The federal home credit is gone. The 2025 federal tax law ended the residential clean energy credit (Section 25D). The IRS says the cost counts as spent when installation is completed. If your system was finished after December 31, 2025, you cannot claim it, even if you paid in 2025. That also covers home batteries.
The state rebate got bigger. Focus on Energy now pays $600 per kW of solar on a home, up to $2,400, for systems purchased and installed in 2026. That replaced a flat $300 rebate. Your electric utility must take part in Focus on Energy. See our 2026 Focus on Energy rebate guide for the rules.
Utility rates keep climbing. Every kWh your panels make is a kWh you don't buy. Regulators approved Alliant Energy (WPL) increases that raise a typical home bill about $9.57 a month in 2026 and $17.45 a month in 2027, compared with 2025. Wisconsin Public Service (WPS) asked for base electric increases of 6.3% in 2027 and 3.5% in 2028. We Energies asked for 4.7% and 4.5%. Those are requests, not final decisions.
What did not change: solar panels still make the most power from April through September. Most systems still last for decades. Your own electric use, roof and utility still decide the payback more than any single incentive. Learn more on our solar incentives page.