Iowa unfortunately no longer offers a state tax credit for solar panel installations on homes or businesses as of December 31, 2021. The program reached its maximum capacity and applications for new installations are no longer accepted.pen_spark
The Iowa solar tax credit was a state-level incentive that lowers the cost of installing a solar energy system by 30%. This credit is also worth 50% of the federal solar investment tax credit value, and it can be claimed on your yearly tax returns. The credit is a one-time rebate that reduces the amount of taxes you are obligated to pay, and it can be rolled over for up to five years. The credit also exempts your home from property taxes for five years, which adds up to significant savings over the life of your system.
Iowans who install solar panels could also take advantage of other local and federal incentives, including net metering, which allows homeowners to sell excess power back to their utilities. This can significantly lower your electricity bills and help you get to net-zero energy consumption.
Iowa Solar Tax Credit Update
However, the Iowa solar tax credit was not renewed in this past legislative session, which means that many of its benefits have expired. If you’re thinking of installing a solar panel system, be sure to act quickly so that you can qualify for the credits before they expire.
However, a number of other state and local incentives make the financial case for going solar even more compelling in Iowa. For example, the largest utility in the state, Alliant Energy (formerly Interstate Power and Light), offers a buyback program called net metering. The program works like a bank for your solar panels: if your panels produce more electricity than you need at any time, your utilities will give you energy credits that you can apply against your next bill.
Some local solar companies report an uptick in interest since the IRA was passed, although some potential customers may be put off by price increases that have resulted from a variety of factors, including inflation, higher materials costs and shipping rates. Still, local experts say that solar is a smart investment for Iowans, especially given the benefits they’ll enjoy in terms of reduced energy costs and lower carbon emissions.
The Alliant Energy Buyback Program
The Iowa solar tax credit provides a significant amount of up-front cash for your project. However, a number of other state and local incentives make the financial case for going solar even more compelling in Iowa. For example, the largest utility in the state, Alliant Energy (formerly Interstate Power and Light), offers a buyback program called net metering. The program works like a bank for your solar panels: if your panels produce more electricity than you need at any time, your utilities will give you energy credits that you can apply against your next bill.
Some local solar companies report an uptick in interest since the IRA was passed, although some potential customers may be put off by price increases that have resulted from a variety of factors, including inflation, higher materials costs and shipping rates. Still, local experts say that solar is a smart investment for Iowans, especially given the benefits they’ll enjoy in terms of reduced energy costs and lower carbon emissions.