As electric costs continue to rise across Iowa, solar offers homeowners a way to lock in energy savings for the next 25–30 years. Rather than being at the mercy of utility rate hikes, solar energy allows you to take control of your long-term electricity costs.

Even without major federal and state incentives, many Iowa homeowners with good sun exposure and moderate to high electric bills find that solar pays for itself over time.

 

Iowa Solar Incentives: What’s Available?

While Iowa doesn’t offer many solar incentives, there are still a few incentives that can help lower the overall cost.

 

Sales Tax Exemption:

Iowa offers a 6% sales tax exemption on solar equipment, which lowers the upfront cost of your system.

• Applies to solar panels and related equipment
• Does not include labor or battery storage systems

Property Tax Exemption:

Installing solar increases your home’s value – but in Iowa, you won’t pay property tax on that added value for five years.

• This exemption helps protect your savings as your home value increases

Commercial Tax Credit:

Commercial solar projects may qualify for the 30% federal tax credit, provided construction begins by July 4, 2026, and is completed within four years, or, if started later, the system is fully installed by December 31, 2027.

 

Net Metering in Iowa

Many Iowa homeowners can also benefit from net metering, which is one of the most valuable solar advantages available.

What is Net Metering?

Net metering allows your electric utility to act like a “bank” for your solar energy. When your solar panels produce more electricity than your home needs, the extra power is sent to the grid.  In return, you receive energy credits.

When your system isn’t producing enough power – at night or on cloudy days – you use those credits to offset the electricity you pull from the grid.

Who Offers Net Metering?

• Major utilities like Alliant Energy and MidAmerican Energy offer net metering programs
• Some electric cooperatives and municipal utilities also offer net metering, though they’re not required to

Why Net Metering Matters

Depending on your utility, system size, and energy usage, net metering can significantly reduce – or even eliminate – your electric bill.

Some utilities offer annual net metering, where unused credits roll forward month to month and reset once per year.  Others use monthly net metering, where credits reset more frequently. Either option can greatly shorten your solar payback period.

 

Does Solar Make Sense for Your Home?

If you have:

• Good sun exposure

• Moderate to high electric bills

• Access to net metering

Solar may still be a strong long-term investment, even without major incentives. The biggest benefit isn’t rebates – it’s predictable, lower energy costs for decades to come.

 

Discover your home’s solar potential – schedule a free solar assessment today!