Residential solar

Utility And Tax Incentives

The federal tax credit for solar that homeowners buy ended after 2025. State programs, utility rebates, bill credits and tax breaks still lower the cost of going solar, and the right setup depends on your state and utility.

White home with rooftop solar among fall trees, installed by Wolf River Electric
House with solar panels, installed by Wolf River Electric

What changed in 2026

The 30% federal Residential Clean Energy Credit ended for systems installed after December 31, 2025. If you buy your system, you can no longer claim that credit.

Systems owned by a third party, like our prepaid lease, follow business tax rules. That is how the Solar Price Reset offer can lower your price.

Utility bill credits, cash rebates and state tax breaks did not change with the federal credit, and they still make solar pay off for many homes.

Incentives change often. This page is general information, not tax advice. Talk with a tax professional about your situation.

By state

Incentives where you live

MinnesotaMost utilities credit extra solar power at or near the retail rate for systems under 40 kW. Xcel Energy customers can earn Solar*Rewards payments.Solar in Minnesota →WisconsinFocus on Energy pays a cash rebate for qualifying solar, and some utilities credit exports at the retail rate.Solar in Wisconsin →IowaAlliant Energy and MidAmerican Energy credit exports at the retail rate, locked for 20 years. No sales tax on solar and a 5-year property tax break.Solar in Iowa →IllinoisA one-time $300 per kW rebate from ComEd and Ameren Illinois, plus Illinois Shines payments for the energy credits your system makes.Solar in Illinois →North DakotaNet billing for systems up to 100 kW with the investor-owned utilities, and a 5-year property tax exemption.Solar in North Dakota →South DakotaThe first $50,000 or 70% of the value solar adds is exempt from property tax, whichever is more.Solar in South Dakota →

Compare every program

Battery and EV incentives

Some utilities pay you to enroll a home battery in a demand program, such as Alliant Energy's Smart Hours in Iowa and Wisconsin. See battery programs. For EV chargers, see EV incentives.

Incentive questions

Is the 30% federal solar tax credit still available?

Not for systems homeowners buy and install after 2025. Third-party-owned systems, such as a prepaid lease, and business projects follow different rules. Ask your tax advisor about your situation.

Can solar still pay off without the federal credit?

For many homes, yes. Utility bill credits, rebates and tax exemptions still apply, and a prepaid lease can lower the upfront price. We show you the numbers before you decide.

Do incentives change?

Yes. Utility programs can change rates, run out of funds or close. We check the current rules for your address when we prepare your quote.

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