Explaining Wisconsin Solar Incentives: Tax Credits, Rebates, and Grants in 2025
Switching to solar energy in Wisconsin has never been more affordable, thanks to a variety of Wisconsin solar incentives available in 2025. These tax credits, rebates, and grants are designed to help reduce the upfront costs of installing solar energy systems. At Lydon Solar, we’re here to help you navigate the available programs and ensure you maximize your savings on solar energy.
Federal Solar Tax Credit (ITC) for Wisconsin Homeowners and Businesses
The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), allows Wisconsin homeowners and businesses to deduct 30% of the total cost of their solar installation from their federal taxes. This includes everything from solar panels and inverters to installation costs, wiring, and labor.
Eligible Costs for the ITC
The 30% ITC covers:
- Solar panels
- Inverters
- Battery storage
- Wiring and electrical components
- Installation and labor costs
By utilizing the Federal Solar Tax Credit, you can significantly lower the cost of your solar system, making it a smart financial move for your home or business.
Depreciation and Bonus Depreciation for Wisconsin Businesses
For businesses in Wisconsin, the 30% ITC is only the beginning. Businesses can also benefit from depreciation and bonus depreciation on their solar systems, which helps recover a significant portion of the installation costs.
- 85% of project costs can be depreciated over five years using Modified Accelerated Cost Recovery System (MACRS).
- 50% bonus depreciation is available in the first year, providing an immediate tax benefit to offset installation costs.
These incentives make solar energy a great investment for businesses looking to reduce their tax burden.
REAP Grants for Rural Businesses in Wisconsin
The Rural Energy for America Program (REAP) is another valuable incentive for rural businesses in Wisconsin. REAP offers reimbursable grants that cover up to 50% of the project costs for solar installations.
These grants can cover expenses such as:
- Hardware
- Wiring
- Installation costs
REAP grants are a great way for rural businesses to offset the cost of going solar and take advantage of renewable energy savings.
Focus on Energy Wisconsin Solar Rebates
Focus on Energy, Wisconsin’s statewide energy efficiency program, provides cash rebates to homeowners and businesses who install solar power systems. These rebates help reduce the initial installation cost, making solar energy more accessible.
- Homeowners can receive up to $600 for solar installations. ($300 for the installation and an additional $300 for rural zip codes.)
- Businesses can receive $50 per installed kilowatt of solar, with a maximum rebate of $25,000.
At Lydon Solar, we can help you apply for these Wisconsin solar incentives to maximize your savings.
Solar on Schools Grants in Wisconsin
Wisconsin’s Solar on Schools program helps public schools and colleges install solar systems by offering grants for in-kind solar panel donations. Schools can receive grants valued up to $20,000, making it easier for educational institutions to adopt solar energy.
- Smaller systems (under 100 kW) can receive grants for up to 50% of the system size.
- Larger systems (100 kW or more) can receive grants for 50 kW DC.
These grants help schools reduce their energy costs while promoting sustainability, all while lowering their solar installation expenses.
Solar for Good: Nonprofit Solar Grants
Through the Solar for Good initiative, Wisconsin nonprofits can receive donations of solar panels or project grants to reduce the financial barriers to installing solar systems.
Grants include:
- Up to 50% of the panels required for the project, with a value of $25,000 to $50,000 depending on system size.
- Solar canopies with grants starting at $6,000 for 20 kW systems.
These grants help nonprofits reduce their energy costs and make the transition to solar energy more affordable.
Maximize Your Savings with Lydon Solar
At Lydon Solar, we are committed to helping you take full advantage of all the Wisconsin solar incentives available in 2025. We have years of experience working with these programs and can help guide you through the process to ensure you’re getting the best possible savings on your solar installation.
Whether you’re a homeowner, business, or nonprofit, we offer custom solar solutions that meet your needs while maximizing savings. We also partner with top manufacturers, including Enphase, Hoymiles, Solis, and Tesla, to ensure the highest quality equipment and performance for your solar system.
Conclusion: Why Choose Lydon Solar?
When it comes to going solar in Wisconsin, Lydon Solar is your trusted partner. We’re a local solar expert that understands the ins and outs of Wisconsin solar incentives and can help you navigate the available tax credits, rebates, and grants. Let us help you make the switch to solar today, saving you money and reducing your environmental impact.
Contact us now to learn more about solar energy incentives in Wisconsin and how we can help you get started with your solar project!