Does solar still pay off in Wyoming in 2026?

Wyoming has STATUTORY 1:1 retail net metering for residential systems up to 25 kW under Wyo. Stat. §37-16-101..104 — but it's under active legislative threat for new 2026 buyers. CURRENT MECHANISM: monthly production offsets consumption at FULL RETAIL (~$0.115/kWh); any net excess generation (NEG) is credited as kWh and rolls forward month-to-month at retail value. At the START OF EACH CALENDAR YEAR, leftover NEG credits are cashed out at the utility's AVOIDED COST (Rocky Mountain Power Schedule 37, currently about $0.03/kWh). System cap 25 kW (statutory — covers any residential install; typical residential is 6-12 kW). Rocky Mountain Power (PacifiCorp — dominant IOU) modeled as the default; Montana-Dakota Utilities serves eastern WY with similar terms; rural co-ops vary (some use avoided cost for export — verify if not on RMP or MDU). Federal §25D = $0 for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing '30% through 2032' are using the dead pre-OBBBA schedule. NO Wyoming state solar income tax credit — Wyoming has NO state income tax at all, so there's nothing to credit against. MYTH: a widely repeated '40% / 20% deduction' for Wyoming residential solar does NOT exist. Property tax NOT EXEMPT — Wyo. Stat. §39-11-105 does NOT include a residential solar exemption. MYTH: a widely repeated 'statewide property tax exemption from 2022' is NOT in the Wyoming statute; treat as not exempt and verify with your county assessor. Sales tax EXEMPT for renewable-generation equipment up to 25 kW under Wyo. Stat. §39-15-105 / §39-16-105 — this is a REAL statutory exemption applying to panels, inverters, and equipment (state sales tax about 4%, so ~$800-1,200 saved on a typical $20,000 system). Tell your installer to apply it. NO SREC, no RPS. NO statewide battery rebate; no confirmed live state utility rebate (reject any '$3,000 / 50% state rebate' quote — not a live program). Install pricing about $2.50-3.50 per watt (modeled at $2.95 default). Typical solar-only payback 13-17 years with federal $0 and retail-offset net metering. Sources citing about 10-year payback assume the now-dead 30% federal credit — that does NOT apply to a 2026 cash buyer. Low Wyoming retail rates (~$0.115/kWh) limit savings per kWh; cheap install pricing and the sales tax exemption partly offset. MAIN RISK: SENATE FILE 111 (2025) directs the WY PSC to set new 'just and reasonable' compensation for systems installed behind the meter on or after January 1, 2026, with leftover credits sold at avoided cost. The 1:1 retail era is under DIRECT, NEAR-TERM legislative threat for NEW systems; PSC implementation is pending. Combined with Rocky Mountain Power rate-increase requests (about 30% in 2023, 15% in 2024), compensation structure for 2026 buyers is in flux. Monitor PSC dockets.

Published 2026-06-22VERIFIED 2026-06 · See inline citations

Wyoming's solar story in 2026 is two-sided and time-sensitive: a real, statutory 1:1 net metering law for systems up to 25 kW (Wyo. Stat. §37-16-101..104) — PLUS a real, statutory sales tax exemption on equipment under 25 kW (Wyo. Stat. §39-15-105 / §39-16-105). Both are valuable. But the 1:1 net metering is under active legislative threat under Senate File 111 (2025), which directs the WY PSC to set new compensation for systems installed behind the meter on or after January 1, 2026 — and PSC implementation is pending.

The headline:

Net metering for systems up to 25 kW (statutory cap; covers any residential). Monthly: production offsets consumption at FULL RETAIL (~$0.115/kWh). NEG (net excess generation) rolls forward month-to-month as kWh credits at retail value. At the START OF EACH CALENDAR YEAR, leftover NEG credits are CASHED OUT at AVOIDED COST (Rocky Mountain Power Schedule 37, currently about $0.03/kWh).
Rocky Mountain Power (PacifiCorp) is the dominant IOU and credits NEG at full retail. Montana-Dakota Utilities serves eastern WY with similar terms. Co-ops vary — some use avoided cost; verify your specific co-op if not on RMP or MDU.
Right-size to annual usage — annual surplus only earns avoided cost (~$0.03/kWh vs retail $0.115 = $0.085/kWh penalty on year-end surplus).
Federal §25D = $0 for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025).
NO state income tax credit. Wyoming has NO state income tax at all — there's nothing to credit against.
MYTH: a "40% / 20% deduction" for residential solar in WY does NOT exist.
Property tax NOT EXEMPT. Wyo. Stat. §39-11-105 does NOT include a residential solar exemption.
MYTH: a "2022 statewide property tax exemption" is NOT in the Wyoming statute. Verify with your county assessor; don't bake in.
Sales tax EXEMPT for renewable-generation equipment up to 25 kW (Wyo. Stat. §39-15-105 / §39-16-105) — real statutory exemption. State sales tax about 4%; about $800-1,200 saved on a typical $20,000 system. Tell your installer to apply it.
NO SREC, no RPS.
NO statewide battery rebate.
About $2.50-3.50 per watt install pricing (modeled at $2.95 default).
Typical solar-only payback 13-17 years with federal $0 and retail-offset net metering.

Sources citing about 10-year payback assume the now-dead 30% federal credit — that does NOT apply to a 2026 cash buyer. Wyoming's low retail rates (~$0.115/kWh) limit savings per kWh; cheap install pricing and the sales tax exemption partly offset.

The case for Wyoming solar in 2026: retail offset on monthly production + real sales-tax exemption under 25 kW + no state income tax to worry about + cheap install pricing. The drags: federal $0, no state income credit, property NOT exempt at state level, annual surplus only at avoided cost, no SREC, no battery rebate, and the very real risk that PSC implementation of SF 111 reduces export compensation for any 2026 install.

What changed federally — and what's still on Wyoming quotes that shouldn't be

The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Wyoming buyers, the federal credit on a purchased system is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems where construction begins before July 4, 2026 — and the lessor claims it, not you. Full federal context here.

The repeal came through the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025. Wyoming-focused solar sites are slow on this — any 2026 quote still showing "30% federal through 2032" is using the dead pre-OBBBA schedule. If a 2026 WY quote includes "30% federal solar tax credit" on a cash purchase, ask the contractor to redo the math with $0 federal and verify with IRS.

VERIFIED 2026-06 · IRS §25D repeal under OBBBA P.L. 119-21

The statutory 1:1 — what current law says, and what may change

Wyo. Stat. §37-16-101..104 establishes net metering for residential systems up to 25 kW at the state level. The mechanism:

Monthly: production offsets consumption at FULL RETAIL value (~$0.115/kWh on Rocky Mountain Power).
Net excess generation (NEG): credited as kWh and ROLLS FORWARD month-to-month at retail value. (Not dollar-banked — kWh-banked.)
Start of each calendar year: any leftover NEG credits are CASHED OUT at the utility's AVOIDED COST under Rocky Mountain Power Schedule 37, currently about $0.03/kWh.

This calculator models that mechanism at retail-match export ($0.115/kWh) because monthly NEG carries forward at retail and right-sized residential systems rarely accumulate large annual surplus. Annual surplus at avoided cost ($0.03/kWh) is disclosed but not separately modeled — it would only meaningfully reduce payback for oversized systems.

The 1:1 era is under direct legislative threat for NEW 2026 systems. See the Senate File 111 section below.

VERIFIED 2026-06 · Wyo. Stat. §37-16-101 / §39-15-105 / RMP Schedule 135

Senate File 111 (2025) — the live risk for 2026 buyers

Senate File 111 (2025) directs the Wyoming Public Service Commission to set new "just and reasonable" compensation rules for systems installed behind the meter on or after January 1, 2026, with leftover credits sold at avoided cost. PSC implementation is pending.

What this means in practical terms:

Existing systems (interconnected before Jan 1, 2026): likely keep current 1:1 retail terms (statutory grandfathering is the typical PSC pattern, though terms of implementation are pending — verify if you already have a system).
New 2026 systems: the export rate may be set materially below retail by the PSC. The statute's language ("just and reasonable" + leftover credits at avoided cost) signals the regulator may move toward a net-billing or avoided-cost export framework rather than 1:1 monthly retail offset.
Combined with Rocky Mountain Power rate-increase requests (about 30% in 2023, about 15% in 2024) — bill structure and underlying retail rates are in flux.

This is live, near-term regulatory risk. The calculator models the current 1:1 retail framework because that's the law on the books today, but a 2026 buyer should understand that the PSC's SF 111 implementation could change the export-side compensation between signing and interconnection. Ask your installer in writing what export terms they're modeling, and check the WY PSC's open dockets on SF 111 implementation before signing.

Utility coverage — Rocky Mountain Power, MDU, and the co-op caveat

The Wyo. Stat. §37-16-101..104 net metering framework applies to the investor-owned utilities:

Rocky Mountain Power (PacifiCorp) — dominant IOU, default modeled (Cheyenne, Casper, Cody, and most of the state). Credits NEG at full retail; Schedule 37 annual cash-out at avoided cost.
Montana-Dakota Utilities — eastern WY territory. Similar retail-offset framework.

Rural electric co-ops (Powder River Energy, High West Energy, others) vary — terms are NOT bound the same way as IOU tariffs. Some co-ops credit export at retail; some use avoided cost only. If you're not on Rocky Mountain Power or MDU, verify your specific co-op's net metering tariff in writing before signing.

State income tax credit — does NOT exist, and the "40% / 20% deduction" myth

Wyoming has NO state solar income tax credit. Wyoming has NO state income tax at all — there's nothing to credit against. Any source citing a "40% / 20% deduction" for Wyoming residential solar is wrong — that figure does not apply to residential rooftop solar. It is sometimes cited in older articles confusing federal commercial / industrial programs with state residential policy. Reject any 2026 quote citing a Wyoming state solar income credit.

The flip side of no state income tax is genuinely a feature for Wyoming residents — the state-level cost-of-ownership story is simpler because you don't have a state income tax bill to optimize against. But it also means no state credit lever to pull on solar.

Property tax — NOT exempt, and the "2022 exemption" myth

Wyoming does NOT exempt residential solar from property tax at the state level. Wyo. Stat. §39-11-105 (the property tax exemption statute) does NOT include a residential solar exemption.

MYTH ALERT: several sources repeat a claim of a "2022 statewide property tax exemption for solar in Wyoming" — this exemption is NOT in the statute. Conservative treatment: assume solar may raise assessed value. The dollar impact in Wyoming is modest because the residential property tax assessment rate is among the lowest in the country (9.5% of fair-market value), but it's not zero.

Verify with your county tax assessor before assuming any property tax benefit. If your specific county happens to have a local-option exemption that applies to residential rooftop, that's a bonus — don't bake it in upfront.

Sales tax — EXEMPT under 25 kW (a real statutory benefit)

Wyoming DOES exempt renewable-generation equipment up to 25 kW from state sales tax under Wyo. Stat. §39-15-105 / §39-16-105. This is a REAL, STATUTORY exemption — not a claim, not a myth.

Applies to: panels, inverters, and related equipment for the residential solar system (under 25 kW). State sales tax is about 4% (plus local rates, combined typically about 5-6% depending on jurisdiction). On a $20,000 system, that's about $800-1,200 in sales tax savings.

Make your installer apply it. Your quote should NOT include Wyoming state sales tax on solar equipment for a residential system under 25 kW. If it does, ask the installer to remove it and cite Wyo. Stat. §39-15-105. This is one of the few unambiguously positive line items on the Wyoming residential solar ledger in 2026 — don't leave it on the table.

SREC / RPS — does NOT exist

Wyoming has NO Renewable Portfolio Standard and NO SREC market for residential. There is no SREC revenue stream available to WY residential solar owners. Any quote citing "SREC revenue" is fictional.

Battery — no rebate, resilience case matters

No statewide battery rebate in Wyoming. Federal storage credit is $0 (§25D repealed for storage purchase). No confirmed live state utility rebate program — reject any quote citing a "$3,000 / 50% state battery rebate" (not a live program; likely stale information or confusion with a federal program).

Arbitrage gap is MODEST under WY's current net-metering framework because monthly NEG carries forward at FULL retail — day-to-day battery vs export arbitrage is near zero. The gap only appears on year-end annual surplus (retail $0.115 vs avoided cost $0.03 = gap $0.085/kWh on surplus only). For a right-sized residential system, that surplus is small.

Battery case in Wyoming is primarily RESILIENCE: severe weather, blizzards, high wind events, grid outages in remote areas (rural WY has long restoration times). Backup case is real; ROI case is weak under current 1:1 terms. Note: if PSC implementation of SF 111 sets a meaningfully lower export rate for 2026 systems, battery arbitrage will become more material — re-evaluate the battery decision once PSC implementation is final.

The honest payback — 13-17 years post-federal-repeal

At default install pricing of about $2.95/W (range $2.50-3.50), typical solar-only payback runs in the 13-17 year range with the federal credit at $0 and the current retail-offset net metering framework.

Sources citing about 10-year payback for Wyoming assume the now-dead 30% federal credit — that does NOT apply to a 2026 cash buyer. Don't use those figures.
Low retail rates (~$0.115/kWh) are the structural drag on Wyoming payback. The state has cheap power; each kWh of solar offset saves less than it would in a higher-rate state.
Cheap install pricing helps ($2.50-3.50 per watt is on the lower end of US install costs), as does the real sales tax exemption (~$800-1,200 on a typical system).
Right-size tightly to your annual usage. Don't oversize hoping to bank year-over-year — annual surplus only earns avoided cost ($0.03/kWh).
If SF 111 implementation reduces the export rate for 2026 systems, payback may extend further. Get current PSC docket status from your installer in writing.

Wyoming solar is respectable but not generous for 2026 buyers. The sales tax exemption is real; the 1:1 net metering is real (for now); the federal credit is dead; the property tax exemption is a myth; and SF 111 is a live forward risk on the compensation side.

VERIFIED 2026-06 · eia.gov; Wyoming PSC

How to read this — Wyoming's case for solar

WY solar in 2026 is value-driven by the sales tax exemption and the (current) statutory 1:1 net metering, with significant timing risk from SF 111.

Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
Reject any payback figure under about 12 years. Those numbers assume the dead 30% federal credit and don't reflect a 2026 cash buyer's reality.
Reject any quote citing a Wyoming state solar income tax credit. Doesn't exist — there's no state income tax to credit against. The "40% / 20% deduction" claim is a myth.
Reject any quote citing a Wyoming property tax exemption for residential solar. Not in statute. The "2022 statewide exemption" claim is a myth.
Insist the sales tax exemption is applied. Wyo. Stat. §39-15-105 exempts solar equipment up to 25 kW from state sales tax. Your installer should NOT include Wyoming state sales tax on equipment for a residential system under 25 kW. Worth ~$800-1,200 on a typical install — don't leave it on the table.
Right-size to your annual usage. Annual surplus only earns avoided cost (~$0.03/kWh vs retail $0.115 = $0.085/kWh penalty). Match production to consumption tightly; don't oversize hoping to bank year-over-year.
Verify your utility's tariff in writing, especially if you're on a rural co-op (Powder River Energy, High West Energy, others). Co-ops vary — some credit at retail, some at avoided cost.
Don't budget for SREC revenue. Wyoming has no RPS, no market.
Battery for resilience first, arbitrage second. Severe weather and remote-grid restoration times make backup a real case; the ROI math is weak under current 1:1 monthly NEG carry-forward.
Watch the WY PSC's SF 111 dockets. Senate File 111 (2025) directs the PSC to set new compensation for systems installed behind the meter on or after January 1, 2026 — the 1:1 retail era is under direct legislative threat. Existing systems likely grandfather; new interconnections may face reduced export rates. Get current docket status from your installer in writing before signing.
Account for Rocky Mountain Power rate-increase pressure (about 30% requested in 2023, about 15% in 2024) — your modeled retail rate may shift upward, which would shorten payback marginally on the consumption side but doesn't offset compensation cuts on the export side.

If you can right-size tightly to your annual usage, insist your installer applies the sales tax exemption, and you're comfortable with the SF 111 implementation risk between signing and interconnection, Wyoming solar is a respectable case for 2026 — just expect 13-17 year payback rather than the under-12 figures from the pre-federal-repeal era. If you were counting on a state income credit, a property tax exemption, or a $3,000 state battery rebate — none of those exist.

Run your real Wyoming payback →

The honest picture

Fact	Wyoming	Source
Mechanism	Statutory 1:1 retail NET METERING (systems up to 25 kW) — monthly retail offset + annual cash-out at avoided cost	Wyo. Stat. §37-16-101..104
Federal credit	$0 (cash purchase)	IRS — §25D repealed under OBBBA P.L. 119-21
State credit	NONE — Wyoming has NO state income tax at all (and the "40% / 20% deduction" claim is a MYTH for residential)	(no statute; no state income tax)
SREC	NONE — no RPS, no market	(no market)
Property tax	NOT EXEMPT — the "2022 statewide exemption" claim is a MYTH (not in statute); verify with county assessor	Wyo. Stat. §39-11-105
Sales tax	EXEMPT for renewable-generation equipment up to 25 kW — REAL statutory exemption; state sales tax about 4%, about $800-1,200 saved on typical residential system	Wyo. Stat. §39-15-105 / §39-16-105
Net metering / export	Monthly production offsets at FULL RETAIL; NEG rolls forward month-to-month as kWh credits at retail value	Wyo. Stat. §37-16-101..104; RMP Schedule 135
Excess credit rate	Annual leftover NEG cashed out at AVOIDED COST about $0.03/kWh at the START of each calendar year (Schedule 37)	RMP Schedule 37
Retail rate	About $0.115/kWh (low — among the cheaper US residential markets)	EIA; Rocky Mountain Power tariff
Install $/W	About $2.50-3.50 per watt before incentives (modeled $2.95 default)	NREL; EnergySage
System cap	25 kW statutory (covers any residential install — typical residential is 6-12 kW)	Wyo. Stat. §37-16-101..104
Battery treatment	No statewide rebate; federal storage $0; arbitrage gap modest under retail-offset NEG (only year-end surplus pays avoided cost); RESILIENCE case real (blizzards, wind, remote grid)	(no program); IRS
Payback range	About 13-17 years with federal $0 and retail-offset net metering (sources citing about 10 years assume the dead 30% federal credit — does NOT apply to a 2026 buyer)	this calculator
Main risk	Senate File 111 (2025) directs the WY PSC to set new "just and reasonable" compensation for systems installed behind the meter on or after January 1, 2026; combined with Rocky Mountain Power rate-increase requests (about 30% in 2023, about 15% in 2024) — the 1:1 retail era is under DIRECT NEAR-TERM threat for new systems	SF 111 (2025); WY PSC dockets
Utility coverage	Mandate applies to Rocky Mountain Power (PacifiCorp, dominant IOU, modeled default) + Montana-Dakota Utilities (eastern WY) — same framework; rural co-ops vary (verify your specific co-op tariff if not on RMP or MDU)	Wyo. Stat. §37-16-101..104; PSC
Right-sizing	Critical — annual surplus only earns avoided cost (~$0.03/kWh vs retail $0.115 = $0.085/kWh penalty on year-end surplus); match production tightly to annual consumption	Wyo. Stat. §37-16-101..104; RMP Schedule 37

Before you commit:

Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
Reject any payback figure under about 12 years. Those numbers assume the dead 30% federal credit. Wyoming's low retail rates (~$0.115/kWh) limit savings per kWh.
Reject any quote citing a Wyoming state solar income credit. Doesn't exist — there's no state income tax to credit against. The "40% / 20% deduction" claim is a myth.
Reject any quote citing a Wyoming property tax exemption. Wyo. Stat. §39-11-105 does NOT exempt residential solar; the "2022 statewide exemption" claim is a myth. Verify with your county assessor.
Insist the sales tax exemption under Wyo. Stat. §39-15-105 is applied to your panels, inverters, and equipment (system under 25 kW). State sales tax about 4%; about $800-1,200 saved on a typical $20,000 system. Don't leave it on the table.
Right-size to annual usage. Annual surplus only earns avoided cost (~$0.03/kWh). Don't oversize hoping to bank year-over-year.
Verify your utility's tariff in writing, especially if on a rural co-op (Powder River Energy, High West Energy, others). Co-ops vary — some credit at retail, some at avoided cost.
Watch the WY PSC's SF 111 dockets. Senate File 111 (2025) directs the PSC to set new compensation for systems installed behind the meter on or after January 1, 2026; PSC implementation is pending and may reduce export compensation for new systems. Get current docket status from your installer in writing before signing.
Account for Rocky Mountain Power rate-increase pressure (about 30% requested in 2023, about 15% in 2024) — bill structure is in flux on both sides.
Reject any "$3,000 / 50% state battery rebate" claim. Not a live Wyoming program. Federal storage credit $0.
Battery for resilience first. Severe weather, blizzards, and rural-grid restoration times make backup a real case; the ROI math is weak under current 1:1 monthly NEG carry-forward.

Run your real Wyoming payback →

Estimates only — Rocky Mountain Power Schedule 37 avoided-cost rate is updated periodically; Senate File 111 PSC implementation may change the export rate framework for systems installed on or after January 1, 2026; rural co-op net metering terms vary and are not bound by the IOU statutory framework. Verify with the Wyoming Public Service Commission, your specific utility (Rocky Mountain Power, Montana-Dakota Utilities, or your co-op), the Wyoming Department of Revenue for sales tax exemption application details, and your county tax assessor. This is not financial advice.