2025 Solar Incentives Guide for Onalaska, WI - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Onalaska.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2024 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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What Solar Tax Credits, Incentives, and Rebates are Available in Onalaska?
Renewable Energy Sales Tax Exemptions
Renewable Rewards Program
Business - 0-5 kW: $200 per kW
5-10 kW: $1000 + $150 per kW over 5
10-100 kW: $1750 + $125 per kW over 10
100-300 kW: $13000 + $100 per kW over 100
300-500 kW: $33000 + $85 per kW over 300
Biogas, Solar, and Wind Energy Equipment Exemption
Riverland Energy Cooperative - Residential Energy Efficiency Rebate Program
LED Bulb: $1
Occupancy Sensor: $5
LED Exit Sign: $5
LED Fixture: $1 per 800 lumens
Appliance Rebates
Clothes Dryer: $25
Heat Pump Clothes Dryer: $50
Clothes Washer: $25
Dehumidifier: $25
Dishwasher: $25
Refrigerator: $25
Appliance Recycling (Refrigerator/Freezer/Room AC): $25
Water Heaters and Flow Restrictors
Residential High Efficiency Water Heater: $125 - $300 (varies based on size)
Heat Pump Water Heater: $300
Solar Storage Water Heater w/ Electric Backup: $300
Flow Restrictors - Faucet: $1
Flow Restrictors - Shower: $5
HVAC
Heat Pump - Air Source & MiniSplit: $200/ton
Geothermal Heat Pump: $400/ton
New Furnace w/ Efficient ECM Blower Motor: $35/unit
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
Solar incentives mitigate the cost of installing a solar panel system on your home. This category of financial incentives is in place to encourage more homeowners to switch their home over to renewable energy. You might qualify for various types of incentives, including cash back, discounts or credit towards your monthly utility bill, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the Wisconsin government and others from the federal government. Types of solar incentives might include:
- Rebates: A solar rebate is a partial refund given after you've purchased your solar system. These could be offered by your local utility company, your state or your county. The rebates are usually applied before calculating tax credits.
- Tax Exemptions: Your solar panel system could qualify for exemptions on both sales and property tax. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions let you ignore the added value of the solar panels when you are calculating property taxes on your home.
- Net Metering: Don't forget to talk to your Onalaska utility company about signing a net metering contract. This allows you to receive credit towards your monthly utility bill for the value of excess energy generated by your solar panels. You may receive either a dollar-for-dollar credit or a percentage of the value.
- Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the federal government. (A tax credit is different from a tax deduction.)
Federal Solar Incentives
When someone says "solar incentives," you likely think of federal incentives first. The Federal Solar Investment Tax Credit, or ITC, is likely the most well-known federal solar incentive. The ITC provides you with a tax credit for a specific percentage of your solar system's cost.
The ITC can be applied to solar systems installed after January 1, 2006, on a primary or secondary residence that you own in the United States. The credit initially covered 30% of the total cost – for panels, labor, equipment and accessories – although it may range from 26-30%, depending on when your solar system was installed. There is no cap on the claim amount.
Talking to your local Onalaska solar panel installation expert is the best way to understand how the ITC may apply to your situation.
In August 2022, the Inflation Reduction Act expanded and extended the ITC, now titled the Clean Energy Credit. Now, solar installation projects that are completed between 2022 and 2032, can qualify for a 30% tax credit. This percentage will then decrease slightly each year until the end of the current Clean Energy Credit in 2035. Starting in 2023, it will also be easier to get credits for energy storage systems under this new program.
More information about the new Inflation Reduction Act can be found here. The best way to learn more about how the new Clean Energy Credit might apply to you is to reach out to your local Onalaska solar panel installation expert with your questions.
State & Local Solar Incentives
Some solar incentives are often also offered at the local or state level. As with federal incentives, these might include tax credits, rebates and more. These incentives might be handled by your county or municipality, or by the Wisconsin government. Some incentives may be ongoing, while others are available for a limited time.
Next Steps for Installing Solar in Onalaska
Nationwide solar energy use has significantly increased in the past 15 years, in part due to the proliferation of solar incentives. You can obtain these incentives from the federal government, the Wisconsin government or your local utility company. Your local Onalaska solar panel installer can give you more information about which incentives you should apply for, and get you feeling good about making the change to renewable energy today.
EcoWatch's Onalaska, WI Solar Incentives FAQs
How do I learn if I qualify for solar incentives?
Typically, solar incentives apply to:
- a new solar panel system
- installed on property you own
- within the U.S.
- within the date range specified by a particular incentive.
Specific incentives, including those run by the Wisconsin government or by your county/municipality, sometimes have additional qualifications. Talk to your local Onalaska solar installer to find out what incentives your project will qualify for.
I already have solar panels. Does my system qualify for any incentives?
An excellent idea would be to talk to someone from the company that installed your solar panels – or reach out to a local Onalaska solar installer — to better understand which incentives you might qualify for. If your solar panels were installed after January 1, 2022, you likely qualify for the recently increased 30% tax credit under the Inflation Reduction Act. Systems installed between 2006 and 2021 may qualify for a tax credit of 26-30%.
Can I receive incentives both towards the up-front cost of solar panels, and later as reimbursement?
The order in which incentives are applied may vary depending on which incentives you are claiming but typically yes, you can claim multiple types of incentives for your solar project. Speak to your solar installer or a local tax professional to confirm you are claiming all the incentives you qualify for and applying them in the correct order.
Can I use multiple types of renewable energy to power my home?
Yes, you can employ multiple types of renewable energy to power your home, such as a combination of solar and wind power. You can also combine renewable energy generation with a backup source of non-renewable energy. Be sure to discuss your proposed plan with your local Onalaska solar installation expert, to get an understanding of what will be needed and what kinds of incentives you might or might not qualify for.
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