State-Sponsored Incentives for Residential & Commercial Solar
A number of state governments provide incentives to individuals and businesses who get solar. In some cases, these programs can significantly reduce the up-front costs associated with purchasing a solar energy system. Below, you'll find information on the programs available in Wisconsin. (Also, don't forget: when you install a solar energy system, you can claim a 30% tax credit from the federal government and use accelerated depreciation rules.
For a complete listing of solar energy professionals in your area, visit our Wisconsin Solar Directory.
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Wisconsin has had net-metering rules in place since 1992. Accordingly, all investor-owned utilities and all municipal utilities must provide net-metering agreements to customers that generate electricity with systems up to 20 kW in size. While some variation does exist across different utilities, a customer’s net excess generation (NEG) is typically credited to their account at the utility’s retail rate for electricity. If NEG credit is more than 25$ in any given month, the utility is required to issue a check for the given amount.
Somehow, in 1999, Wisconsin was able to implement a renewables portfolio standard (RPS) without conducting a comprehensive restructuring of their electricity utilities. Put simply, the state’s RPS outlines various minimum standards for different utilities to meet statewide goals for renewable power. The overarching objective is to by 2015 meet at least 10% of electricity demand with renewable sources. To meet this goal, the state has established a renewable resource credit program, which enables utilities to meet targets by purchasing renewable resource credits (RRCs). Note that similar programs exist in other states, but these credits are most commonly called renewable energy credits (RECs).
A number of Wisconsin utilities offer production incentives. The Madison Gas & Electric (MGE) Clean Power Partner Solar Buyback Program provides a $0.25 per kilowatt incentive to all of its customers with PV systems up to 10 kW in size. Essentially MGE buys the power generated by your PV system and resells through its Green Power Tomorrow program at a nominal ($0.01/kWh) mark up.
Xcel Energy’s Renewable Energy Buy-Back Rates works almost exactly like the one just described. After signing a 10-year interconnection agreement, customers receive a per kilowatt-hour incentive for 100% of their system’s output. Systems must be at least 20 kW in size, however.
Wisconsin also makes grant funds available through their Focus on Energy program. Financed through a public benefits fund, the rebate program covers solar technologies, although amounts vary by sector and technology. Solar hot water systems are eligible for $7.20 - $18/therm/yr up to a maximum incentive of 25% of the system's cost. A PV system would earn $1.00/annual kWh for up to either 25% of costs or $50,000, whichever is less.
As for taxes, Wisconsin offers a 100% property tax exemption for all renewable-energy systems. This means you can invest in PV panels or a wind turbine without increasing your property tax liability. You can download an application (PDF) from the Wisconsin Department of Revenue. The state also offers a 100% sales tax exemption on renewable energy equipment.
Updated 7/9/10 Wisconsin: Residential Solar Incentives |
