Wyoming Solar Overview
Wyoming is one of the least incentive-rich states for residential solar in the country. There is no state income tax, which means no income tax credit is possible, and the legislature has not enacted a property tax exemption or sales tax exemption for solar equipment. A renewable energy sales tax exemption existed until June 30, 2012, when it expired and was not renewed.
The one meaningful state-level benefit is mandated net metering under Wyo. Stat. § 37-16-101, which requires electric utilities, including Rocky Mountain Power, Black Hills Energy and rural electric cooperatives, to credit excess generation on a monthly basis. That retail credit is valuable, but it only applies within each month. Unused credits at year's end are purchased at the utility's avoided cost, which is substantially lower than retail.
With the federal residential ITC (Section 25D) having expired on December 31, 2025, Wyoming homeowners installing solar in 2026 are paying full equipment and installation costs without any credit offset, plus 4 to 6% Wyoming sales tax on the equipment.
Net Metering (Wyo. Stat. § 37-16-101)
Wyoming's net metering statute requires electric utilities, including electric cooperatives and irrigation districts, to offer net metering for systems up to 25 kilowatts using solar, wind, biomass, or hydropower. This covers virtually all residential solar installations. Rural electric cooperatives may have separate policies set at their own discretion.
| Feature | Wyoming NEM |
|---|---|
| System cap | 25 kW (Wyo. Stat. § 37-16-101) |
| Monthly excess credit | Full retail rate (kWh-for-kWh) |
| Monthly credit rollover | Yes, carries to next billing period |
| Year-end settlement | Sold at avoided cost (~2 to 4¢/kWh) |
| Cash payout option | No, no cash; sold at avoided cost |
| Co-op participation | Not required, varies by co-op |
| Rate class charges | No fee exceeding standard rate class minimum |
Every kWh of unused credit remaining on December 31 is converted to cash at Rocky Mountain Power's avoided cost, approximately 2 to 4¢/kWh, compared to the 14.36¢ retail rate you're offsetting during the year. That is roughly a 75 to 85% reduction in value for excess production. Experienced installers recommend sizing systems to produce roughly 90 to 95% of your annual usage to minimize year-end surplus exposure.
During the 2025 legislative session, the Wyoming Legislature rejected a bill that would have raised the net metering cap from 25 kW to 250 kW, which would have benefited agricultural and small business owners. The 25 kW residential cap remains in place.
State Tax Incentives
Wyoming has no state income tax. This is generally a positive for residents, but it means no state solar income tax credit is possible, there is no tax mechanism to credit against. Wyoming also has no alternative state credit structure for solar energy.
| Incentive | Status | Notes |
|---|---|---|
| State income tax credit | Not available | Wyoming has no state income tax |
| Property tax exemption | None | Solar may increase assessed value and property taxes |
| Sales tax exemption | Expired 2012 | Exemption expired June 30, 2012; not renewed |
| State solar rebate | None | No statewide residential rebate program |
| Net metering mandate | Active | Wyo. Stat. § 37-16-101, all electric utilities incl. co-ops, 25 kW cap |
Sales Tax on Solar Equipment
Wyoming levies a 4% state sales tax on all tangible personal property, including solar panels, inverters, racking, and batteries. Most Wyoming counties add an additional 1 to 2% in county sales taxes, bringing the total to 5 to 6% depending on location.
Wyoming's renewable energy sales tax exemption, which had covered solar equipment, expired June 30, 2012, and the legislature has not renewed it. The Wyoming Department of Revenue applies standard sales tax to all solar equipment purchases.
Unlike Montana (no sales tax at all), Idaho, and many other states, Wyoming offers no sales tax relief for solar. Budget an additional 5 to 6% on equipment costs when calculating your total installed cost. On a $20,000 system, that's $1,000 to $1,200 in sales tax alone.
Property Tax
Wyoming does not offer a property tax exemption for residential solar installations. When an appraiser assesses your property, a solar system may increase the assessed value, potentially raising annual property taxes. The increase depends on local assessor methodology and the appraised value added by the system.
Wyoming property is generally assessed at market value. If your solar system adds $15,000 to $20,000 to your home's appraised value, expect a modest increase in property taxes, typically $100 to $300 per year depending on your county's mill levy. Factor this into your long-term payback calculation.
Federal & Other Programs
The main federal residential solar incentive, the Section 25D Investment Tax Credit, expired December 31, 2025. As of 2026, no equivalent residential credit has been enacted. However, some other programs may apply:
| Program | Who Qualifies | Benefit |
|---|---|---|
| USDA REAP Grant | Rural businesses & ag producers | Up to 50% cost grant for renewable energy systems |
| USDA Rural Energy Loan | Rural small businesses | Low-interest loans for energy efficiency and renewables |
| Section 48E ITC (commercial) | Commercial & third-party-owned systems | 30% tax credit if construction began by July 4, 2026, or if placed in service by December 31, 2027 |
| Utility efficiency rebates | Rocky Mountain Power, Black Hills customers | Limited rebates for efficiency upgrades (not solar panels) |
Wyoming ranchers and agricultural operations may find USDA REAP the most valuable program available, providing direct grants that offset more than half the cost of larger solar installations. Residential homeowners have no equivalent federal grant or credit in 2026.
Wyoming Utility Landscape
The majority of Wyoming customers are served by Rocky Mountain Power (a PacifiCorp subsidiary), which operates under Wyoming Public Service Commission oversight and is required to offer net metering. Black Hills Energy serves the Cheyenne area and southeastern Wyoming. Numerous rural electric cooperatives serve agricultural areas; state law requires them to offer net metering too, though their rates and fees differ.
| Utility | Territory | NEM Available | Approx. Retail Rate |
|---|---|---|---|
| Rocky Mountain Power | Most of Wyoming | Yes (IOU, required) | ~13 to 15¢/kWh |
| Black Hills Energy | Cheyenne, SE Wyoming | Yes (IOU, required) | ~12 to 14¢/kWh |
| Rural co-ops | Agricultural & rural areas | Varies, check your co-op | ~10 to 14¢/kWh |
If your electricity comes from a rural electric cooperative, verify that co-op's specific solar and net metering policy before committing to installation. Wyoming law requires cooperatives to offer net metering, but co-op rates, fees and avoided-cost values differ from investor-owned utilities.
Payback Analysis (2026, No ITC)
With the federal ITC expired, Wyoming solar payback periods are longer than they were in prior years. The state receives moderate to good solar irradiance in most regions, comparable to the Mountain West, but the lack of any state incentives and the addition of sales tax extends the timeline.
Payback improves meaningfully if you right-size the system to minimize year-end avoided-cost settlements and if your county has strong sun hours. Some parts of Wyoming (eastern high plains, Casper area) can see payback closer to 13 to 14 years with good system design.