Find out if solar panels are right for your home in Iowa.
Welcome to a comprehensive guide that aims to be your one-stop-shop for all things solar in Iowa!
With 349 MW of installed solar power as of March 2022, and the potential to build over 4,000 GW, Iowa is a sleeping giant in the solar energy landscape. From Cedar Falls to Ames, solar projects are popping up in both rural and urban settings. Wapello Solar at 128 MW, Strawberry Point producing 1 MW, and Arbor Hill Solar completed in 2022 at 31.8 MW all contribute to Iowa’s green landscape.
But there is a lot to consider to know whether solar is right for you. From costs and payback periods to net metering policies and even the direction your roof faces. This blog will break down every crucial factor you need to know to make an informed decision. So, let's harness the power of the sun and dive right in!
The average price for a home solar panel system in Iowa is $20,700 for a 6kW system or about $3.45 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Iowa | $20,520 | $34,200 | $10,260 | $3.42 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $17,100 | $8,785 |
| 6 kW | $20,520 | $10,542 |
| 7 kW | $23,940 | $12,299 |
| 8 kW | $27,360 | $14,056 |
| 10 kW | $34,200 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
What’s our take on solar in Iowa? Take advantage of ALL the incentives while you can.
The cost of solar in Iowa is high compared to a lot of other states. Because Iowa is not the sunniest state, solar demand and price reflect that. At the same time, solar is never a bad idea. There are only bad policies, contracts, agreements, and occasionally installers.
Opting for solar energy in Iowa offers a mix of advantages and drawbacks, but overall, the sunny side seems to win. One of the immediate perks is the slashing of your electric bills, even if you don’t have as many sunny days. You’re not just saving money; you're also cutting down on your carbon emissions and gaining a level of energy self-sufficiency. Iowa's tax breaks are the cherry on top, offering property tax exemptions for five years and a 6% sales tax kickback.
On the flip side, when taking into consideration the initial investment and your return. It all depends on your financial situation. While the average payback time in Iowa is a year longer than the national average (11 years), the long lifespan of solar panels—20 to 25 years—makes it less of a concern. However, it's worth noting that Iowa's renewable energy policies are more wind-centric, and the state's weather conditions could pose a risk to your solar panels. So, if you're considering going solar in Iowa, it's a generally good move, but make sure to consider all angles.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Iowa. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Beyond the 30% Federal Solar Tax Credit, you might qualify for additional incentives that can substantially cut down the cost of your solar panel setup. These perks can vary from state to state and even within local communities. Your local utility or city may offer incentives that can add up to significant savings.
The table below outlines the current incentives available in Iowa. However, this isn't an exhaustive list. Always consult your local utility provider for other potential savings opportunities.
| Name | State | Category | Type |
|---|---|---|---|
| Renewable Energy Equipment Exemption | IA | Financial Incentive | Sales Tax Incentive |
| Local Option - Special Assessment of Wind Energy Devices | IA | Financial Incentive | Property Tax Incentive |
| Property Tax Exemption for Renewable Energy Systems | IA | Financial Incentive | Property Tax Incentive |
| Methane Gas Conversion Property Tax Exemption | IA | Financial Incentive | Property Tax Incentive |
| Renewable Fuel Fund | IA | Financial Incentive | Loan Program |
| Alternate Energy Revolving Loan Program | IA | Financial Incentive | Loan Program |
| Mandatory Utility Green Power Option | IA | Regulatory Policy | Mandatory Utility Green Power Option |
| Iowa Energy Bank | IA | Financial Incentive | Loan Program |
| Iowa Energy Center - Grants for Energy Efficiency and Renewable Energy Research | IA | Financial Incentive | Grant Program |
| Alternative Energy Law (AEL) | IA | Regulatory Policy | Renewables Portfolio Standard |
There are hundreds of solar companies in Iowa. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Iowa state is embracing agrivoltaics, a unique venture that marries solar energy and agriculture.
A 10-acre plot at ISU will house the solar farm with a maximum energy output of 1.35 megawatts, sufficient to power approximately 200 homes. The land beneath the solar panels will soon flourish with a variety of crops and pollinator plants.
The Department of Energy (DOE) has granted ISU with a substantial $1.8 million grant. The largest allotment from the funding program. These types of agrivoltaic projects are popping up in other parts of the country but much research is still needed.
This financial backing will support extensive research to investigate whether agriculture and solar energy can harmoniously coexist. Researchers will delve into multiple facets, including crop yield, the microclimate under the panels, and energy efficiency.
They'll also be studying the social impact, exploring how such projects could build community and offer new opportunities in agriculture, especially for underrepresented groups.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Iowa decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Iowa can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Iowa is $20,700 for a 6kW system or about or about $3.45 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly. Besides operation, it is recommended they are cleaned off about once a year to be free from any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Most solar panels come with a 25 to 30-year performance warranty, which guarantees a certain level of electricity production. This is also their expected life span but can continue to generate power beyond 30 years. Make sure to read the fine print to understand what's covered and what's not. Some warranties might only cover specific parts of the solar system, like the inverter or the panels themselves.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Some homeowner's insurance policies will cover solar panels, but it's best to double-check. You may need to add a separate rider or even choose a different insurance provider to ensure your investment is protected.
For a system with no moving parts, it may seem like putting panels are your roof is a breeze. While DIY projects may be a frequent endeavor for the home handyman, DIY solar panel installation isn’t something we would recommend for most.
The biggest challenges at play are the intricate electrical work. Not only can mistakes damage the expensive system, there are also serious safety concerns for those who aren’t electricians.
We recommend at least getting a quote before you try taking on this project. You might be surprised to find that labor costs are a relatively small portion of the overall expense.
When it comes to solar panels, you'll mainly encounter two types: Monocrystalline and Polycrystalline. Both have their advantages and disadvantages, but either can meet your home's energy needs effectively. In general, Mono-panels are more expensive and more efficient. Poly-panels are slightly less efficient but more affordable. Due to the efficiency difference, you may need a few more poly-panels than mono-panels. There are a handful of other factors as well: roof weight capacity, roof area, roof angle and orientation, and of course your financial limitations.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
