Solar panels Iowa:

Prices, incentives and best companies 2024

Avg IA solar panel cost:

$10,637 - $13,001*

Avg 25 year savings:

$46,023 - $56,251

Avg payback period:

5.8 - 7.1 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.

Iowa solar panels guide 2024

Updated November 2, 2020

Installing residential solar panels is a great investment for Iowa homeowners. Residents of the Hawkeye State can cover around 40% of the total cost of a solar panel installation, thanks to the state and federal tax credit.

On this page:

Solar power prices, savings and payback in your part of Iowa

The average cost for an installed residential solar system in Iowa is currently $10,630 after claiming the 30% federal solar tax credit. This is $2.53 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Cost range of local prices


Net profit (savings less system cost)


Payback period

5.8-7.1 years

Recommended size for the selected utility bill


Solar panel cost calculator

Cash flow graph based on cash purchase of a 5.4kW system

Are solar panels worth it in Iowa

Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

5¢ /kWh

If you don't get solar

21¢ /kWh

(forecast avg Iowa electric rates over the next 25 years)

IA solar panel cost calculator

Best 10 solar installers in Iowa


Iowa solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses is the federal tax credit. Right now, the federal tax credit is equal to 26% of the total installed costs of installing a solar system. At the end of 2020, the amount of the credit will fall to 22%. This means that in order to maximize your savings potential, the best time to go solar in Iowa is now.

Iowa state tax credit

Iowa has a state solar tax credit equal to 50% of the amount of the federal tax credit a homeowner is eligible for up to $5,000. So, if your federal tax credit incentive was $5,000, your Iowa tax credit would be equal to $2,500.

Net metering

Iowa has a state-wide net metering policy, but it only applies to the state’s two investor owned utilities: MidAmerican and Alliant Interstate Power and Light. The investor owned utilities must credit their solar customers for the full retail value of electricity for any excess solar energy exported to the grid.

Property tax exemptions

Iowa has a property tax exemption for solar panel systems. Iowa law exempts 100% of the assessed solar system costs from being added to your property taxes for 5 years.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Net Metering

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Top models of solar panel installed in Iowa 2024

Average cost of solar panel installation in Iowa by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $11,060 $11,834
5kW $13,240 $14,167
6kW $15,186 $16,249
7kW $17,528 $18,755
8kW $20,240 $21,657
9kW $22,050 $23,594
10kW $24,230 $25,926

Best solar companies in the main cities of Iowa

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Iowa

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2024 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Off-grid solar system

Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Iowa in 2024?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Iowa will fall during 2024.

How much electricity do solar panel systems generate in Iowa?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 1310-degree pitch roof Iowa will generate 27kWh of peak DC (direct current) capacity per year per 1kW in Iowa.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in Iowa?

The biggest advantages in Iowa for installing solar panels is the state-based tax credit. This credit can be used in conjunction with the federal tax credit, providing major savings on system costs.

The disadvantage to installing solar panels in Iowa is that electricity prices in Iowa are low, so the payback time on the solar system will be longer here than payback periods for solar installed in other states. Also, aside from the state tax credit there is little in the way of other solar incentives or rebates available.

However, solar is still a great investment if you’re an Iowa homeowner. You’ll be kicking yourself that you didn’t get solar while the state and federal tax credits were around.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

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.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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