The Complete Guide to Iowa Solar Incentives
Updated October 4, 2024 | 10 min read

Looking for Iowa solar incentives? With more than 250+ sunny days per year and some of the top solar incentives in the US. Its no wonder why so many are switching to solar in The Hawkeye State!
In this article we'll explain the top solar incentives & local programs available to Iowa home & business owners.
Read on to learn more or enter your zip code below to see exactly which solar incentives & programs your home qualifies for!
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What Are Iowa Solar Incentives?
In Iowa, solar incentives are implemented through various financial programs and policies to promote the adoption of solar energy systems. These incentives are specifically designed to make solar installations more affordable and accessible for homeowners and businesses across the state.
By utilizing these incentives, residents and businesses can offset upfront costs, accelerate the return on investment, and enhance their energy independence. Some solar programs even offer opportunities for free solar panel installation in Iowa, increasing the affordability and accessibility of going solar.
These incentives not only contribute to a sustainable future but also provide significant financial advantages and potential savings on monthly electricity bills.
Also read: Are Solar Panels Worth It In Iowa?
Iowa State Solar Sales Tax
Iowa offers a solar tax credit that is equivalent to 50% of the federal solar tax credit, which is currently set at 30%. This means that for an average 6-kW solar energy system installed for $18,000, you can claim $5,400 from the federal government (30% * $18,000) and an additional $2,700 (50% of the federal credit) on your yearly tax returns.
The maximum credit available is $5,000, and any excess credit can be carried over for up to ten years. To take advantage of this tax credit, Iowa residents must submit an online application by May 1st of the year following the installation.
Federal Solar Investment Tax Credit (ITC)
Iowa residents also have access to beneficial solar incentives, such as the Federal Investment Tax Credit (ITC). The ITC, commonly known as the Green Energy Tax Credit, is a federal incentive available to homeowners and businesses nationwide, including Iowa. By utilizing the ITC, residents in Iowa can experience significant cost reductions in their solar energy system installations.
This incentive allows you to claim a tax credit of 30% of the total solar cost, providing substantial financial savings and making the switch to clean, renewable energy more accessible and affordable in Iowa.
Solar Net Energy Metering (NEM)
Solar net metering in Iowa enables solar energy system owners to receive credits for the surplus electricity they generate and contribute to the grid. When the solar panels produce more electricity than what is consumed on-site, the excess energy is sent back to the utility grid, and the owner receives credits for that amount.
These credits can then be utilized to offset future electricity bills during periods when the solar panels are not generating sufficient electricity, such as at night or on cloudy days.
Participating in net metering allows solar owners in Iowa to effectively lower their overall energy costs and potentially achieve net-zero electricity bills. Additionally, if the solar energy system consistently generates excess electricity, owners may have the opportunity to sell those credits back to the utility company, providing an additional source of income from their solar energy production.
Solar Property Tax Exemptions
Solar panels in Iowa are exempt from property taxes, meaning homeowners who install solar systems won't see an increase in their property tax assessment. Additionally, solar panels can increase the value of a home, allowing homeowners to benefit from the financial appreciation without paying additional taxes. This exemption incentivizes solar adoption, providing an attractive option for homeowners to go solar and enjoy the financial and environmental benefits.
Solar Sales Tax Exemption
Solar panels in Iowa are also exempt from sales taxes, providing a 6% automatic discount compared to neighboring states. This exemption reduces the upfront cost of solar installations, making them more affordable for homeowners and businesses. By eliminating sales taxes on solar panels, Iowa encourages the adoption of clean energy and supports the growth of the solar industry in the state.
Enter your zip code to see which Iowa Solar Incentives you qualify for!
Do I Qualify?
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How to Choose a Solar Installer in Iowa
Choosing the right solar installer is crucial to maximizing the benefits of your solar investment. Here's a checklist of key factors to consider when making your decision:
Experience and Expertise
- Local knowledge: Look for installers with proven experience in Iowa, as they'll understand local regulations, permitting processes, and the unique challenges of Iowa's climate.
- Certifications: Check for certifications from reputable organizations like the North American Board of Certified Energy Practitioners (NABCEP) which indicate a commitment to quality and industry standards.
- Positive reviews: Read online reviews and testimonials from previous customers to gauge their satisfaction with the installer's work.
Comprehensive Services
- System design: Ensure the installer offers customized system design to optimize your solar panel placement and energy production based on your home's specific needs.
- Installation quality: Inquire about the installer's installation practices and ensure they adhere to best practices for safety and performance.
- Maintenance and support: Ask about their post-installation services, including system monitoring, maintenance, and warranty support.
Transparent Pricing and Financing
- Detailed quotes: Obtain detailed quotes from multiple installers that clearly outline all costs involved, including equipment, labor, permits, and any additional fees.
- Financing options: Inquire about financing options they offer or can help you secure, such as loans, leases, or PPAs.
- No hidden costs: Be wary of installers with unusually low prices or who pressure you into signing a contract without full transparency.
Strong Customer Communication
- Responsiveness: Choose an installer who is responsive to your questions and concerns and keeps you informed throughout the entire process.
- Clear communication: Ensure they can explain technical details in a way you understand and are willing to address any questions you have.
- Positive reputation: Look for installers with a reputation for excellent customer service and a commitment to customer satisfaction.
Warranty and Guarantees
- Equipment warranty: Verify the installer offers strong warranties on the solar panels and other equipment, typically 25 years for panels and 10-12 years for inverters.
- Workmanship warranty: Ensure they provide a warranty on their installation workmanship, covering any defects or issues caused by their work.
- Performance guarantee: Some installers offer performance guarantees, ensuring your system produces a certain amount of energy over a specific period.
Ready to start your solar journey in Iowa? EcoGen America is Iowa's most trusted solar company, offering comprehensive solar solutions with a focus on customer satisfaction. Contact us today for a free consultation and learn how we can help you maximize your savings with Iowa solar incentives.
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Going Solar in Iowa
Iowa presents a promising opportunity for embracing solar energy, with its favorable conditions and abundant sunlight. By transitioning to solar power, residents and businesses in Iowa can greatly reduce their reliance on conventional energy sources, leading to significant savings on electricity bills and a positive impact on the environment.
With a range of solar incentives, programs, and financing options available, going solar in Iowa is both economically advantageous and environmentally conscious, paving the way for a brighter and greener future for the state.
Start the switch to solar today and explore all of your solar options with a Solar Savings Quote from EcoGen America, Iowa's most trusted solar company.
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Contact our team of local solar advisors and see how much you can save on your electricity bill.
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