Going solar in Wisconsin

Wisconsin sales/use tax exemptions apply to biofuel for residential energy production. Qualifying purchases include some agricultural crops, landfill gas, pellets, and wood chips/pellets/sawdust. Components used to store biofuels are not eligible for the exemption. Interested customers should submit a completed form S-211 to their retailer, who will apply for the exemption and offer a discount. Additional information and the necessary paperwork are available from the state Department of Revenue.

In Wisconsin, all private and local public electrical utilities are required to offer net metering to their interconnected renewable customers up to a maximum quota. Cooperatives may participate in net metering, but they are not required to offer it. Any system up to 300 kW is eligible. Upon entering a net metering contract, the customer's utility will install a bidirectional meter to measure net excess generation (NEG) sent back to the grid. Customers will receive either monthly or annual bill credits for the NEG they export at a fixed, avoided-cost rate. Fees and capacity limits may apply. The Public Service Commission reserves the right to alter any net metering or energy tariff program.

Wisconsin first established a renewable portfolio standard in 1999. Initial goals required at least 10% of the state's retail electricity to be generated using renewable technology. New specific goals have never been implemented, but utilities are nonetheless obligated to increase their renewable energy activities at a rate of 6% per year. Carve-out provisions apply to keep most renewable investments within state lines. Compliance is measured using renewable energy credit (REC) and renewable resource credit (RRC) systems pegging one megawatt hour of electricity to a fluctuating dollar value. Utilities may generate credits through the use of their own renewable installations or purchase them through tariff arrangements and power purchase agreements. Each credit expires after four years of use.

Focus on Energy grant funding is available for Wisconsin businesses making new renewable energy investments or energy efficiency improvements. The maximum available grant is $10,000 to fund half of project costs. Eligible projects include new solar, wind, or biomass energy systems not involved in academic or corporate research and development. Grants may also support professional training and marketing initiatives. To apply, the business should be located in a participating utility's service area and submit a successful proposal. Additional information is available from the Focus on Energy website.

Wisconsin Energy Innovation grants are available to local governments, public schools, and manufacturing businesses making renewable energy investments or energy efficiency improvements. The Public Service Commission keeps an annual grant budget of roughly $5 million to award in proportion. Grants can fund new generation/energy storage equipment, sustainable transportation, and engineering reviews/project studies. Application periods, known as requests for proposals, are opened annually. Additional information is available on the Public Service Commission's website.

Distributed generation and grid interconnection practices have been standardized in Wisconsin since 2004. Each new solar, wind, or other renewable energy system is sorted into one of four regulatory "categories" based on capacity. Category 1 ends at 20 kW, Category 2 at 200 kW, and Category 3 at one megawatt. The category of a system will determine the UL/IEEE standards it must follow and the rigor of its permitting process, including application fees and review turnaround time. The state requires all system owners, even of Category 1 systems, to hold minimum liability insurance coverage of more than $300,000 per occurrence. Utilities may further require the installation of external disconnect switches, but may not charge additional fees or require additional regulatory reviews beyond what is necessary. Additional information is available from the Wisconsin Public Service Commission.

In 1999, the Wisconsin legislature first established a public benefits fund for renewable energy and energy efficiency among low-income residents. The fund's day-to-day business is managed by a public/private partnership between Focus on Energy and the Department of Administration. Current fund initiatives support incentives, loans, and grants to home and business owners. Funding is sourced through both consumer surcharges and mandatory utility "buy-ins." Additional information is available from the Focus on Energy website.

Public buildings in Wisconsin are subject to sustainability and green construction standards set by the state's Department of Administration. Standards apply to new and existing buildings. New buildings must demonstrate energy efficiency of at least 30% above the state's commercial building codes, themselves based on LEED standards. Remodeling projects in existing facilities should procure only those building materials and appliances which have earned ENERGY STAR certification or which meet EPA/ASHRAE standards. Additional information, including compliance reports, is available from the Department of Administration.

Wisconsin Focus on Energy (FoE) is a public benefits fund providing a central management infrastructure for energy efficiency and renewable energy incentive and financing programs. Utilities may tap from the fund to support loans, grants, rebates, and educational initiatives. Funding is supported through customer surcharges and mandatory utility "buy-ins." Additional information is available from the FoE website.

Madison offers streamlined permit processes and/or zoning provisions to accommodate new solar and wind energy systems. New streets in subdivisions are required to face as reasonably east-west as possible, with adjacent lots oriented in an ideal position for solar access. Zoning laws further establish setback requirements, height limits, and regulations on shading from trees or other vegetation. Additional information is available from the city website.

Solar contractors operating in Madison must adhere to local licensing standards and technical guidelines. Anybody involved in the installation, repair, or modification of a solar thermal device should obtain an A-4 license from the state board or a solar thermal certification from NABCEP. Homeowners installing a PV system themselves are not required to obtain a license. Technical guidelines the city has set include panel orientation, fluids, sensors, and surveillance. Guidelines may be updated from time to time to reflect current building codes. Additional information is available from the city website.