've technically "paid" for the system with your loan, you'll get the Federal tax credit of 30% of system costs, or $4,560! Even after you make those loan payments, you'll end up with an extra $3,709 at the end of the first year.
  • When your loan’s paid off in year 15, you’ll see over $1,400 per year in savings until the end of your system’s life.
  • For our 25-year estimate, you'll see pretty nice returns, to the tune of $11,408 after all the payments. That's a huge amount of money for a zero-down investment!
  • Finally, the environmental benefits cannot be overstated. Operating your system will take as much carbon out of the air as planting 106 trees every year!
Keep in mind, the numbers above are based on an average home in Wisconsin. If you're ready for a custom quote for a solar loan, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.

Option 3: Buying the electricity, not the panels with a Power Purchase Agreement (PPA)

Wisconsin does not offer solar Power Purchase Agreements or leases. Perhaps it would be a good idea to contact a solar advocacy organization and ask them to fight for solar in your state!

How much can you save with solar?

Find out

Wisconsin Solar Policy Information

Ever wonder why solar seems to be everywhere in some states, but not in others? We did too.

State legislatures and public utilities commissions can enact rules to make solar power accessible for everyone. Favorable rules explain why some of the cloudiest states—New York, New Jersey, and Connecticut, are doing so well with solar, and yet some of those with the most natural solar resources—like Alabama, Mississippi, and Georgia—are doing so poorly.

Below is important information about the public policy, rules, and economic reasons that affect your ability to go solar here in Wisconsin:

Wisconsin's Renewable Portfolio Standard

10% by 2015 (met)

Grade: D

Wisconsin's Renewable Portfolio Standard grade

A Renewables Portfolio Standard (“RPS”) is a law requiring a certain percentage of a state's energy production comes from renewable resources by a target date in the future. Wisconsin was on board with a statewide RPS, under which 10% of statewide electricity production must have come from renewable sources by 2015, otherwise the utility companies needed to pay massive fees.

It's laudable that Wisconsin had such an early goal, but the state easily mat the 10% requirement way back in 2013, and there are no future plans to increase that 10% requirement.

A strong RPS with high targets is the core of all good renewable energy policy. Without mandatory renewable energy production levels, utility companies have no motivation to promote conversion to renewable energy sources like residential solar power system. With a strong RPS, it becomes cheaper for the utilities to help fund your solar power system than to pay penalties for missing RPS goals. That’s when you really see incentives kick in.

In short, a strong RPS is generally the single most effective law that state legislators can implement to promote renewable energy. Without a new commitment to a stronger RPS, Wisconsin will not be a solar leader in the future.

Learn more about Renewable Portfolio Standards

Wisconsin's RPS solar carve out

None

Grade: F

Wisconsin's Solar Carve-out grade

The best states for solar have not only aggressive RPS goals, but also specific goals (i.e. "carve-outs") for solar use. A solar carve-out is a great way to get utility companies even more interested in helping homeowners get solar, but Wisconsin lags behind the best solar states in this category.

Learn more about Solar Carve-outs

Wisconsin Electricity Prices

$0.15/kWh

Grade: B

Wisconsin's Electricity cost grade

Wisconsin pays an average of 15 cents per kilowatt-hour (“kWh”) of electricity, and your electric bills probably cost you about $800 a year. Energy costs in the Badger State are a bit higher the national average of 13.6 cents/kWh, but still pretty cheap. Too cheap, in fact.

Electricity is relatively inexpensive because most of it still comes from dangerous amounts of fossil fuels. The cost of those fossil fuels in dollars and cents may be low (for now), but the environmental costs are astronomically high. Switching to solar power already saves you money, but when scarcity and environmental costs drive up fossil-fuel based energy prices, the early switch to solar power is going to be saving you piles and piles of money. You can eliminate that $800 yearly bill and live like a Big Cheese!

Find out why electricity prices matter

Wisconsin Net Metering

Many utilities offer

Grade: D

Wisconsin's Net Metering grade

Net metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume. If you produce a surplus, you get credit for it on your bill.

Net metering in Wisconsin is a bit scattered, but generally strong for residential customers. All investor-owned and municipal utilities are required to offer a net metering program, but electric cooperatives are exempt from the requirement. So, most utilities offer net metering, but there is a bit of variation among how the programs are implemented. Generally, all surplus kWh are credited at your retail electric rate, and applied to the next bill. If credit exceeds $25, the utility must cut you a check for the amount.

One way or another, you’re getting credit for all that extra energy at a pretty decent rate per kWh. Overall we gave net metering in Wisconsin a C because of system size limitations that prevent larger customers from efficiently meeting all on-site needs with renewable energy, and the law’s lack of a safe harbor provision that ensures the utility can’t charge you extra fees for net metering. But for a residential solar power system like yours, net metering is pretty solid here.

Learn more about net metering

Wisconsin Interconnection Rules

Limited

Grade: D

Wisconsin's Interconnection Standards grade

Wisconsin’s interconnection standards are more of a mixed bag. Your residential system is small enough (less than 20 kW) to avoid any fees for reviews or studies. That’s great. Unfortunately, the money saved there will be spent purchasing insurance coverage, and installing a redundant external disconnect switch.

And of course, if you’d like some personalized assistance, get in touch with us and we’ll have an expert contact you in a jiffy.

Learn more about solar interconnection rules

Solar Incentives in Wisconsin

Next to high electricity prices and net metering, solar incentives have traditionally been the most important factor for whether home solar power makes financial sense in a state. In the past, some states with otherwise lousy policy had tremendous incentives that drove down the up-front cost of going solar so much that homeowners could save oodles of money even without net metering or a good RPS.

These days, the big incentive most people can get is the Federal Solar Tax Credit that earns you 30% of your total system costs back after just 1 year. State incentives play less of a role than in the past, but some really good ones are still out there, ready to help homeowners go solar and save money before you know it.

Let's see how Wisconsin measures up:

The availability of state solar incentives for residential solar systems was sourced from the Database of State Incentives for Renewables and Efficiency, utility company websites, and the state public utility commission.

Wisconsin Solar Power Rebates

12% of costs, up to $2,000

Grade: B

Wisconsin's Solar Rebates grade

The statewide Focus on Energy program launched in July, 2012, and is ongoing. If your utility company participates (most of them do), you're eligible for up to a solar rebate of up to 12% of costs with a limit of $2,000 after they install a qualifying solar electric system.

This solar rebate is a great way to help homeowners defray the costs of installation, but this rebate is a little smaller than those in the best solar states. Still, if you're the average homeowner, you might install a 5-kW solar system for about $17,000 and claim the entire $2,000 rebate.

That, combined with the federal solar tax credit, can bring your final costs down to $10,500 even before any energy savings—a pretty good deal if you ask us.

Learn more about solar rebates

Wisconsin Solar Tax Credits

None

Grade: F

Wisconsin's Solar Tax Credits grade

Wisconsin does not offer any tax credits to promote renewable energy.

Learn more about state solar tax credits

Wisconsin Solar Performance Payments

Up to $0.30/kWh

Grade: D

Wisconsin's Solar Performance Payments grade

A couple years back, customers of two Wisconsin utilities were eligible to participate in solar power buyback programs, also known as parallel generation agreements. These are not true performance payments; you continue to purchase electricity from the utility at the normal retail rate, while selling all of the energy produced by your solar power system.

Madison Gas and Electric and River Falls Municipal Utilities have both offered the programs, but in both cases, the programs are "fully subscribed," that is, you can't sign up for them.

This is one of those areas that would be helped by a stronger RPS law in Wisconsin. With some aggressive goals for solar adoption, utility companies would have an incentive to pay homeowners for the solar energy they produce. Without those goals, Wisconsin will continue to lag behind in the solar race.

Learn more about SRECs

Property Tax Exemption

100%

Grade: A

Wisconsin's Solar Property Tax Exemptions grade

Fortunately there are tax exemptions to help bring down the cost of your solar power system. You’re exempt from 100% of the property taxes normally associated with with the big increase in home value you’re going to get from installing a solar power system. (we’ll get to that below).

Sales Tax Exemption

100%

Grade: A

Wisconsin's Solar Sales Tax Exemption grade

With Wisconsin’s sales tax exemption for solar systems, you save 5-5.6% right off the bat.

Learn more about tax exemptions for solar

The consensus on Wisconsin solar power rebates and incentives

Wisconsin is something of a mixed bag when it comes to solar. The statewide rebate program and tax incentives are a good start, but there’s no statewide policy that defines how homeowners should be paid by utilities, making each utility’s policies unique, and not as clear as a strong standard. If the legislature and the governor could agree on a more robust renewable energy standard with a big chunk dedicated to solar electricity generation and better rebates and tax credits, Wisconsin could take its place among the best states for solar. Still, the good policy, especially the RPS and tax exemptions, earn Wisconsin a strong B+. On, Wisconsin!

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Guest
m

I found out yesterday that the rebate for Wisconsin was cut from $600 per kw to 12% of installed system cost, max. $2000. For Me, that CUTS THE REBATE IN HALF, from about $2400 (for 4 kw system) to about $1200 (assuming total cost of around $10k). It just gets worse and worse…………………..

Carol
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Carol

WE Energies in the SE corner of Wisconsin does not encourage producing extra energy. The first year we were on-line with our solar array they converted the extra kilowatts to $ on our time of use bill and by May we had accumulated over $500. In May they converted the $ back to kilowatts and put a tarriff on over-production and sent us a check for $132. This year we aren’t conserving our solar gain, we are using it.

JP
Guest
JP

To Anonymous, posted Feb 24, 2015: You’re not understanding what a tax credit is. Tax credits certainly can be counted as savings. Whether you get a refund from the IRS and/or state or not is based on how much you’ve paid throughout the year. If you chose to pay a lot of taxes on your paychecks, then you are likely to get a refund. If you withheld little, you will probably get a bill. Either way, a tax credit reduces the total you owe. So you’ll get a larger refund or a smaller bill, depending on your situation. The only… Read more »

PMB
Guest
PMB

You keep quoting electrical rates in Wisconsin as being 15 cents per kWh – that is WAY higher than what we are paying here in Wisconsin. I live here and I can tell you first, I am paying 9 cents per kWh. Also, I could sign up for a time of use program and drop it to 5 cents per kWh on off-peak times, 10-11 cents per kWh on peak times. My brother is on a different utility and he is paying 7.8 cents per kWh. These rates are as of October, 2015. Stop saying Wisconsin rates are 15 kWh.… Read more »

Ben Zientara
Admin

Thanks, PMB. We source our data from the US Energy Information Administration (EIA), which reports prices per kWh for all states each month of the year. The EIA publishes averages for all ratepayers in a state, so they include small co-ops and big investor-owned utilities. That said, we try to update our electricity price data once per year, and Wisconsin’s time is coming soon. Glancing casually at the EIA numbers for the year up to August, the average residential rate paid in Wisconsin is 14.38 cents/kWh. That might include delivery charges or other per-kWh add-ons that aren’t part of your… Read more »

D B
Guest
D B

In WE Energies’ coverage, I pay $0.131 per kWh, but it comes out to about $0.18 after all of the additional fees. When I lived in Dodge and Columbia counties, it was right around this point too. I just wanted to give authenticity to Ben’s and Solarpowerrocks.com’s numbers. I would tell you to stop saying energy prices are so low here and that EIA’s collected numbers are on point.

Anonymous
Guest
Anonymous

WPS (Wisconsin Public Service) buy back rates are terrible. In simple terms, they bill at 0.10 and buy at 0.05 (45%-55%). Compare that to MG&E who bills at 0.10 and buys at 0.25. If you want solar in Northern Wisconsin, it seems that your best bet is to buy a battery rather than sell back excess energy to WPS. I really wish they would change this policy to at least buy and the same rate they bill at.

Anonymous
Guest
Anonymous

I have been crunching the numbers really hard recently and ran into your site while researching. I want to point out one small thing about your tax rebate in your cost calculation. The “credit” does not apply to your tax return, it only applys if you actually owe taxes. Will NOT increase your tax return. You cannot count this as a reduction of the cost of the system. Also, depending on which utility you go through, they pay much less for the energy. WPS only pays 5cents (.05) for every kWh while charging you 10 (.1027) for whatever you use… Read more »

Anonymous
Guest
Anonymous

Your pay back computations are based on over inflated estimates. The payback is more like 20 years using reasonable numbers and this doesn’t take into account maintenance and repairs.

Ben Zientara
Admin

Not necessarily. Even if you don’t get any rebates in Wisconsin, the payback time is around 15 years. The reason you’re getting higher numbers might be the way you estimate the change in electricity prices over time. Prices are around $0.15/kWh in Wisconsin right now, but they have traditionally risen by about 3.5% per year over the last 30 years. That adds up to a bigger yearly saving the longer the panels operate. Even if prices go up by only 2% per year, a 5-kW system that costs $22,000 up front still pays itself back in 16 years, even with… Read more »

Anonymous
Guest
Anonymous

The Focus on Energy rebate program is exhausted, just some FYI for anyone looking at that incentive.

Anonymous
Guest
Anonymous

how feasible will solar power be when SRM solar radiation managemnent, SAG stratospheric aerosol geo-engineering,weather modification are blocking the sun?

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