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Wisconsin Can’t “Data-Center” Its Way Into Natural Gas Dependence

The on-site renewable mandate in AB 840 is a grid reliability trap.

Wisconsin is at the front edge of a new electricity boom. Data centers, especially those powering artificial intelligence, are arriving with power demands greater than those of many towns and cities. This can be an opportunity for economic growth and long-term energy strength. But only if we write the rules correctly.

That’s why one provision in Assembly Bill 840 (AB 840) should be rejected outright:

“Any renewable energy facility that primarily serves the load of a data center shall be located at the site of the data center.”

On the surface, it sounds reasonable. If a data center claims it will use renewable energy, then the renewable energy should be “right there,” on-site. Simple. But energy policy isn’t made in slogans. It’s made in engineering and economics. And this provision is not a renewable energy policy at all.

It’s a natural gas mandate in disguise. Wisconsin should demand clean power at scale,  not performative compliance. Large data centers can draw hundreds of megawatts around the clock. That kind of demand can’t realistically be met with on-site renewables alone. At least in most locations in Wisconsin. Wind and solar require significant acreage, and the best renewable resources aren’t always near data-center sites.

So what happens when lawmakers require renewables to be built in a confined or impractical space? Renewables can’t meet demand. And when renewables can’t be deployed effectively, the market defaults to the only thing left — fossil fuels.

That means AB 840’s on-site rule doesn’t “ensure renewables.” It blocks renewables and guarantees fossil fuel generation, exactly the opposite of what Wisconsin needs for long-term energy security and economic resilience.

Grid reliability comes from flexibility, not forced geography. Here’s the core problem: the electric grid is not designed around one-to-one power matching. Wisconsin’s power system works because it is a network. We build generation where it makes sense, where the renewable resource is strongest, where land is available, where interconnection is possible, and where transmission can support it. Then electricity flows across the system.

This is not a partisan argument. It’s how modern power systems are built. Requiring renewable energy facilities to be located only on-site at data centers ignores the basic physics of the grid and forces the wrong kind of infrastructure in the wrong place.

Even worse, it undermines reliability. Concentrating generation and load at the same node can create congestion and interconnection bottlenecks. Reliability improves when generation is diversified and distributed geographically, wind in one region, solar in another, storage where it helps most, and transmission planned intentionally.

AB 840’s location requirement is the opposite of that. It is central planning, not grid planning.

If Wisconsin wants ratepayer protection, fine, but we can’t sabotage the growth of clean energy. There’s a lot in AB 840 worth serious discussion. Wisconsin absolutely must prevent large private loads from shifting costs onto families, farmers, and small businesses. That’s non-negotiable.

But if lawmakers are serious about protecting Wisconsinites, they should also consider what happens when natural gas becomes the default fuel for powering the new economy. Gas plants lock in decades of fuel dependence. And fuel dependence means price volatility. Families don’t just pay for the plant — they pay for the fuel, forever. That’s not energy security, that’s vulnerability.

Wisconsin should not build its economic future on imported fuel with prices set by national and global markets. We should build it on resources we can produce right here: wind and solar, paired with storage, demand response, transmission planning, and other grid reliability tools.

There’s a better way, and it’s common sense.

If lawmakers want data centers to contribute to Wisconsin’s energy future, the bill should do three things:

  • Require meaningful renewable procurement at scale, not token projects
  • Allow off-site renewable development connected to the Wisconsin grid
  • Require data centers to pay for the upgrades they drive, generation, interconnection, transmission, and firming

That approach accomplishes everything policymakers say they want:

  • reliability
  • competitiveness
  • long-term price stability
  • grid modernization
  • and no cost shift to ratepayers

And it does it without forcing Wisconsin into a wave of fossil buildout. Wisconsin gets one shot at this data center expansion will reshape our grid for the next generation. The decisions we make now will determine whether Wisconsin becomes:

  • a national model for modern, resilient power growth, or
  • a cautionary tale of rushing headfirst into natural gas dependence

AB 840’s on-site renewable mandate is not a guardrail. It’s a trap. If we want energy security and grid reliability, renewable energy provisions must be strong—and they must be real. That means allowing off-site renewables and requiring data centers to add new clean power to the grid at scale.

Wisconsin can welcome economic growth. But we should not do it by writing fossil dependence into law.

The post Wisconsin Can’t “Data-Center” Its Way Into Natural Gas Dependence appeared first on RENEW Wisconsin.

The Urgency of Climate Change and Why Renewable Energy Is Wisconsin’s Path Forward

Climate change is no longer a distant warning — it is here and it is reshaping our landscapes, weather patterns, and communities. Wisconsin has already begun to feel the effects, through more frequent flooding along our rivers, dangerous heat waves that strain vulnerable populations, and shifting agricultural seasons that threaten one of our state’s proudest traditions – farming. Left unchecked, climate change will accelerate these threats, driving up costs for families and businesses while destabilizing the ecosystems that sustain us.

But there is a solution within reach, and Wisconsin has the opportunity to lead: a rapid transition to renewable energy. We have the tools, we just need to be bold enough to move forward.

The Dangers We Face

Scientists are clear that continued reliance on fossil fuels is driving higher global temperatures. For Wisconsin, that translates to:

  • More volatile weather: Intense storms that damage infrastructure, cause power outages, and threaten public safety.
  • Rising health risks: Air pollution worsens respiratory illnesses, while extreme heat threatens seniors, children, and outdoor workers.
  • Economic disruption: Crop losses from unpredictable seasons, higher insurance premiums due to extreme weather, and costly repairs to public infrastructure.

The longer we delay addressing these dangers, the more expensive and disruptive they become. Every year of inaction compounds the risks and the cost. The good news is that the solution is affordable, efficient, and reliable.

Renewable Energy Is the Key

Wisconsin already has the tools we need to chart a safer, stronger path forward. Wind, solar, bioenergy, geothermal, and hydropower are proven, affordable, and increasingly accessible. Transitioning to renewable energy addresses climate change head-on while delivering real, local benefits:

  • Cleaner air and healthier communities by reducing emissions from coal and gas.
  • Energy independence — when we produce energy in Wisconsin, it keeps our energy dollars here at home instead of sending them out of state for fossil fuels.
  • Strong local economies through job creation in construction, manufacturing, installation, and maintenance — industries that can’t be outsourced.
  • Stable energy costs because renewable resources, unlike fossil fuels, aren’t subject to global market swings.

Every new solar array on a school, every wind turbine in a farm field, and every biogas digester on a dairy farm reduces our reliance on polluting fuels while building a more resilient local economy.

Wisconsin’s Opportunity

Our state is uniquely positioned to lead. With strong agricultural roots, an innovative workforce, and communities that value stewardship, Wisconsin can demonstrate how clean energy strengthens both economy and environment. RENEW Wisconsin is working every day to expand renewable projects across the state — partnering with businesses, schools, tribes, farmers, and local governments to accelerate the transition.

But the pace matters. To safeguard our children’s future, we must move faster. This means modernizing policies, supporting community solar, expanding access to financing, and ensuring equity so that every family can share in the benefits of clean energy.

A Call to Action

Climate change is the defining challenge of our generation. But it is also the greatest opportunity to reimagine how Wisconsin powers itself — cleaner, stronger, and more resilient. By choosing renewable energy today, we protect our communities, create thousands of good-paying jobs, and preserve the natural heritage we hold dear.

The dangers of climate change are real, but the solution is in our hands. Join RENEW Wisconsin and help us win this fight. Together, we can build a safer and more prosperous Wisconsin powered by clean, renewable energy.

The post The Urgency of Climate Change and Why Renewable Energy Is Wisconsin’s Path Forward appeared first on RENEW Wisconsin.

The One Big Beautiful Bill: What It Means for Wisconsin’s Clean Energy Future

On July 4, President Trump signed the sprawling and controversial One Big Beautiful Bill (OBBB)—a massive budget reconciliation package with major implications for renewable energy development nationwide. While the bill is complex, its impacts on solar, storage, manufacturing, and project finance are substantial, and the timelines are tight.

Here’s what Wisconsin’s clean energy developers and businesses need to know, without the fluff.

Construction Start Dates: Get Moving Now

If you’re planning utility-scale solar, wind, or storage projects, start now. Waiting could cost you the federal tax credits that make these projects financially viable.

The bill incentivizes two waves of project starts:

– By December 31, 2025: To avoid the new restrictions on Chinese-made equipment and financing.
– Projects that begin construction by July 4, 2026, will be safe harbored under the old rules and have until the end of 2030 to be placed in service—effectively avoiding the stricter December 31, 2027 deadline.

The IRS has used a flexible standard since 2013 to define “construction start,” but that’s about to change. President Trump issued an executive order on July 7 directing Treasury to tighten the rules. Symbolic gestures like minimal site work or vague contracts likely won’t be enough anymore.

Technology-Neutral Tax Credits (Sections 45Y & 48E)

The OBBB confirms the transition to technology-neutral tax credits, which apply to:

– Zero or negative greenhouse gas emission power projects
– Energy storage (regardless of emissions)

Potential value: 30–70% of project cost, plus bonus credits for domestic content and energy communities.

Key deadline: Solar and wind projects must be in service by December 31, 2027 — unless construction begins before July 4, 2026.

Non-solar and non-wind projects (like geothermal, hydro, and biomass) have until the end of 2033 to start construction at the full credit rate, with step-downs in 2034 and 2035.

FEOC Rules: Chinese Equipment and Financing Under Fire

Beginning in 2026, projects using certain Chinese-made equipment or financing will be ineligible for major federal tax credits.

Exemption: Projects under construction by December 31, 2025.

Developers should begin sourcing alternatives now. Compliance with FEOC (Foreign Entity of Concern) rules is critical to preserving project economics.

End of the Road for the 25D Residential Clean Energy Credit

 Homeowners will no longer be eligible for the 30% Residential Clean Energy Credit (Section 25D) for systems placed in service after December 31, 2025. This applies to residential solar PV, battery storage, geothermal heat pumps, and other eligible technologies. Originally set to phase down gradually through 2034, the credit is now scheduled to end abruptly.

Unlike the commercial credit (48), Section 25D only applies to systems that are owned directly by the homeowner—not those installed under a lease or third-party power purchase agreement (PPA). This change hits especially hard in states like Wisconsin, where third-party financing remains legally ambiguous or restricted. Without the 25D credit or clear pathways for leasing, many homeowners could be effectively locked out of affordable clean energy options

What Does “Completed” Mean?

According to IRS and Treasury guidance, a system is only considered “placed in service” when it is fully installed, operational, and legally interconnected. Merely signing a contract, incurring preliminary expenses, pulling permits, or partially installing equipment does not qualify. The system must be fully functional and delivering energy to the grid by December 31, 2025.

While the IRS has historically applied a flexible standard for defining when “construction starts”—allowing for symbolic gestures like minor site work or vague contracts—that’s changing. A July 7 executive order from President Trump directs the Treasury to tighten the rules. Under the new law, substantial expenditure is now being used as the marker of project completion. This means only actual capital outlays toward completed, operational systems will count, raising the bar for what qualifies as “placed in service.”

Can Homeowners Still Use Carryover Credits?

Yes. If a homeowner’s 2025 tax credit exceeds their liability, they can carry over the unused amount into future years.

Example: A $30,000 solar system yields a $9,000 tax credit. If the homeowner’s 2025 tax liability is $6,000, the remaining $3,000 carries forward to 2026.

Action Steps for Installers
– Push to finalize and install projects well before year-end.
– Educate customers about the “placed in service” requirement.
– Help customers understand how carryover works for high-ticket systems.

Battery and Solar Manufacturing (Section 45X): Tightened and Trimmed

Manufacturing credits remain, but are more limited:

– Wind components lose eligibility after 2027.
– Stacking credits is restricted unless components are made domestically and in the same facility.

Eligibility has been expanded for battery modules with essential subcomponents, giving manufacturers more flexibility, provided they localize supply chains.

Legacy Credits: Still Alive, With Limits

Projects under construction before December 31, 2024, can still claim the older Section 45/48 credits. These projects avoid FEOC restrictions and retain favorable timelines for completion.

Note: The permanent 10% ITC under Section 48 has been eliminated.

Depreciation and Direct Pay: Shifting Gears

The Modified Accelerated Cost Recovery System (MACRS) is the primary tax depreciation system used in the U.S. It allows businesses to recover the cost of certain tangible property over a specified number of years through annual tax deductions.

MACRS Depreciation: Projects using tech-neutral credits still get 5-year depreciation. Geothermal projects using legacy credits do not.
– Bonus Depreciation: Restored at 100% for equipment acquired after January 19, 2025.
– Direct Pay: Remains for public entities and select private projects, including carbon capture, hydrogen, and clean tech manufacturing.

Clean Fuels and Carbon Capture

The OBBB makes targeted changes to clean fuel and carbon capture tax credits, tightening eligibility and reshaping project economics:

– Section 45Z: Clean fuel credits extended through 2029. Sustainable airline fuels credit drops to $1/gal in 2026. Feedstocks must be 100% from North America after 2025.
– Section 45Q: Carbon capture credits are now $85/ton for all qualifying uses, but only for new post-enactment projects.

Business Models Must Evolve

Installers, developers, and manufacturers must take decisive steps to adapt:
– Secure construction starts before deadlines.
– Rethink sourcing strategies in light of FEOC restrictions.
– Educate customers on the 25D deadline and maximize installations in 2025.
– Invest in domestic manufacturing and battery assembly capabilities.

Final Takeaway: The Clock Is Ticking

The OBBB is both a challenge and an opportunity. The incentives remain strong, but the rules are tighter, timelines are shorter, and the margin for error is shrinking.

Wisconsin’s clean energy sector must act with urgency, clarity, and discipline. Success in this new landscape will require speed and resilience—the kind built through strong partnerships, local supply chains, and long-term strategic planning.

RENEW Wisconsin can decode the bill’s nuances, support your project pipeline, and keep building momentum toward a resilient energy future.

Need help navigating the changes?

Let’s chart the path forward together—connect with our team to explore how these changes impact your projects and where RENEW Wisconsin can help.

The post The One Big Beautiful Bill: What It Means for Wisconsin’s Clean Energy Future appeared first on RENEW Wisconsin.

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