Summary of Iowa solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to Iowa homeowners
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See what Iowa solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Iowa solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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.
Net energy metering in Iowa
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 solar rebates
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 solar tax credit
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.
Tax exemptions
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!
Cost of solar panels in your part of Iowa after all applicable solar incentives
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Prices based on a 10.9kW system, after 26% federal tax credit
Solar prices near you
Payback period
9.5-11.6 years
Net profit (savings less system cost)
$30,941-$37,817
Average size system installed in IA in 2021
10.9kW
Solar panel cost calculator
Best 10 solar companies in Iowa
16 solar companies in Iowa provide pricing on SolarReviews. Here are the best rated companies near you.
4.73 92 Reviews
Latest review
SunMomma, over 1 month
I prefer to do things "in person". It gives me a sense of who I am doing business with. ECG was prompt and professional. Their products are superior, and they are quick to respond if you have a question or concern.
Read more
Average cost (5kW system)
$15,750 ($3.15 per watt)
Latest review
SunMomma, over 1 month
I prefer to do things "in person". It gives me a sense of who I am doing business with. ECG was prompt and professional. Their products are superior, and they are quick to respond if you have a question or concern.
4.66 35 Reviews
Latest review
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.
Read more
Latest review
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.
4.46 9 Reviews
Latest review
Ryan R, over 1 month
I had always found solar really interesting but didn't understand how to do it or the ROI. Olson Solar made it super easy and an extremely painless, fast process. If you're in WI, call these guys first. Reliable and efficient.
Read more
Latest review
Ryan R, over 1 month
I had always found solar really interesting but didn't understand how to do it or the ROI. Olson Solar made it super easy and an extremely painless, fast process. If you're in WI, call these guys first. Reliable and efficient.
4.42 8 Reviews
Latest review
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.
Read more
Latest review
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.
4.40 50 Reviews
Latest review
Highly Satisfied, over 1 month
All employees that we worked with from Moxie were very informative and willing to assist us in any way possible. Thanks for the great experience!
Read more
Latest review
Highly Satisfied, over 1 month
All employees that we worked with from Moxie were very informative and willing to assist us in any way possible. Thanks for the great experience!
4.38 7 Reviews
Latest review
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!
Read more
Latest review
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!
4.38 8 Reviews
Latest review
Greg, 1 week ago
i have recommended this system to many folks around my town. im happy with the production.
Read more
Latest review
Greg, 1 week ago
i have recommended this system to many folks around my town. im happy with the production.
4.17 4 Reviews
Latest review
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.
Read more
Latest review
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.
4.15 170 Reviews
Latest review
Keith M., 1 week ago
A large company that has a lot of experience and growing pains of fast expansion. The installers and electrician were excellent and performed a quality job. The communication from their office administration, schedulers and operations team was horrendous . Had to spend hours of my own time to contact the city inspectors and JEA (Utility company) to push project forward because quite simply Sun pro was not doing it. The value is just not there, realized too late. JEA sell rate of approximately .07 a KwH plus fees make it cost prohibitive for a solar system in North Florida. JEA only buys solar at .035 a KwH which means the system you will have to purchase will have to produce three times the power your house uses. When you you see the cost of that system you will come to the conclusion the value is not there.
Read more
Latest review
Keith M., 1 week ago
A large company that has a lot of experience and growing pains of fast expansion. The installers and electrician were excellent and performed a quality job. The communication from their office administration, schedulers and operations team was horrendous . Had to spend hours of my own time to contact the city inspectors and JEA (Utility company) to push project forward because quite simply Sun pro was not doing it. The value is just not there, realized too late. JEA sell rate of approximately .07 a KwH plus fees make it cost prohibitive for a solar system in North Florida. JEA only buys solar at .035 a KwH which means the system you will have to purchase will have to produce three times the power your house uses. When you you see the cost of that system you will come to the conclusion the value is not there.
4.09 33 Reviews
Latest review
Dennis G, 1 week ago
Research concluded Zenernet as a top rated and recommended. Technology matches up with most, if not all, companies. I appreciate their style of business; low key....not pushy (like most of their competition IS). I feel Zenernet offered the best bang for the buck and was able to meet my budget needs/desired financial plan.
Read more
Latest review
Dennis G, 1 week ago
Research concluded Zenernet as a top rated and recommended. Technology matches up with most, if not all, companies. I appreciate their style of business; low key....not pushy (like most of their competition IS). I feel Zenernet offered the best bang for the buck and was able to meet my budget needs/desired financial plan.
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