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
18 solar companies in Iowa provide pricing on SolarReviews. Here are the best rated companies near you.
4.79 115 Reviews
Jeremy Zumbach, over 1 month
I cannot thank ECG Solar enough for everything they did for my family. I originally contracted with Moxie Solar to install my solar system. They went out of business and took my family's money with them. I called up the local news station and told them my story which was featured on I-9 investigates. ECG Solar saw the story, called me up, and offered to install a solar system on my home for free. I was taken aback as I have never experienced kindness, or compassion from a business in the past. Not only did they install everything free of charge they managed to get all of the equipment free of charge for my installation. The solar system has significantly reduced my electricity bill and is extremely reliable. The team is extremely professional. They show up when they say they are going to be there, clean up after themselves, and treat your property with respect. Deciding to make a financial investment this big is already a huge decision. Please take it from me and give ECG Solar a chance to win your business. You will receive a quality product from a quality team that stands behind their work. These two things are rare in this industry. Let them guide you through the process you will not regret your choice!
Read more
Average cost (5kW system)
$15,750 ($3.15 per watt)
Jeremy Zumbach, over 1 month
I cannot thank ECG Solar enough for everything they did for my family. I originally contracted with Moxie Solar to install my solar system. They went out of business and took my family's money with them. I called up the local news station and told them my story which was featured on I-9 investigates. ECG Solar saw the story, called me up, and offered to install a solar system on my home for free. I was taken aback as I have never experienced kindness, or compassion from a business in the past. Not only did they install everything free of charge they managed to get all of the equipment free of charge for my installation. The solar system has significantly reduced my electricity bill and is extremely reliable. The team is extremely professional. They show up when they say they are going to be there, clean up after themselves, and treat your property with respect. Deciding to make a financial investment this big is already a huge decision. Please take it from me and give ECG Solar a chance to win your business. You will receive a quality product from a quality team that stands behind their work. These two things are rare in this industry. Let them guide you through the process you will not regret your choice!
4.73 662 Reviews
Joshua Bentley, 4 weeks ago
They worked with me so professionally. The only slowdowns were on consumer end and they were so patient and polite. Tulsa shine solar office. Hmm. ;) Excellent work lads and lassies.
Read more
Joshua Bentley, 4 weeks ago
They worked with me so professionally. The only slowdowns were on consumer end and they were so patient and polite. Tulsa shine solar office. Hmm. ;) Excellent work lads and lassies.
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.
Read more
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.
4.47 13 Reviews
Ralph, 1 week ago
Communication good until payment made. Then communication stopped. We don’t know the status of the project and get no returns to our inquiries.
Read more
Ralph, 1 week ago
Communication good until payment made. Then communication stopped. We don’t know the status of the project and get no returns to our inquiries.
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.
Read more
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.
4.41 126 Reviews
Suzan C, 5 days ago
Charged me a cancellation fee because they did not understand that my house was being purchased on a real estate contract, even though they were told up front. High pressure sales tactics. I would not recommend.
Read more
Suzan C, 5 days ago
Charged me a cancellation fee because they did not understand that my house was being purchased on a real estate contract, even though they were told up front. High pressure sales tactics. I would not recommend.
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!
Read more
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!
4.32 6 Reviews
MediaDad, over 1 month
I had done much research and knew exactly what I wanted for my solar and battery system. The Solar Guys gave me a fair price without any pushy sales or pressure. They provided references, were recommended by my electrician, and were able to deliver the Enphase system I was looking for. The process was super simple, The Solar Guys handled all the detailed design, permitting and coordination with the city and power company. When the city required additional work, the Solar Guys took care of it and made sure their requirements were met. Their installation was neat and professional. They were easy to communicate with, answered questions knowledgeable, and helped me with some of my odd requests, getting me exactly what I had wanted. And after the sale service has been excellent. When I had a minor issue, they were quick to jump in, troubleshoot the problem and get it fixed.
Read more
MediaDad, over 1 month
I had done much research and knew exactly what I wanted for my solar and battery system. The Solar Guys gave me a fair price without any pushy sales or pressure. They provided references, were recommended by my electrician, and were able to deliver the Enphase system I was looking for. The process was super simple, The Solar Guys handled all the detailed design, permitting and coordination with the city and power company. When the city required additional work, the Solar Guys took care of it and made sure their requirements were met. Their installation was neat and professional. They were easy to communicate with, answered questions knowledgeable, and helped me with some of my odd requests, getting me exactly what I had wanted. And after the sale service has been excellent. When I had a minor issue, they were quick to jump in, troubleshoot the problem and get it fixed.
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.
Read more
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 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.
Read more
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.