Incentives for Home Solar in Wisconsin Rapids, WI and Beyond
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Solar Power Incentives in Wisconsin
State and federal solar incentives can significantly reduce the cost of installing solar in Wisconsin. Available programs vary by project type and organization, including businesses, nonprofits, public institutions, and homeowners. This page outlines the major incentives currently available and explains who can take advantage of each, helping you understand how solar incentives may apply to your project.
Commercial & For-Profit Entities Solar Incentives:
State and Federal incentives speed up your cost recovery for an even stronger ROI. Additional solar grants are available depending on your business sector.
Federal Investment Tax Credit (ITC) – 30%
For Businesses / Commercial / For-profit entities, solar installations qualify for the Investment Tax Credit (ITC), which lowers your federal income tax owed by the exact dollar amount of the credit. Companies that go solar qualify for an Investment Tax Credit (ITC). This credit allows companies to directly reduce their federal tax liability on a dollar-for-dollar basis. Should the tax credit amount be greater than the taxes owed, the excess credit can be carried forward for up to 20 years.
Carryforward: If the credit exceeds your tax liability for the year, it can be rolled forward into future tax years for up to 20 years.
Direct Pay: Non-taxable entities (non-profits, municipalities, tribal entities) can now receive this credit as a direct cash payment from the IRS.
Important Deadlines:
Recent legislation has implemented new deadlines that commercial solar projects must meet to qualify for the full 30% ITC.
Projects starting construction BEFORE July 4, 2026:
You generally have 4 years to complete the project and place it in service while retaining full eligibility.
Projects starting construction AFTER July 4, 2026:
Must be placed in service by December 31, 2027.
After December 31, 2027:
The ITC for commercial solar is eliminated for projects that did not begin construction before July 4, 2026.
Foreign Entities of Concern (FEOC) rules:
Starting in 2026, equipment sourced from certain foreign entities may affect eligibility for tax credits.
Bottom Line: To avoid rushing against a hard 2027 deadline, we strongly recommend starting your project early in 2026. Contact us today to learn more: (715) 223-0418
100% Bonus Depreciation (MACRS)
For commercial solar systems, the 100% bonus depreciation or special depreciation allowance allows a business to immediately deduct the entire eligible cost of the system from its taxable income in the first year it is operational. This incentive can be combined with the federal Investment Tax Credit (ITC) for significant tax savings.
Solar Tax Credit Transferability
Key Aspects of Commercial Solar Tax Credit Transferability
Eligibility: The transferability provision applies to a range of clean energy credits, including the Section 48 Energy Investment Tax Credit (ITC) and Section 45 Renewable Electricity Production Tax Credit (PTC).
Mechanism: Project owners (sellers) can transfer all or a portion of their eligible credits to an unrelated taxpayer (buyer) in exchange for cash. This cash is treated as tax-exempt income for the seller, and the buyer cannot deduct the purchase price.
Purpose: The goal is to simplify project financing. Historically, developers without sufficient tax liability had to use complex “tax equity” structures to monetize the credits; transferability offers a more streamlined alternative.
Focus on Energy (FOE) Rebates
For Commercial solar projects, Focus on Energy offers incentives of up to $25,000 for businesses and up to $35,000 for agricultural producers. As a Focus on Energy Trade Ally, Northwind Solar will help you navigate the process of successfully obtaining this incentive for your project.
Domestic Content Bonus
Under the Inflation Reduction Act (IRA), the domestic content bonus credit is a 10% investment tax credit for utilizing domestically manufactured components within a project. To qualify for this bonus tax credit, a certain percentage of these components must be produced in the U.S.
Northwind’s Approach: We work with top-tier American manufacturers to help clients qualify for this bonus whenever feasible.
Wisconsin State Sales Tax Exemption
State Sales Tax Exemption: Wisconsin holds a 100% exemption from sales and use tax for eligible purchases of your solar electric system.
GRANT: USDA Rural Energy for America Program (REAP)
Offers an annual grant for rural businesses and agricultural properties that can pay up to 50% of the installed system cost for eligible projects. Northwind Solar can assist with your grant application. Northwind Solar will help pre-qualify you for this grant program prior to grant writing.
Nonprofits & Tax-Exempt Entities Solar Incentives:
Nonprofits and tax-exempt organizations can access several solar incentives designed to make solar more affordable, even without traditional tax liability. The incentives below outline federal, state, and grant programs that may apply to eligible nonprofit and public-sector solar projects in Wisconsin.
30% Elective Pay (Direct Pay)
Non-Taxable Entities can still take advantage of the Federal ITC through the 30% Elective Pay. The Elective Pay incentive, aka Direct Pay, allows tax-exempt organizations to receive a payment equal to the full value of the Investment Tax Credit (ITC) and its bonus credits.
Incentive Amount: 30% rebate based on the total solar installation costs.
Bonus Credits: Projects may qualify for additional bonus credits (10–20%) if they meet specific criteria, such as using domestic content, being located in a designated “energy community” or low-income community, potentially bringing the total payment to 50% or more of the project cost.
Eligible Projects: The provision applies to clean energy technologies, including solar panels, battery storage systems, EV charging infrastructure and more.
Focus on Energy (FOE) Rebates
For Commercial solar projects, Focus on Energy offers incentives of up to $25,000 for businesses and up to $35,000 for agricultural producers. As a Focus on Energy Trade Ally, Northwind Solar will help you navigate the process of successfully obtaining this incentive for your project.
Domestic Content Bonus
Under the Inflation Reduction Act (IRA), the domestic content bonus credit is a 10% investment tax credit for utilizing domestically manufactured components within a project. To qualify for this bonus tax credit, a certain percentage of these components must be produced in the U.S.
Northwind’s Approach: We work with top-tier American manufacturers to help clients qualify for this bonus whenever feasible.
Wisconsin State Sales Tax Exemption
Wisconsin holds a 100% exemption from sales and use tax for eligible purchases of your solar electric system.
GRANT: Solar for Good
RENEW Wisconsin offers the Solar for Good grant program to help non-profit organizations go solar. Grant applications are accepted in the Spring and Fall.
GRANT: Solar on Schools
The Solar on Schools grant provides public WI K–12 schools and colleges access to an in-kind module grant, valued up to $20,000. Applicants are eligible to apply for one grant per district installing solar. Grant applicants must demonstrate project development and the ability to install their PV system within 12 months of being awarded the grant.
Northwind Solar has helped many Wisconsin Schools take advanage of this grant. Contact us today to lean more.
Wisconsin Homeowner Solar Incentives
Wisconsin homeowners may be eligible for solar incentives that help reduce the cost of installing solar and related technologies. The incentives below highlight state programs, group buy opportunities, and other options that may apply to residential solar projects.
Focus on Energy (FOE) Residential Solar Rebate
Beginning in 2026, Focus on Energy is updating their solar rebate offerings so residential solar systems will be eligible to save $600 per kW, up to $2,400.
Northwind Solar is an approved Focus on Energy Trade Ally.
Wisconsin State Sales Tax Exemption
Wisconsin holds a 100% exemption from sales and use tax for eligible purchases of your solar electric system.
Solar Group Buy Program
Northwind Solar is proud to continue as the official installer for the Grow Solar Central Wisconsin Group Buy Program, in partnership with the Midwest Renewable Energy Association (MREA). This initiative helps homeowners, nonprofits, and businesses in Portage, Marathon, Waushara, Waupaca, Wood, and Lincoln Counties access solar energy at below-market rates through a limited-time group purchasing opportunity.
By supporting community programs like the Solar Group Buy, Northwind Solar demonstrates our commitment to making affordable, high-quality solar solutions accessible to our local community and helping you achieve your solar goals.
Get alerted when the next Solar Group Buy Program is open for participation. Subscribe to our Newsletter!
Maximizing Your Savings With Multiple Incentives
One of the most effective ways to make home solar in Wisconsin Rapids, WI, and the surrounding areas affordable is by combining multiple incentives. In addition to Focus on Energy rebates, homeowners can take advantage of federal tax credits, state sales tax exemptions, and other local programs. Each incentive contributes to lowering the overall cost, creating a more financially accessible path to solar adoption.
Northwind Solar helps you evaluate all available options to maximize your savings. For example, customers using solar in Waupaca, WI, or the neighboring communities often combine Focus on Energy rebates with the federal solar incentives that apply to qualified installations. When layered together, these programs can significantly reduce your out-of-pocket costs, making solar a smart financial choice. Our team ensures you understand the current benefits, eligibility requirements, updated timelines, and application processes for each incentive so that nothing is overlooked.
Maximizing savings also involves planning your installation strategically. Northwind Solar works with you to design a system that aligns with incentive thresholds, potential energy production, and your home’s electrical infrastructure. By optimizing both system performance and financial benefits, homeowners installing home solar in Wisconsin Rapids, WI or the surrounding communities can achieve the greatest return on investment while enjoying clean, reliable energy for decades.
Step-by-Step Guide to Applying for Incentives
Applying for solar incentives can seem complicated, but Northwind Solar makes the process simple. Step one is to schedule a consultation with our team. During this meeting, we assess your energy needs, roof layout, and system size to determine which incentives apply to the installation of home solar in Wisconsin Rapids, WI or the surrounding areas. Understanding the incentives early allows us to incorporate them into your project planning and budget accurately.
Step two involves preparing all necessary documentation for rebate and tax credit applications. Northwind Solar guides you through collecting utility bills, property information, and installation estimates. For Focus on Energy rebates and other local incentives, we submit the applications directly to the program administrators, reducing the hassle for homeowners and ensuring compliance with all requirements.
The third step is system installation. Once approved for incentives, Northwind Solar is the top source for solar in Waupaca, WI. Our team installs these systems efficiently and according to the highest quality standards. After installation, we verify that your system meets all program requirements, completing any inspections and documentation needed for final rebate disbursement. Our team also helps you claim federal tax credits and ensures your paperwork is submitted properly to maximize your benefits for going solar in Waupaca, WI, and beyond.
Finally, Northwind Solar provides ongoing support and monitoring. Once you're set up with the home solar Wisconsin Rapids, WI, families rely on, we track performance, troubleshoot any issues, and answer questions about continued eligibility for incentives or new programs. Our goal is to make the process seamless from consultation through installation and beyond, helping you enjoy the full financial and environmental benefits of solar energy.
Taking the Next Step
Research your options: You can start your research on our Solar Benefits page and hear from our customers on our Reviews page. You can also contact Northwind Solar by calling us at (715) 223-0418
or by using our online form.
Review benefits and key considerations: As with any investment, it is a good idea to understand the key considerations and benefits of solar power. Such due diligence will help you throughout the decision-making process. Our company is ready to assist you in this endeavor with a free consultation.
Contact Northwind Solar: Use our online form to request an estimate, describe your needs and interests, and submit any questions you might have about going solar in Waupaca, WI and around Central Wisconsin. We will contact you to discuss the solution that is right for you. You can also contact us by calling (715) 223-0418.
Disclaimer
Northwind Solar provides this information for educational purposes. We are solar experts, not tax advisors. Please consult your CPA or tax professional to confirm how these incentives apply to your specific tax situation.
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