Iowa solar panels: The complete guide in 2026
Data updated Jan 23, 2026
Interested in going solar? You'll need to install a 11.79 kW solar panel system to cover the average electric bill in Iowa, which will cost you about $36,406.
Cost for an average system in Iowa
| Cash price | $36,406 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $21,498 | 16 Years | 95% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Iowa
While Caitlin Clark has stolen the spotlight with her dazzling basketball skills, Iowa still shines brightly as a prime candidate for solar panels. Iowans interested in going solar can benefit from the federal solar tax credit, tax exemptions, and solar buyback programs.
Here's what you need to know about installing solar panels in the Hawkeye State.
Cost
How much do solar panels cost in Iowa?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Iowa homeowner needs a 11.79 kW solar panel system to cover their electricity needs, which comes out to $36,406 before incentives. Prices range from $30,945 to $41,867, but Iowa also has some great local incentives.
While this may sound high, it will pay off in Iowa. That's why over 7,400 Iowa homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 16.31 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Iowa?
The federal solar tax credit reduces the cost of installing your solar energy system by 30%–and Iowa also offers sales and property tax exemptions for solar panel systems, which can help you save thousands.
| Incentive | Average savings in Iowa | Description |
|---|---|---|
Iowa solar sales tax exemption | 6% savings on the cost of equipment | You don't need to pay any sales tax on new solar panel systems in Iowa. |
Iowa solar property tax exemption | The average property tax in Iowa is 1.5% | You’re exempt from paying property taxes on the increased value of your home for 5 years. |
Is net metering available in Iowa?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Some of Iowa's utilities offer net metering, including Alliant Energy (aka Interstate Power and Light). MidAmerican Energy, however, calculates its buybacks differently. Instead of awarding energy credits for each kWh of excess solar, it offers dollar-based bill credits.
The rest of the state’s electric cooperatives and municipal utilities aren’t required to offer residents a net metering option, although many do.
Equipment
Equipment quality
The more efficient a solar panel is, the more power per square foot. As of 2025, the most popular solar panels have a rated output of 450 watts. To get the most out of your solar energy system, choose panels with at least that much power output.
Your solar inverter setup is also important consideration—make sure it suits your roof’s layout.
And if you’re interested in a solar battery, it’s best to choose one that integrates with that inverter.
The best equipment tends to be more expensive, but it will often save you more money in the end. Premium equipment often has the best warranty terms, guaranteeing 25-40 years of coverage for repairs, replacements, and the lowest degradation rates (meaning they’ll maintain more of their power output for longer).
Companies
Who are the best solar installers in Iowa?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Iowa:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Iowa
- Iowa Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Iowa Energy Office
Learn about IA clean energy programs from the state government.
- Iowa Utilities Board
Read more about how utility companies work in IA.
- Iowa Electricity Profile (EIA)
Learn about IA energy production and prices.
- IA State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in IA.
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