Wisconsin Solar Panels

Wisconsin’s Property Tax Exemption allows homeowners to exclude the added value of renewable energy systems from their property tax assessment. When you install a qualifying solar, wind, biogas, or synthetic gas energy system, the increased value it adds to your home won’t increase your property taxes. This exemption applies to the equipment and components that go beyond what a conventional energy system would include, helping you save money each year on your property tax bill.

To qualify for this exemption, you’ll need to complete Form PR-303 and submit it to your local assessor by March 1st, along with supporting documents like energy system specifications, manufacturer information, and capacity details. The exemption covers systems used for electrical generation, space heating, water heating, or other energy purposes. Keep in mind that only the renewable energy components qualify—equipment that would be part of a standard conventional system is not included in the exemption. This is an ongoing annual benefit that continues as long as you own the system and your home.

Wisconsin’s Sales Tax Exemption eliminates the state’s 5% sales tax on qualifying solar energy equipment and the electricity it produces. This exemption applies to solar products that generate at least 200 watts of alternating current or 600 British thermal units (BTUs) per day. For a typical residential solar installation costing $25,000, this exemption saves homeowners approximately $1,250 in sales tax at the time of purchase.

To qualify, your solar equipment must meet specific technical requirements. Photovoltaic systems must have a standard test condition output rating of at least 250 watts of direct current and produce alternating current (typically through an inverter). The exemption covers solar panels, inverters, mounting hardware, and tracking equipment. It also extends to the electricity your system produces when sold directly to consumers, though this typically applies more to commercial operations than residential installations.

The exemption is claimed at the point of sale, so you’ll see the savings immediately when purchasing your system. If your contractor is installing equipment that becomes part of your real property, they can purchase the components tax-free and pass those savings to you. There are no application deadlines or sunset dates—this exemption remains available as long as the state statute is in effect. Keep in mind that this exemption only applies to state sales tax and doesn’t affect any local taxes that may apply in your area.

Focus on Energy is Wisconsin’s statewide energy efficiency and renewable energy program that offers cash rebates to homeowners who install solar electric (photovoltaic) systems. This program helps offset the upfront costs of going solar, making clean energy more accessible for Wisconsin residents. Single-family homeowners can receive a $300 rebate per system, and those living in eligible rural ZIP codes can receive an additional $300 bonus, bringing the total potential rebate to $600.

To qualify, your home must be served by a participating Wisconsin electric utility, and your solar system must meet specific technical requirements: at least 0.5 kW capacity, grid-tied installation, panels oriented within 135 degrees of due south with a tilt between 5-50 degrees, and less than 15% shading. The system must use equipment from Focus on Energy’s qualified equipment lists and be installed by a licensed professional contractor. You’ll need to complete an online reservation application before installation to reserve your rebate funds. For systems installed between July 1 and December 31, 2025, applications must be submitted within 60 days of installation, no later than January 31, 2026. Funding is limited and distributed on a first-come, first-served basis each year, so early application is recommended.

Net metering in Wisconsin allows you to receive credits on your electric bill for the excess solar energy your system sends back to the grid. How these credits work depends on your utility company and whether you produce more energy than you use each month.

For Wisconsin Electric Power (We Energies) and Alliant Energy customers, you’ll receive full retail rate credits (typically 11-15 cents per kWh) for solar energy that offsets your monthly usage. Any excess energy beyond what you use in a month earns credits at a lower avoided cost rate of approximately 3-7 cents per kWh, which rolls over month-to-month as a dollar amount. Once your accumulated credits exceed $100, you’ll receive a check payment. If you’re on a time-of-use rate plan, your energy purchases and sales are netted separately during peak and off-peak periods.

Madison Gas & Electric (MGE) customers receive full retail rate credits during their first year. After that, if you’re a “net purchaser” (consuming more from the grid than you export over 12 months), you’ll continue receiving full retail rate credits through 1:1 net metering. However, if you become a “net seller” (exporting more than you consume), excess monthly production will be credited at the lower avoided cost rate of approximately 3.8-4.3 cents per kWh. Your status as a net purchaser or net seller is evaluated monthly on a rolling 12-month basis. Like other utilities, you can request payment when credits exceed $100.

Net metering is available to solar customers across Wisconsin, though the specific terms vary by utility provider. There are no application deadlines, and the program remains available to new solar customers. Understanding your utility’s specific net metering structure will help you maximize the financial benefits of your solar investment.