If you’re thinking about going solar, Iowa has several financial incentives for installing a solar photovoltaic system. From Cedar Rapids to Sioux City, going solar is a great option thanks to the state and federal incentives available.
Iowa laws help you go solar
Let’s take a look at the top laws in Iowa that will be beneficial to the prospective solar shopper:
Net metering in Iowa
Customers of MidAmerican Energy and Interstate Power and Light (IPL) are eligible to participate in net metering if their solar energy system is under 500 kilowatts (kW). (For comparison, most residential systems are under 15 kW.) Net metering allows you to send your extra electricity back into the grid and get credits on your electric bill. When your panels aren’t producing all the electricity you need, you can use your credits instead of having to pay for electricity from your utility.
Solar easement laws
Like many other states, Iowa has solar easement and rights laws that help you ensure your solar installation isn’t covered by shade. Additionally, some cities, towns and municipalities in Iowa have rules that prevent your HOA from blocking your home solar panel installation.
Iowa tax benefits for solar
Check out the most significant incentives that will sweeten the deal for solar in Iowa:
Iowa residential solar tax credit
When it comes to clear cut state solar incentives, it doesn’t get a lot simpler than the MA renewable income offer. Under this credit, when you install a solar panel system at your home, you get 15% of the system cost back on your Iowa state income tax, with a $5,000 maximum credit amount.
Renewable energy property tax exemption
For any new solar PV system installed in Iowa, the assessed value of the system is exempt from your property taxes for five years. That means that, even though your solar installation adds value to your property, the added value can’t be counted when property is being assessed for taxes in the first five years of installation.
Iowa sales tax exemption
When you purchase a solar energy system in Iowa, the equipment is exempt from sales tax under Iowa’s sales tax exemption for electrical generating equipment, saving you 6% on your purchase price.
Federal solar tax credit (ITC)
One of the best incentives available to solar shoppers in Iowa is the federal solar tax credit, also referred to as the Investment Tax Credit. The ITC deducts 30 percent of the cost of your solar energy system from your taxes, which means big savings for solar shoppers.