Wisconsin Solar Panels

Starting January 2026, Focus on Energy — Wisconsin’s statewide energy efficiency and renewable energy program — increased its residential rooftop solar rebate from a flat $300 per system to $600 per kilowatt (kW) of installed capacity, up to a maximum of $2,400 per system. This increase was made in direct response to the rollback of federal residential solar tax incentives. Funding is limited and awarded on a first-come, first-served basis, so applying early in the program year is strongly recommended.

To qualify, your system must be installed at a residential property (new or existing construction), have a capacity of at least 0.5 kWDC, be oriented within 135 degrees of due south, have a panel tilt between 5–50 degrees, and have less than 15% obstacle shading. Systems must be purchased and installed between January 1, 2026 and June 30, 2026 to be eligible under the 2026 program year. Applications must be submitted within 60 days of completed installation, no later than August 31, 2026.

Your installer must be a Focus on Energy Trade Ally — a certified contractor who meets the program’s training and insurance requirements. Only one rebate is paid per residential site per calendar year. Be sure to verify that your utility participates in Focus on Energy before proceeding, as not all Wisconsin utilities are part of the program.

Wisconsin’s Focus on Energy program significantly increased its commercial and non-residential solar rebates for 2026. Non-residential customers can now receive $600 per kW for the first portion of their system (up to $2,400), and then $50 per kW for any additional capacity, up to a total maximum rebate of $25,000. This is a major increase from the previous flat rate of $50 per kW and makes solar more financially accessible for businesses, nonprofits, and other non-residential property owners.

Agricultural producers are eligible for an additional $10,000 on top of the standard non-residential rebate, making this program especially valuable for Wisconsin farms investing in solar energy. As with residential rebates, funding is limited and distributed on a first-come, first-served basis each program year.

Only one rebate is paid per meter per calendar year for non-residential customers. Installers must be Focus on Energy Trade Allies, and all equipment must be new. Applications should be submitted promptly after installation to avoid missing the annual funding cap. Contact Focus on Energy at (800) 762-7077 or visit their website for current program details and to confirm your utility’s participation.

In addition to its solar panel rebates, Focus on Energy offers a $600 rebate for battery storage systems that are paired with a solar installation. This incentive has grown in popularity as Wisconsin homeowners increasingly seek backup power solutions for winter outages and grid reliability events.

The battery storage rebate is available alongside the residential or commercial solar rebate, meaning eligible customers can stack both incentives when installing a combined solar-plus-storage system. The battery must be installed in conjunction with a qualifying solar system to be eligible for this specific rebate under the Focus on Energy program.

As with all Focus on Energy rebates, funding is limited and available on a first-come, first-served basis. Your installer must be a Focus on Energy Trade Ally, and all equipment must be new. Contact Focus on Energy at (800) 762-7077 or visit their website to confirm current availability and program requirements before installation.

Under Wisconsin Statute § 77.54(57m), solar energy systems used to generate electricity or heat are fully exempt from Wisconsin’s 5% state sales tax. This exemption applies to all core system components — including solar panels, inverters, racking hardware, and batteries — providing an immediate upfront savings of 5% on the total equipment cost at the time of purchase.

To qualify, the system must generate at least 200 watts of AC power (the type used by household appliances) or 600 BTUs per day. This threshold is easily met by virtually any standard residential or commercial solar installation. Note that a standalone battery storage system may not qualify for the exemption unless it is sold directly as part of a primary solar panel system.

This exemption is automatic at the point of sale and does not require a separate application — your installer or equipment supplier should apply it when invoicing you. For more details, refer to the Wisconsin Department of Revenue’s Publication 207 on sales tax and renewable energy exemptions, or contact the Department of Revenue directly.

Under Wisconsin Statute § 70.111(18), the added assessed value attributable to a solar energy system is fully exempt from Wisconsin property taxation. This means that even though a solar installation typically increases your home’s market value, your annual property tax bill will not increase as a result of adding solar panels.

To claim this exemption, homeowners must submit documentation to their local assessor using the Wisconsin Department of Revenue’s PR-303 Energy System Exemption Request form. The common filing deadline is March 1 of the assessment year, so it’s important to file promptly after your system is installed. Your solar installer may be able to assist with the necessary system documentation.

This exemption is a powerful long-term financial benefit — over the life of a solar system (typically 25–30 years), avoiding property tax increases on the added home value can save homeowners thousands of dollars. The exemption applies statewide and is not limited by utility territory or income level.

Wisconsin law requires all investor-owned and municipal utilities to offer net metering to customers with solar and other qualifying generation systems. However, Wisconsin does not have a single statewide credit rate — the crediting method, system size limits, and rollover rules vary by utility. Interconnection is governed by Wisconsin Administrative Code Chapter PSC 119, updated effective May 1, 2024. It’s important to review your specific utility’s tariff before installing.

The major utilities operate as follows: Xcel Energy (Northern States Power) offers the strongest policy — retail-rate credits for systems up to 100 kW, with month-to-month rollover and an annual cash-out on January 1. We Energies covers systems up to 300 kW but credits excess generation at the lower avoided cost rate with no month-to-month retail rollover. Wisconsin Power and Light (Alliant Energy) and Wisconsin Public Service (WPS) both cover systems up to 20 kW and credit excess generation at the avoided cost rate, with a check issued when credits exceed $100.

Because net metering policies vary significantly across Wisconsin’s utilities, it’s essential to work with an experienced local installer who understands your specific utility’s rules. Municipal utilities and electric cooperatives may have their own unique policies. Contact your utility directly or visit the Wisconsin Public Service Commission’s website at psc.wi.gov for interconnection guidance and utility-specific tariff information.

Under the federal Residential Clean Energy Credit (IRS Section 25D), as updated by the Inflation Reduction Act, homeowners can claim a 30% tax credit for qualifying battery storage systems with a capacity of 3 kilowatt-hours (kWh) or greater. Importantly, this credit applies to standalone battery storage systems — batteries do not need to be paired with solar panels to qualify. This credit is available for systems placed in service through December 31, 2032.

Eligible costs include the battery unit itself, inverters, wiring, mounting hardware, and labor costs for on-site installation. The 30% credit is applied directly against your federal income tax liability, making it one of the most valuable incentives available for battery storage in Wisconsin in 2026, particularly given the expiration of the residential solar ITC.

To claim the credit, file IRS Form 5695 with your federal tax return for the year the system is placed in service. Note that this is a non-refundable credit — it can reduce your tax liability to zero but will not result in a refund for any excess amount (though unused credits may be carried forward). Consult a tax professional to confirm your eligibility and maximize your benefit.

The Milwaukee Shines program is a City of Milwaukee initiative designed to accelerate solar adoption in the Milwaukee area. Among its offerings is a low-interest solar loan program that provides up to $2 million in total loan funding for eligible Milwaukee homeowners. Loans range from $1,000 to $20,000, with repayment terms of up to 15 years and a fixed interest rate as low as prime + 1.50%.

The program is available to City of Milwaukee homeowners of 1–3 unit, owner-occupied residential properties. In addition to financing, Milwaukee Shines also organizes group-buy programs that leverage collective purchasing power to negotiate lower equipment and installation costs for participating homeowners — a benefit that can meaningfully reduce the upfront cost of going solar.

To apply or learn more about current loan rates and availability, visit the City of Milwaukee’s official program page or contact the Milwaukee Department of Neighborhood Services. This program is specifically for Milwaukee residents and is separate from the statewide Focus on Energy rebate program — eligible homeowners may be able to take advantage of both.

The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses that invest in renewable energy systems, including solar. Grants can cover up to 50% of eligible project costs, making this one of the most generous solar incentives available to qualifying Wisconsin applicants. To be eligible, the business or farm must be located in a rural area with a population of 50,000 or less.

Eligible applicants include farmers, ranchers, and rural small business owners. Eligible costs include solar PV equipment, installation labor, and related infrastructure. Both new solar installations and energy efficiency improvements may qualify. Applications are accepted on a rolling basis, but funding is competitive and subject to annual appropriations, so applying early is advisable.

Wisconsin agricultural producers can stack REAP grants with the Focus on Energy agricultural rebate (up to an additional $10,000) for significant combined savings. To apply, contact your local USDA Rural Development state office in Wisconsin or visit the USDA Rural Development website for current application guidelines, deadlines, and funding availability.