Wyoming Solar Incentives (Rebates, Tax Credits & More in 2024)

Here is a look at the currently available solar incentives in Wyoming.

What Do Wyomingites Need to Know About the Federal Solar Tax Credit?

The federal solar investment tax credit (ITC) is the most substantial financial incentive available for new photovoltaic (PV) solar energy systems in Wyoming. It’s offered by the federal government and is available to all Wyoming homeowners.

The program allows you to write off up to 30% of your entire system cost on your federal taxes. In Wyoming, where residents pay an average of $29,610 for a typical system, the credit amount could come out to around $8,883. 

Your net cost would be just $20,727 – a much more attractive number.

The federal solar credit amount gets applied to the income taxes you owe for the year your system is installed. If you can’t take the full credit that year, you can roll over any remaining credit for up to five years.

The federal credit was originally offered in 2005 according to the following rate schedule:

• 30% of the system value for systems installed between 2005 and 2021
• 26% of the system value for systems installed in 2022
• 22% of the system value for systems installed in 2023
• 0% of the system value for systems installed in 2024 and beyond

Thankfully, the credit was extended in 2022 with the passing of the Inflation Reduction Act, and was increased back up to 30%. It’s now available according to the following rate schedule:

• 30% of the system value for systems installed between 2022 and 2032
• 26% of the system value for systems installed in 2032
• 22% of the system value for systems installed in 2033
• 0% of the system value for systems installed in 2034 and beyond

How to Claim the Federal ITC in Wyoming

The federal tax credit provides a massive benefit for virtually all solar customers. Even better: Filing for the credit takes just a few minutes and minimal effort. You can follow the simple steps below to make sure you take advantage of this perk.

• Step 1: When it’s time to file your taxes for the year your system was installed, go to the IRS website and print out Form 5695.
• Step 2: Fill out the form. You’ll need the contact information for the Wyoming solar panel installation company you hired to install your panels, and you’ll also need some basic information about what equipment was installed on your home. You may need to reach out to your solar company for the system size and value.
• Step 3: File the IRS form when you file your taxes, or have your accountant file it for you.

If you use tax software like HR Block or TurboTax, the program should automatically prompt you for information about solar conversion. Just report that you did install solar, and the software will ask you for all of the pertinent information instead of having you go to the IRS’s website.

EcoWatch’s Opinion on the Federal ITC in Wyoming

The federal credit is the single most helpful incentive available in Wyoming, and it’s one we highly recommend you take advantage of. Doing so is especially important in a state like Wyoming, which offers little in the way of state-based incentives. 

The tax credit takes just a few minutes to file for, and it provides an average value of over $8,800. Just keep in mind that the federal credit is not a rebate, so you’re not guaranteed to get the entire amount back. Instead, the credit amount gets applied to any income tax that you owe. If you don’t owe money on your taxes, you won’t be able to take the credit.

But even if you owe only a small amount of federal taxes, your tax liability should drop to $0, and the remaining credit will roll over for up to five years. As such, you’ll only be able to take the full credit if you expect to owe at least $1,776 per year in income taxes.
Watch Below: Learn How You Can Profit Off Of the Extra Energy Your Solar Panels Produce

Rural Energy for America Program (REAP) in Wyoming

REAP is a program that issues loans and grants to farmers and rural small businesses to help them install clean energy systems. To be eligible for REAP, you must fall into one of two categories:

• Agricultural producers, with at least 50% of their gross income coming from agricultural operations 
• Small businesses in eligible rural areas.

The program offers loan guarantees on loans covering up to 80% of the cost of an eligible project. It also offers grants for up to 40% of eligible costs. Interest rates are negotiated between the lender and borrower, while grants are fixed. A solar power system can receive a minimum of $2,500 and a maximum of $1 million in grant funding.

How to Claim Rural Energy for America Program (REAP) in Wyoming

Applications for REAP are accepted year-round through local U.S. Department of Agriculture offices. Agricultural producers or eligible small businesses should visit the local office in Casper, Wyoming and apply in person.

EcoWatch’s Opinion on Rural Energy for America Program (REAP) in Wyoming 

REAP loans and grants can be a great way for farmers and small businesses in rural, often remote areas to install solar power. This can help them earn revenue from the panels and supply clean energy to their community.

The program is not available for individual homes, and is only meant for larger, commercial solar power systems. Nevertheless, it is a valuable program for rural communities who want to adopt solar power. 

The application process is simple, but may be time consuming.

Net Metering in Wyoming

Net metering — also called net energy metering or just NEM — is a policy that lets you earn credits when your solar panels generate more electricity than you need. You can send this excess power to your local grid, and then get credits you can use to offset your costs whenever you need to draw power back from the grid.

The Wyoming Public Services Commission (PSC) mandates net energy metering throughout the state, so all homeowners should have access to the program.

In Wyoming, you should see a line for Net Energy Generated (NEG) on your monthly power bill. These credits roll over on a monthly basis, and at the end of the year, utilities are required to purchase the credits at an “avoided-rate” to the utility. This allows utilities to decide the cost of such credits. While some utilities offer the full retail rate, some may offer a lower rate. 

Nevertheless, net metering is a solid program that makes using solar power easier, often saving on the cost of batteries. 

How to Enroll in Net Metering in Wyoming

Enrolling in net energy metering often requires no work on the homeowner’s end in Wyoming. Your solar installer will have to apply for interconnection with your local utility company and arrange an inspection. If you have a bi-directional meter installed already — which many utility providers are offering automatically — then NEM will then simply take effect if and when your panels send energy to the grid.

To double-check, though, you can always follow the steps below.

• Step 1: Contact your utility provider to ask if you have the proper meter to take advantage of net energy metering. If you don’t, your electric company should install one.
• Step 2: Proceed with installing and commissioning your solar panel system.
• Step 3: Although not necessary, it’s a good idea to monitor your electric bills for a few months after your system is installed to confirm that you’re getting credited for your solar production. If you’re not, you may need to call your installer to report the issue.

EcoWatch’s Opinion on Net Metering in Wyoming

The net metering program in Wyoming is excellent for solar customers, especially considering the lack of state-mandated solar incentives. 

Wyoming’s net metering policy is not ideal. Customers who have substantial leftover credits at the end of the year may not get paid well for them. However, it’s helpful that it is available statewide. .

Local Solar Incentives in Wyoming

The state of Wyoming doesn’t offer any incentives for solar power systems. Depending on your city or utility, you may be eligible for loans or rebates for energy-efficient home upgrades, which can be carried out by a solar installer. The following public utilities offer some type of residential efficiency program:

• Black Hills Energy
• Carbon Power & Light
• Rocky Mountain Power 
• Lower Valley Energy
• Questar Gas

Check with your utility company to see what incentives they may offer in your area.

Which Solar Incentives Are The Best In Wyoming?

Solar incentives can be a great way to drive down the cost of going solar, but they’re not all created equal. HEre are the two best programs you should be sure to consider.

Federal Tax Credit

If you only have time for one solar incentive, this is the one to choose. Applying for the federal solar investment tax credit takes minimal time and effort on your part – just one simple form that takes just a few minutes to fill out.

The federal credit provides the greatest potential savings on your PV system. In Wyoming, if you can take the full credit, you’ll effectively save over $8,800 on average. Just remember that this credit is not a rebate, and the full amount is only guaranteed if you’ll owe the credit total or more in income taxes over the next five years.

Wyoming Net Metering

Net energy metering is another outstanding perk in Wyoming. Not only does it take most residents no time or effort to take advantage of, but it can also help maximize your savings, shorten your panel payoff period and reduce your energy bills month after month.

What Wyomingites Need To Know About SRECs / TRECs

Solar Renewable Energy Certificates (SRECs) are credits that solar customers can sometimes earn for their solar production. In states with an active SREC market, customers usually earn one credit for every 1,000 kWh of production (1 megawatt-hour). Those credits can then be sold for a profit to help pay off your panels.

Unfortunately, Wyoming currently does not have an active SREC market, so these energy credits are not available in the area.

What’s The Near Term Outlook For More Incentives In Wyoming?

At this time, there are no initiatives to bring additional incentives to Wyoming. It is one of the few states that doesn’t have an RPS goal, which usually serves as an impetus for additional incentives. If Wyoming does implement an RPS goal in the future, the likelihood is that more incentives will follow. However, there is currently no plan to implement one.

The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.