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Wisconsin Legislature: SB559: Bill Text
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SB559: Bill Text
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2025 - 2026 LEGISLATURE
LRB-4730/1
KP&EVM:klm&cjs
2025 SENATE BILL 559
October 24, 2025 - Introduced by Senators
Testin
,
Quinn
and
Wimberger
, cosponsored by Representatives
Krug
,
Dittrich
,
Gundrum
,
Gustafson
,
Maxey
,
Melotik
,
Murphy
,
Mursau
,
Spiros
and
Tusler
. Referred to Committee on Transportation and Local Government.
SB559,1,4
1
An Act
to amend
66.0401 (1m) (intro.) and 76.28 (1) (e) (intro.);
to create
2
66.0401 (1e) (bd), 66.0401 (1e) (bm), 66.0401 (1s), 196.01 (5) (b) 9. and 196.376
3
of the statutes;
relating to:
authorizing community solar programs and
4
granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill authorizes the establishment of community solar programs through which retail electric customers of an investor-owned electric utility may subscribe to a community solar facility and receive credits to their electric bills for electricity produced by the facility. Under the bill, entities called subscriber organizations may own or operate community solar facilities, which use solar energy to produce electricity. Retail electric customers may enter into a contract (subscription) with a subscriber organization through which the customers receive credits towards their electric bill based on their subscriptions. A subscriber and the community solar facility to which the subscriber subscribes must be located within the service territory of the same investor-owned electric utility. In addition, a subscriber may not receive an annual value of bill credits that exceeds the subscriber’s average annual electric bill. Also, under the bill, subscribers may not receive any state subsidy for which generating electricity from a renewable energy resource is a criteria for eligibility nor may subscribers receive any payment or other benefit from a tax incremental district.
The bill requires an investor-owned electric utility whose service territory includes subscribers to a community solar facility to credit the electric bills of the subscribers based on their subscriptions. PSC must promulgate rules allowing for establishment of community solar facilities and for subscribers to receive electric bill credits for their subscriptions. Under the bill, PSC’s community solar program rules must also satisfy various other requirements, including that the rules must modify existing interconnection standards, fees, and processes to facilitate interconnection of community solar facilities with the electric distribution grid. The rules must also require subscriber organizations to maintain proof of financial responsibility ensuring the availability of funds for decommissioning community solar facilities. PSC’s rules must also provide that bill credits may not reduce a subscriber’s monthly electric bill, including fixed charges, below $20. Four years after the rules take effect, PSC must submit a report to the legislature evaluating the costs and benefits of community solar programs.
The bill limits the total nominal capacity of community solar facilities established in this state to 1,750 megawatts. PSC must apportion the total nominal capacity limit among the investor-owned electric utilities having a service territory within this state, and the apportionment must be based on each utility’s proportion of the total electric load served in this state. A community solar facility may not be established within the service territory of an investor-owned electric utility if the nominal capacity of the facility plus the total nominal capacity of the community solar facilities already established within the service territory of the utility exceeds the capacity limit apportioned to the utility by the PSC. The bill also provides that PSC must promulgate rules that prohibit community solar facilities placed in service after December 31, 2035, from entering the program.
The bill also specifies that community solar facilities are subject to the zoning ordinances applicable to the parcels on which they are located. Also under the bill, with some exceptions, no building permit for a structure that is part of a community solar facility may be issued unless the municipality with zoning authority over the parcels on which the community solar facility is to be located approves the use of those parcels for purposes of a community solar facility by a two-thirds vote of the governing body of the municipality. The bill also subjects the community solar facilities of subscriber organizations to property taxation. Generally under current law, a person engaged in generating electricity for others is exempt from property taxation but is instead subject to a tax based on gross revenues.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB559,1
1
Section
1
.
66.0401 (1e) (bd) of the statutes is created to read:
SB559,2,3
2
66.0401
(1e)
(bd) “Community solar facility” has the meaning given in s.
3
196.376 (1) (b).
SB559,2
4
Section
2
.
66.0401 (1e) (bm) of the statutes is created to read:
SB559,2,5
5
66.0401
(1e)
(bm) “Municipality” means a city, village, or town.
SB559,3
6
Section
3
.
66.0401 (1m) (intro.) of the statutes is amended to read:
SB559,2,13
7
66.0401
(1m)
Authority to restrict systems limited.
(intro.) No political
8
subdivision may place any restriction, either directly or in effect, on the installation
9
or use of a wind energy system that is more restrictive than the rules promulgated
10
by the commission under s. 196.378 (4g) (b).
No
Except as provided in sub. (1s), no
11
political subdivision may place any restriction, either directly or in effect, on the
12
installation or use of a solar energy system, as defined in s. 13.48 (2) (h) 1. g., or a
13
wind energy system, unless the restriction satisfies one of the following conditions:
SB559,4
14
Section
4
.
66.0401 (1s) of the statutes is created to read:
SB559,2,22
15
66.0401
(1s)
Regulation of community solar facilities.
(a)
16
Notwithstanding ss. 60.61, 60.62, 61.35, and 62.23 (7), no building permit for a
17
structure that is part of a community solar facility may be issued unless the
18
municipality with zoning authority over the parcels on which the community solar
19
facility is to be located approves the use of those parcels for purposes of a
20
community solar facility by a two-thirds vote of the governing body of the
21
municipality. This paragraph does not apply under any of the following
22
circumstances:
SB559,3,2
1
1. In a town that has not enacted a zoning ordinance under ss. 60.62 and
2
61.35.
SB559,3,5
3
2. If use as a community solar facility is a permitted use for which no
4
additional discretionary approval is required for all parcels in the municipality to
5
be used as part of the community solar facility.
SB559,3,7
6
(b) Community solar facilities are subject to any zoning ordinance applicable
7
to the parcel on which the community solar facility is located.
SB559,5
8
Section
5
.
76.28 (1) (e) (intro.) of the statutes is amended to read:
SB559,3,17
9
76.28
(1)
(e) (intro.) “Light, heat and power companies” means any person,
10
association, company or corporation, including corporations described in s. 66.0813,
11
qualified wholesale electric companies and transmission companies and except only
12
business enterprises carried on exclusively either for the private use of the person,
13
association, company or corporation engaged in them, or for the private use of a
14
person, association, company or corporation owning a majority of all outstanding
15
capital stock or who control the operation of business enterprises and except
16
electric cooperatives taxed under s. 76.48
and subscriber organizations, as defined
17
in s. 196.376 (1) (i),
that engage in any of the following businesses:
SB559,6
18
Section
6
.
196.01 (5) (b) 9. of the statutes is created to read:
SB559,3,21
19
196.01
(5)
(b) 9. A subscriber organization, as defined in s. 196.376 (1) (i), if,
20
besides owning or operating a community solar facility, the subscriber organization
21
does not otherwise directly or indirectly provide electricity to the public.
SB559,7
22
Section
7
.
196.376 of the statutes is created to read:
SB559,3,23
23
196.376
Community solar programs.
(1)
Definitions.
In this section:
SB559,4,3
1
(a) “Bill credit” means the kilowatt-hours generated by the community solar
2
facility allocated to a subscriber to offset the kilowatt-hour usage on the
3
subscriber’s electricity bill.
SB559,4,7
4
(b) “Community solar facility” means a facility that generates electricity by
5
means of a solar photovoltaic device and that produces for its subscribers a bill
6
credit for the electricity generated in proportion to the size of their subscription,
7
and to which all of the following apply:
SB559,4,10
8
1. The facility is located on one or more parcels of land and no other
9
community solar facility under the control of the same entity, an affiliated entity, or
10
an entity under common control is located on that land.
SB559,4,16
11
2. At the time the subscriber organization that owns or operates the facility
12
executes an interconnection agreement with the investor-owned electric utility
13
serving the territory where the facility is located, the facility is not located within
14
one mile, measured from the point of interconnection, of a solar facility under the
15
control of the same entity unless the other solar facility is located on a rooftop or
16
previously developed site.
SB559,4,17
17
3. The facility has at least 3 subscribers.
SB559,4,18
18
4. Either of the following applies:
SB559,4,20
19
a. The facility generates not more than 5 megawatts alternating current of
20
electricity.
SB559,4,22
21
b. If the facility is located on a rooftop or previously developed site, the facility
22
generates not more than 20 megawatts alternating current of electricity.
SB559,5,4
23
5. If the facility is located on a rooftop or previously developed site, the total
24
electricity generated by the facility and all other facilities located on a rooftop or
1
previously developed site that are located within one mile of the facility, measured
2
from the point of interconnection, and that are under the control of the same entity,
3
an affiliated entity, or an entity under common control does not exceed 20
4
megawatts alternating current of electricity.
SB559,5,6
5
6. No subscriber holds more than a 40 percent interest in the output of the
6
facility.
SB559,5,8
7
7. Not less than 60 percent of the capacity of the facility is subscribed to by
8
subscriptions of not more than 40 kilowatts.
SB559,5,10
9
(c) “Control” means the possession, direct or indirect, of the power to direct
10
the management and policies of an entity through any method.
SB559,5,13
11
(d) “Investor-owned electric utility” means a public utility that sells electricity
12
at retail but does not include a public utility owned and operated by city, village, or
13
town.
SB559,5,15
14
(e) “Non-ministerial permit” means a permit or approval necessary to
15
construct a community solar facility that is not granted based on discretion.
SB559,5,21
16
(f) “Previously developed site” means a property, including any related buffer
17
areas, that has been previously disturbed or developed for non-single-family
18
residential, nonagricultural, or nonsilvicultural use regardless of whether the
19
property is currently being used for any purpose. “Previously developed site”
20
includes brownfields and parcels that have been previously used for any of the
21
following:
SB559,5,22
22
1. A retail, commercial, or industrial purpose.
SB559,5,23
23
2. A parking lot.
SB559,5,24
24
3. A site of a parking lot canopy or structure.
SB559,6,1
1
4. Mining.
SB559,6,2
2
5. Quarrying.
SB559,6,3
3
6. A landfill.
SB559,6,5
4
(g) “Renewable energy credit” means a tradable credit that represents one
5
megawatt hour of electricity produced from a renewable resource.
SB559,6,7
6
(h) “Subscriber” means a retail electric customer of an investor-owned electric
7
utility who satisfies all of the following:
SB559,6,9
8
1. The subscriber owns one or more subscriptions to a community solar
9
facility interconnected with the investor-owned electric utility.
SB559,6,11
10
2. The subscriber is located within the service territory of the investor-owned
11
electric utility where the community solar facility is located.
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