Federal ITC 30% (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
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
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 30% federal tax credit
17 solar companies in Iowa provide pricing on SolarReviews. Here are the best rated companies near you.
4.79 114 Reviews
Behrens, 3 weeks ago
I began to research solar energy about 5 years ago. I checked out solar brand panels and solar installation companies. As a result, ECG carried the brand of panels I hoped to have installed, and ECG had many excellent reviews, so we selected ECG. We have no regrets. First of all, there was no hard sell, but their approach was to provide us with information. From the beginning of the process to the end, communication was ongoing and excellent. The electricians did an excellent job and worked efficiently and tried to save us money in the process. Every step of the way went well and was well timed. Our solar array is producing electricity and we are totally pleased with the final result. We would recommend ECG highly and have let friend know about this ECG.
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Average cost (5kW system)
$15,750 ($3.15 per watt)
Behrens, 3 weeks ago
I began to research solar energy about 5 years ago. I checked out solar brand panels and solar installation companies. As a result, ECG carried the brand of panels I hoped to have installed, and ECG had many excellent reviews, so we selected ECG. We have no regrets. First of all, there was no hard sell, but their approach was to provide us with information. From the beginning of the process to the end, communication was ongoing and excellent. The electricians did an excellent job and worked efficiently and tried to save us money in the process. Every step of the way went well and was well timed. Our solar array is producing electricity and we are totally pleased with the final result. We would recommend ECG highly and have let friend know about this ECG.
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.
4.64 74 Reviews
Ryanne, 3 days ago
Out of the solar companies we talked to, this was the only one we felt we would have the best support through installation and beyond. For such a big decision/purchase, this is critical. The whole process was really easy and clear.
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Ryanne, 3 days ago
Out of the solar companies we talked to, this was the only one we felt we would have the best support through installation and beyond. For such a big decision/purchase, this is critical. The whole process was really easy and clear.
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.
4.38 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.
4.17 4 Reviews
Justin Mertes, over 1 month
For the last 18 months, we've been using solar thanks to The Solar Guys. Sara and I care a ton about the environment and stewardship, but at this stage of our life it was a financial decision. In order to pay less on our monthly bill and secure a fixed cost as cost of electricity continues to rise, we chose to take out a loan. Financial results after 18 months: We pay 6% less per month, even with increased usage, saving us hundreds of dollars. Environmental results after 18 months: we have reduced our CO2 output by 13 tons, which is the equivalent of planting 217 trees. Solar panels are a huge commitment, and I didn't want to take out a loan without thinking through everything. The Solar Guys were there for me every step of the way from helping me crunch numbers and projections in spreadsheets to providing plenty of references for me to talk to and taking phone calls from me time and time again. I trust The Solar Guys, and I'm glad did. If you're intrigued about going solar, I'd love to help you process, share my story and numbers, and connect you to The Solar Guys. Special shoutout to Jesse, Jereme, Eric, Brandi, and Melissa for their communication, support, timeliness, and amazing service!
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Justin Mertes, over 1 month
For the last 18 months, we've been using solar thanks to The Solar Guys. Sara and I care a ton about the environment and stewardship, but at this stage of our life it was a financial decision. In order to pay less on our monthly bill and secure a fixed cost as cost of electricity continues to rise, we chose to take out a loan. Financial results after 18 months: We pay 6% less per month, even with increased usage, saving us hundreds of dollars. Environmental results after 18 months: we have reduced our CO2 output by 13 tons, which is the equivalent of planting 217 trees. Solar panels are a huge commitment, and I didn't want to take out a loan without thinking through everything. The Solar Guys were there for me every step of the way from helping me crunch numbers and projections in spreadsheets to providing plenty of references for me to talk to and taking phone calls from me time and time again. I trust The Solar Guys, and I'm glad did. If you're intrigued about going solar, I'd love to help you process, share my story and numbers, and connect you to The Solar Guys. Special shoutout to Jesse, Jereme, Eric, Brandi, and Melissa for their communication, support, timeliness, and amazing service!
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.
3.97 13 Reviews
Tom Eeg, over 1 month
I have a new 16 panel ground mounted system and wish to thank Olson Solar Energy for the excellent job they did on my project. They worked with me on both the quantity of solar panels required as well as the variation between roof mount and ground mount systems. Being in a rural area, the ground mount was a better means to get a higher power output from the solar panels. The layout went very well with them and I will also like to commend the installation crew for making some minor adjustments to the grounds around my solar grid to allow for a better layout to provide the highest available light level around all the trees on my property. I am very satisfied with all the professional services Olson Solar Energy provided on this project as well as with the Adams-Columbia Electric Cooperative who got the system activated promptly after finally receiving the delayed site inspection approval by Adams County. I would highly recommend working with Olson Solar Energy on getting a solar panel system designed and installed on your property and feel free to contact me if you wish to view my site or if I can answer any questions on my system.
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Tom Eeg, over 1 month
I have a new 16 panel ground mounted system and wish to thank Olson Solar Energy for the excellent job they did on my project. They worked with me on both the quantity of solar panels required as well as the variation between roof mount and ground mount systems. Being in a rural area, the ground mount was a better means to get a higher power output from the solar panels. The layout went very well with them and I will also like to commend the installation crew for making some minor adjustments to the grounds around my solar grid to allow for a better layout to provide the highest available light level around all the trees on my property. I am very satisfied with all the professional services Olson Solar Energy provided on this project as well as with the Adams-Columbia Electric Cooperative who got the system activated promptly after finally receiving the delayed site inspection approval by Adams County. I would highly recommend working with Olson Solar Energy on getting a solar panel system designed and installed on your property and feel free to contact me if you wish to view my site or if I can answer any questions on my system.
3.93 2 Reviews
Anonymous, over 1 month
We started our solar project in March of this year, and realized that one of the first steps would be to convince our Home Owners Association (HOA) that solar was a good idea for our neighborhood. They did not have any policy in place, so we introduced them to the project, with Harvest Energy presenting at one of the board meetings. <br /><br />There was interest from the HOA board, but they needed a little more time and background information, and of course they needed to come up with some language to craft their policy. Working with John Blattner of Harvest Energy, I had decided to use SunPower panels, based on their efficiency and aesthetic appeal. We chose the Signature Black X21 350 W panels with anti-reflective glass.<br /><br />As we wound through the regulations and governmental permit requirements, Harvest Energy kept me updated on the process. By August we had received all the necessary permissions and permits, and the HOA had put together a simple, yet comprehensive policy. Once we got the official go ahead from our HOA, the panels were installed and after a couple weeks and the final inspection by our electricity supplier, DTE, the system was energized we started generating electricity on October 2. Once we had all the permits, the installation went quickly and smoothly, only taking about 3 days.<br /><br />The process was long, but this is what you can expect when you start from zero. Ours was the first house in our neighborhood to put in solar energy generation, so it had to follow the process. I appreciate the legwork done by John Blattner of Harvest Energy, but also the work done by our HOA to come up with a reasonable policy in a relatively short time. They are all volunteers, so they were doing their work in the evenings and weekends to come up with a policy. Special thanks to our Architecture Enforcement Committee chair for creating the language for the policy.<br /><br />Now that we are producing, I am really satisfied with the overall result. The panels look great and are generating enough electricity over the past week to offset over 80% of our electricity demand. We sourced the project with an expectation of meeting 62% of our needs. Of course, it will change as the amount of sunlight changes, but so far I am really happy with the production.
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Anonymous, over 1 month
We started our solar project in March of this year, and realized that one of the first steps would be to convince our Home Owners Association (HOA) that solar was a good idea for our neighborhood. They did not have any policy in place, so we introduced them to the project, with Harvest Energy presenting at one of the board meetings. <br /><br />There was interest from the HOA board, but they needed a little more time and background information, and of course they needed to come up with some language to craft their policy. Working with John Blattner of Harvest Energy, I had decided to use SunPower panels, based on their efficiency and aesthetic appeal. We chose the Signature Black X21 350 W panels with anti-reflective glass.<br /><br />As we wound through the regulations and governmental permit requirements, Harvest Energy kept me updated on the process. By August we had received all the necessary permissions and permits, and the HOA had put together a simple, yet comprehensive policy. Once we got the official go ahead from our HOA, the panels were installed and after a couple weeks and the final inspection by our electricity supplier, DTE, the system was energized we started generating electricity on October 2. Once we had all the permits, the installation went quickly and smoothly, only taking about 3 days.<br /><br />The process was long, but this is what you can expect when you start from zero. Ours was the first house in our neighborhood to put in solar energy generation, so it had to follow the process. I appreciate the legwork done by John Blattner of Harvest Energy, but also the work done by our HOA to come up with a reasonable policy in a relatively short time. They are all volunteers, so they were doing their work in the evenings and weekends to come up with a policy. Special thanks to our Architecture Enforcement Committee chair for creating the language for the policy.<br /><br />Now that we are producing, I am really satisfied with the overall result. The panels look great and are generating enough electricity over the past week to offset over 80% of our electricity demand. We sourced the project with an expectation of meeting 62% of our needs. Of course, it will change as the amount of sunlight changes, but so far I am really happy with the production.