Solar power in Iowa

Solar energy is growing rapidly in Iowa, with more than $940 million invested in its solar industry. Iowa has more than 15,400 solar systems installed across the state and is home to 78 solar companies, according to the Solar Energy Industries Association (SEIA).

Solar power is a great option for Iowa homeowners wanting to cut down on monthly energy bills and utilize renewable energy. As solar energy continues to expand in popularity, Iowans can also expect lower installation costs. In fact, solar panel costs have dropped 54% in the last 10 years. Along with federal and state solar incentives that help offset some of the installation costs, home solar panels are becoming more affordable in Iowa.

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Iowa solar panel cost

The cost of solar panels is measured in dollars per watt. In Iowa, the average solar system costs $4.01 per watt, according to Find Energy. With the typical Iowa home requiring an 8-kilowatt (kW) system to meet its needs, the average solar panel system would be $32,080 before factoring in state or federal solar tax credits and rebates. Per the Lawrence Berkeley National Laboratory’s data, the average U.S. solar panel system is 8.6 kW and costs $31,558. The following table compares U.S. average costs and sizes with Iowa’s averages.

Several factors impact the cost of residential solar systems, including the panel type, system size, and your roof condition. Although some solar panel brands are more expensive than others, the panels themselves only account fora portion of the total cost. The remaining costs come from permitting, inspection, wiring, mounting, and labor.

How does Iowa solar save you money?

You can save money in the long term when you buy solar panels because they generate the energy your home needs, allowing you to save on electricity costs. The time it takes for your panels to pay for themselves through savings is referred to as the payback period. The average payback period in Iowa, based on the state’s average monthly utility bill of $129.15, is about 14 years. Your estimated payback period varies depending on your installation costs, energy consumption patterns, and system size. Enter your information in our solar estimator on this page to receive a free savings estimate.

The following table displays a range of system sizes, costs, and estimated panel count at the average price per watt of solar panels in Iowa.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Iowa solar panel incentives or rebates

Solar panels are a large investment, but federal, state, and local incentives make solar power more affordable and accessible. For example, there is a federal solar tax credit offering 30% of the total cost of a solar system back to the consumer. You are eligible for federal tax credit if you install a solar system on your primary or secondary residence between 2022 and 2032. The credit will drop to 26% in 2033 and 22% in 2034 and expire in 2035 unless Congress renews it.

There are also state and local solar incentives offered throughout Iowa. The following table highlights some of the Iowa solar incentives that you may qualify for. 

Why choose Iowa solar power right now?

There are several reasons why Iowa residents are turning to solar energy to power their homes. While traditional electricity rates have increased, solar technology has improved, and the cost of solar panels has declined. A major advantage of solar is the cost savings, but customers are also drawn towards energy independence and environmental benefits.

Lower energy costs

Although installing solar energy in Iowa requires an initial investment, it can lower energy costs over time. Your monthly energy bill may be cheaper, and in some states, such as Iowa, you can sell extra solar energy back to your utility company through net metering programs.Traditional electricity rates have increased in recent years, leading Iowa residents to look for alternative power sources. Iowa customers could save more on energy costs by powering their homes with solar energy instead of paying for electricity from the grid.

Increase energy independence

Homeowners can take a step towards energy independence by installing solar systems. Most solar panel owners choose to remain connected to the power grid to rely on when their solar system doesn’t generate as much power. However, many also choose to install a solar battery to store excess energy for use during outages or when the sun isn’t shining. It is legal to live off-grid in Iowa, so you could choose to disconnect from the power grid with an off-grid solar system if you want to establish complete energy independence.

Go green

Another benefit of switching to solar power in Iowa is that you get to increase your reliance on green energy. Solar energy is a renewable resource that helps reduce your household’s carbon footprint. On top of your personal clean energy changes, the use of solar energy has an overall positive impact on the planet. In fact, according to the U.S. Energy Information Administration, operational solar energy plants do not produce the air pollution or greenhouse gasses other energy sources do. By lowering pollution, solar energy can improve overall health and decrease unnecessary healthcare costs.

Should I buy or lease my solar panels?

You can choose to access solar energy by signing a solar lease or power purchase agreement (PPA), enrolling in a community solar program, or buying a system through a solar loan or cash purchase. Leasing may seem more affordable because of the lower upfront cost, but purchasing your solar panels outright will lead to the greatest savings in the long run. You cannot qualify for certain federal and state tax incentives if you don’t own your panels. 

However, leases, PPAs, and community solar expand the availability of solar power to families who cannot afford the upfront cost. The following table goes further in depth on the pros and cons of each option.

Iowa solar panel companies

Various solar companies in Iowa offer residential installation and other services. If you are considering installing a solar system in your home, SaveOnEnergy can help. We are an independent energy marketplace and partner with top solar companies offering customized solar options. If you are ready to connect with a solar installer in Iowa, fill outour solar estimator or call the number on your screen to speak with an energy expert.

Solar installer	Year founded	Financing options	Warranty terms
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

What to look for in a solar contractor

When searching for a solar company, you should consider several important factors to help you find the best option for your home. Top solar providers usually offer competitive manufacturer warranties for their products and use high quality materials. Look for a licensed installer with certifications from a reputable organization like the North American Board of Certified Energy Practitioners (NABCEP). You can explore customer reviews to get a sense of the company’s service quality. Some installers also offer attractive solar financing options to make your purchase more affordable.

Beware of free solar panels in Iowa scam

You won’t find such a thing as free solar panels in Iowa. Some companies use this misleading language to persuade you to sign up for a loan deal. Others may try to trick you into providing them with your personal information by promising free solar panels. The best way to avoid these scams is to inform yourself about the Iowa solar industry. Our free solar resources can help you learn about solar costs, the installation process, and more.

Important solar installation factors to consider

Residential solar energy works effectively when the solar system in your home can harness enough of the sun’s power to convert it into electricity. Although solar panels can work in almost any climate, not every home is well-suited for a solar array. Based on your location, you should research and consider the following to determine how effective solar panels would be on your home:

• Roof condition: Everything from the size, position, age, slope and shape of your roof can impact the effectiveness of solar panels. Solar systems will be most efficient on south-facing roofs with slopes between 15 and 40 degrees.
• Amount of sunlight:. While solar panels can still generate electricity in indirect sunlight, they will be most efficient when placed on roofs that receive a lot of direct sunlight. If your home is under complete shade, a solar system might not generate enough electricity to power your home. 
• Neighborhood restrictions and requirements: Even if you have the perfect roof for solar panels and know you get a good amount of sunlight, some HOAs or neighborhood regulations may restrict the installation of solar panels without approval. Be sure to consult your neighborhood’s requirements before installing a solar system.