Solar Panel Savings in Madison, WI

Calculate how much you can save with solar panels in Madison, Wisconsin. Based on 3.8 peak sun hours/day and 14.9¢/kWh average electricity rate.

3.8

Peak Sun Hours/Day

14.9¢

Avg Rate (¢/kWh)

11.6 yr

Payback Period

$13k

25-Year Savings

Madison Solar Overview

Population:269,840
Sunny Days/Year:174
Avg Temperature:57.4°F
Solar Penetration:0.7%
Utility Company:Madison Gas & Electric (MGE)
Net Metering:Available

Calculate Your Madison Solar Savings

3 kW15 kW

Madison average: $134/mo

South-facing roofs produce the most energy

Add $8,000-$12,000 for whole-home battery backup

Annual Production

6,658

kWh/year

Annual Savings

$993

per year

Net System Cost

$11,550

after 30% ITC

Payback Period

11.6 yr

break-even time

25-Year Total Savings

$33,919

Monthly Savings

$83

Federal Tax Credit

$4,950

Cumulative Savings vs System Cost

$0k$9k$18k$27k$36kYr 0Yr 5Yr 10Yr 15Yr 20Yr 25System CostBreak-even
Cumulative Savings System Cost

Cost Breakdown

ItemMadisonNational Avg
Gross System Cost (6kW)$16,500$17,100
Federal Tax Credit (30%)-$4,950-$5,130
Net System Cost$11,550$11,970
Cost Per Watt$2.75/W$2.85/W

Solar Potential in Madison

Sun Hours vs National Average

3.8 hrs
4.5 hrs

Madison gets 16% less sun than the national average, but high-efficiency panels compensate.

Climate Advantages

  • 174 sunny days per year
  • Average temperature: 57.4°F — cooler temps actually improve panel efficiency
  • Average roof size: 1,648 sq ft — enough for a 91-panel system

Madison Solar Incentives & Programs

Federal Investment Tax Credit (ITC)

30% of total system cost deducted from federal taxes. For a $16,500 system, that's a $4,950 credit. Valid through 2032.

Wisconsin State Incentives

Wisconsin Focus on Energy rebates; net metering at full retail.

Net Metering — Madison Gas & Electric (MGE)

Madison Gas & Electric (MGE) offers net metering in Madison. Earn credits for excess solar energy sent to the grid, reducing your electric bill further.

Environmental Impact in Madison

2.8

Tons CO2 Offset/Year

46

Equivalent Trees Planted

0.6

Homes Worth of Energy

Based on 6,658 kWh annual production with a 6kW system. EPA average: 0.417 metric tons CO2 per MWh, 10,632 kWh per US home.

Solar Energy in Madison, Wisconsin

Madison, Wisconsin receives an average of 3.8 peak sun hours per day, offering adequate solar resources for homeowners looking to reduce their electricity bills. With electricity rates averaging 14.9¢ per kWh from Madison Gas & Electric (MGE), near the national average, solar provides competitive returns on investment.

A typical 6kW solar system in Madison produces approximately 6,658 kWh per year, saving homeowners an estimated $993 annually. The system pays for itself in about 11.6 years, after which you enjoy essentially free electricity for the remaining 13+ years of the system's warranty life.

Madison has a solar penetration rate of 0.7% — indicating early-stage solar adoption with tremendous growth potential as prices continue to fall. The cost of living index of 92 (national average: 100) reflects a lower cost of living, keeping installation costs competitive.

Other Cities in Wisconsin

Frequently Asked Questions

How much do solar panels cost in Madison, WI?

The average cost of a 6kW solar panel system in Madison is approximately $16,500 before incentives ($2.75/watt). After the 30% federal Investment Tax Credit, the net cost is about $11,550. Wisconsin Focus on Energy rebates; net metering at full retail.

How many peak sun hours does Madison get?

Madison, WI receives an average of 3.8 peak sun hours per day and approximately 174 sunny days per year. While below the national average, solar panels can still provide significant savings due to advancing panel technology.

What is the solar payback period in Madison?

The average solar payback period in Madison is approximately 11.6 years. After payback, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty. Over 25 years, total savings can reach $13,275.

Does Madison have net metering?

Yes, Madison has access to net metering through Madison Gas & Electric (MGE). This allows you to earn credits for excess solar energy sent to the grid, significantly improving your solar investment returns.

Is solar worth it in Madison, WI?

Yes, solar is a solid investment in Madison. While the 11.6-year payback is moderate, you'll still save $13,275 over 25 years. The 30% federal tax credit and local incentives help make solar financially attractive.

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