Utility Aid

Utility aid is a form of shared revenue that the State of Wisconsin provides to local governments that host large-scale renewable energy projects, such as solar facilities. Under Wisconsin law many utility-scale solar projects are exempt from paying property taxes, so local governments receive utility aid payments to offset the costs of hosting these facilities.  These payments come from the state’s general fund and are distributed annually to counties and municipalities that host solar or wind projects. The goal of utility aid is to help communities provide public services and invest in local needs while supporting clean energy development. 

For solar projects over 50 megawatts (MW), utility aid payments total $5,000 per MW per year, and this amount is divided between the county and the town, city, or village where the project is located. If a solar project spans multiple jurisdictions, payments are divided based on how much generating capacity is located in each area.  Payments are based on the nameplate capacity of the project, not on the amount of electricity generated or sold.  For more information see Local Property Tax Impacts of Large-Scale Wind and Solar Projects and Utility Aid Payments for Wind and Solar Frequently Asked Questions.  

Utility aid payments begin the year after a solar project becomes operational and continue for the entire life of the facility, which is often several decades. These funds are not restricted, meaning local leaders can use them however they see fit. Communities across Wisconsin have used utility aid to repair and widen roads, and strengthen fire and emergency services, and even reduce local taxes. In this way, utility aid helps ensure that communities hosting large solar projects receive long-term financial benefits while contributing to Wisconsin’s clean energy goals.