Solar power in Iowa
Iowa has some room for improvement when it comes to solar incentives. However, what The Hawkeye State lacks in incentives, makes up for in sunshine. The high solar irradiation means that a solar system here will produce more than what solar systems in other areas of the United States will.
Iowa homeowners can take advantage of the state-based tax credit and the federal tax credit. Combined, these incentives will cover over 40% of the costs of your system in the form of tax credits. With almost half of the system costs being covered, going solar in Iowa is a no-brainer!
Compare solar quotes from the top solar companies in Iowa
Iowa solar power facts
$2.62 watt
Average cost: 5kW solar power system
?5 Years 7 Months
Average payback time
$63,932
Average lifetime savings
?5¢ kWh
Levelized cost of solar energy
35¢ kWh
If you don't get solar
?9,230 kWh
Annual power production
Cash flow graph based on cash purchase of a 7.04kW system
This 7.04kW system would offset 100% of your energy usage if your typical monthly bill in Iowa is $150, however, your situation may vary so try our solar calculator to get a result tailored to you.
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Solar companies in Iowa that provide pricing through the SolarEstimate marketplace.
How much can solar panels save you in Iowa
Average total cost of solar panel installation in Iowa
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,016 | $6,497 |
| 4kw | $7,903 | $8,535 |
| 5kw | $9,694 | $10,470 |
| 6kw | $11,455 | $12,372 |
| 7kw | $13,105 | $14,154 |
| 8kw | $14,741 | $15,920 |
| 9kw | $16,250 | $17,550 |
| 10kw | $17,760 | $19,181 |
How much do solar panels cost in Iowa?
$2.62 per watt
Cash purchased solar system
Before 26% solar tax credit
$2.90 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Iowa?
The biggest advantage of installing solar panels in Iowa is the state-based tax credit. This tax credit can be used in conjunction with the federal tax credit, providing major savings on system costs. Iowa also receives a lot of sunshine, meaning a system here will produce more electricity than a system in other parts of the US.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
The disadvantage of installing solar panels for your home in Iowa is that aside from the state tax credit, there are almost no solar incentives or rebates available. Electricity prices in Iowa are low, so the payback time on a solar system here is longer than payback times in other states.
Enter your details to calculate the potential costs and savings you can expect to see when installing solar panels on your home.
Best solar companies in Iowa
Compare solar quotes from the top solar companies in Iowa
Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
How much electricity will solar panels produce in Iowa
Solar panels produce different amounts of energy in different locations.
Around the Des Moines area solar panels installed on a south-facing 27-degree pitch roof will typically produce:
1,310kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in Iowa?
Iowa State Solar Tax Credit
Iowans can claim a state tax credit that is equal to 50% of the amount of the federal tax credit a homeowner is eligible for, up to $5,000 each year. Any remaining credit can be carried over for up to 10 years.
For example, if you installed a $20,000 solar system in 2020, you would receive a federal tax credit of $5,200 ($20,000 * 26% = $5,200). In this case, your state tax credit would equal $2,600 ($5,200 * 50% = $2,600). That’s a total of $7,800 that you would save on your federal and state taxes!
Net metering in Iowa
Net metering policy in Iowa requires the state’s two investor-owned utilities, MidAmerican Energy and Interstate Power and Light, to provide their customers with net metering. If a solar system creates more energy than what the home uses, the excess energy is credited to the homeowner’s electric bill to offset future electric costs.
For example, if your solar system creates 30 kilowatt hours (kWh) of energy in one day and your home only uses 25 kWh in that same day, you will receive a credit for 5 kWh for the following day. Depending on your system’s production and the amount of energy you consume, you have the potential to eliminate your electric bill entirely.
Tax exemptions
Iowa offers two types of tax exemptions: a sales tax exemption and property tax exemption.
The solar energy sales tax exemption allows solar energy equipment to be fully exempt from the state’s sales tax.
The property tax exemption for renewable energy systems serves to exclude the market value added to your property by a solar system from state property taxes for 5 years.
Alternative energy revolving loan program
This program provides zero-interest loans for the development of alternate energy production projects.
The minimum loan amount is $25,000 and it can be used to cover up to 50% of eligible project costs. Eligible project costs must be a minimum of $50,000 to meet requirements. The maximum loan amount is $1 million.
For more information, please refer to the Alternative Energy Revolving Loan Program page.
Iowa Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Iowa, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Iowa using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Iowa
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Iowa or Des Moines ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Iowa solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Iowa
Check out all of the ways energy providers of Iowa can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Solar Energy Systems Tax Credit (Personal) | State | Personal Tax Credit |
| Property Tax Exemption for Renewable Energy Systems | State | Property Tax Incentive |
| Renewable Energy Equipment Exemption | State | Sales Tax Incentive |
| Net Metering | State | Net Metering |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
