Federal ITC 26% (tax credit)
State tax credit: Yes ($5,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
The Iowa solar tax credit helps you install solar on your home. It provides some cash back in the first year, making your payback time-frame and return on investment a better than the national average. Pair that with the 26% Federal tax credit, and you've got a compelling investment case for home solar. Read on to learn all you need to know about incentives, policy, and savings for home solar power in Iowa.
Learn what solar incentives are available to Iowa homeowners
See what Iowa solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Iowa solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Iowa
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Iowa was one of the first states in the country to get on board with net metering, passing its first standard way back in 1984. The state's current net metering policy is pretty strong, though municipal and cooperative electric utilities are not covered.
MAE and AEIPL carry your surplus electricity you send back to them forward toward future bills, rather than actually giving you cash back. Regardless, savings are savings, and Iowa’s strong net metering policy helps make going solar here more sensible.
Iowa doesn't have any statewide rebates, but if you’re lucky enough to be served power by the Ames Electric Department, you can qualify for a rebate of $300 per kilowatt (kW), up to a maximum of $5,000. For example, if you install a 6-kW solar energy system, you can claim $1,800. Explore more information about the Ames solar rebate program by visiting the city’s website.
Iowa offers a personal tax credit equal to 50% of the federal solar tax credit of 26%. So, for an average 6-kW solar energy system installed for $18,000, you are eligible for $4,680 from the Federal government (26% * $18,000), and an additional $2,340 (50% of the Federal credit).
Both amounts can be claimed on your yearly tax returns for after a solar installation was completed on your home. There’s a maximum credit of $5,000. Any excess credit (i.e., if your credit reduces your tax burden below $0) may be carried over for up to ten years, which is great news for Iowa homeowners interested in solar power.
New solar owners in Iowa must apply online by May 1st of the year after installation. Each year, the state has a $5 million cap for all tax credits, but timely applications will be put on a waiting list for the next year's limit. Once your application is approved, a tax credit certificate will be mailed to you. Read more about Iowa solar tax credits here, and apply here.
Your solar power system adds value to your home. A bunch of value – like, thousands, even tens of thousands of dollars of value. Normally all that added value comes with added taxes.
In Iowa, however, the increase in property value resulting from the installation of a solar power system is exempt from all associated property taxes for five full assessment years. That’s not the full (i.e. doesn't expire) exemption we’ve seen in a lot of other states, but it IS a nice chunk of change you won’t be responsible for paying.
Another chunk of change you won’t be responsible for paying is the 5-7 % sales tax (depending on where you live) attached to most other items. Yep, Iowa exempts your solar power system from this one too. Good show, Iowa!
Showing data for:
Prices based on a 10.9kW system, after 26% federal tax credit
17 solar companies in Iowa provide pricing on SolarReviews. Here are the best rated companies near you.
4.79 108 Reviews
Muthu, over 1 month
Very happy with their service and would highly recommend ECG
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Average cost (5kW system)
$15,750 ($3.15 per watt)
Muthu, over 1 month
Very happy with their service and would highly recommend ECG
4.74 238 Reviews
Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
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Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
4.66 35 Reviews
Eschbank Farms, over 1 month
We searched out many different companies before we made the decision to go with Atwood Electric, Inc. We made that decision based upon how straightforward and honest they were from the very beginning. We were always kept in the loop of what was going on. Once the project was complete they made sure that we were happy with it, and understood how it worked. When we had questions they were always more than happy to answer them throughout the whole process. They were very easy to work with.
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Eschbank Farms, over 1 month
We searched out many different companies before we made the decision to go with Atwood Electric, Inc. We made that decision based upon how straightforward and honest they were from the very beginning. We were always kept in the loop of what was going on. Once the project was complete they made sure that we were happy with it, and understood how it worked. When we had questions they were always more than happy to answer them throughout the whole process. They were very easy to work with.
4.42 8 Reviews
jdwidmer, over 1 month
GWA was very helpful in every step of the way in getting set up to install<br />my solar panels on my shed. They had me up and running in 3 days. Steve<br />keeps a very close eye on the system to make sure everything works<br />properly. SUPER job! I would highly recommend GWA international for your<br />solar needs.
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jdwidmer, over 1 month
GWA was very helpful in every step of the way in getting set up to install<br />my solar panels on my shed. They had me up and running in 3 days. Steve<br />keeps a very close eye on the system to make sure everything works<br />properly. SUPER job! I would highly recommend GWA international for your<br />solar needs.
4.42 11 Reviews
Pete M, over 1 month
The installers were quick and professional. Customer service is excellent. Any questions were answered and easy to understand.
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Pete M, over 1 month
The installers were quick and professional. Customer service is excellent. Any questions were answered and easy to understand.
4.42 13 Reviews
Jeffrey and Marla Barnes, over 1 month
We just recently went solar. The whole experience was fantastic. AJ was the best at sitting down with us and explaining how it all works in a way that was super understandable. He drew pictures of how it would all look like. Explained the financial side and the beneficial side of how solar panels would provide all the electricity needs we would have in the future. The whole installment went down with no problems. The whole team was very professional and friendly. We are excited to one day having no electricity bill. To finalize the project, Destiny came out and showed Jeff how to install app on his phone and how to monitor what we're producing every day and how much money we're saving. It's incredible. Even with the cloudy day we've had this week, the solar panels are producing. We highly recommend Purelight Power for all your solar needs.
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Jeffrey and Marla Barnes, over 1 month
We just recently went solar. The whole experience was fantastic. AJ was the best at sitting down with us and explaining how it all works in a way that was super understandable. He drew pictures of how it would all look like. Explained the financial side and the beneficial side of how solar panels would provide all the electricity needs we would have in the future. The whole installment went down with no problems. The whole team was very professional and friendly. We are excited to one day having no electricity bill. To finalize the project, Destiny came out and showed Jeff how to install app on his phone and how to monitor what we're producing every day and how much money we're saving. It's incredible. Even with the cloudy day we've had this week, the solar panels are producing. We highly recommend Purelight Power for all your solar needs.
4.38 7 Reviews
Anonymous, over 1 month
CB Solar looked at our location and assessed our electrical usage, then gave us information on what would work for our house. They did all the legwork necessary to comply with our local REC requirements. That gave us peace of mind to know it was all handled by their knowledgeable engineers. <br />Once they installed our solar panels, we had immediate results on our very next electric bill.<br />We are very happy with CB Solar's expertise and their continued interest to be sure our array is working for us.<br />And we are glad to be using a renewable energy source to help power our house.<br />Just wish we had a bigger roof so we could have had a few more panels!
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Anonymous, over 1 month
CB Solar looked at our location and assessed our electrical usage, then gave us information on what would work for our house. They did all the legwork necessary to comply with our local REC requirements. That gave us peace of mind to know it was all handled by their knowledgeable engineers. <br />Once they installed our solar panels, we had immediate results on our very next electric bill.<br />We are very happy with CB Solar's expertise and their continued interest to be sure our array is working for us.<br />And we are glad to be using a renewable energy source to help power our house.<br />Just wish we had a bigger roof so we could have had a few more panels!
4.17 4 Reviews
Anonymous, over 1 month
I contracted with RJ Construction to install solar array equipment. I was very satisfied with the quality of work as well as the innovative ideas RJ came up with.
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Anonymous, over 1 month
I contracted with RJ Construction to install solar array equipment. I was very satisfied with the quality of work as well as the innovative ideas RJ came up with.
4.06 5 Reviews
Sunshine, over 1 month
We've only just begun! Since speaking with a previous customer, we've gone from bid to fully functional in about a month. These folks even have an energy efficiency team to help us go the next step.
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Sunshine, over 1 month
We've only just begun! Since speaking with a previous customer, we've gone from bid to fully functional in about a month. These folks even have an energy efficiency team to help us go the next step.
4.06 8 Reviews
Don't Get Scamed By Simpleray, over 1 month
Simpleray said they could install solar panels to my 15,000 square foot building without any structural changes to my building. I gave them a large deposit. 3 to 4 months later they said I had to put tens of thousands of dollars into reinforcing my metal building before they could put the panels up. They gave me part of my deposit back after 8 months but refuse to give me the remaining $4000.00. Now I have to take legal action against them.
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Don't Get Scamed By Simpleray, over 1 month
Simpleray said they could install solar panels to my 15,000 square foot building without any structural changes to my building. I gave them a large deposit. 3 to 4 months later they said I had to put tens of thousands of dollars into reinforcing my metal building before they could put the panels up. They gave me part of my deposit back after 8 months but refuse to give me the remaining $4000.00. Now I have to take legal action against them.