Best Solar Companies in Iowa

How Do We Rate Solar Companies?

TL;DR: We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.

Check our detailed review process here.

Is It Worth Going Solar in Iowa?

Yes, it is worth going solar in Iowa. Here are some reasons why:

While the upfront cost of solar panels can be steep, you can expect to recoup your costs over time as your reliance on electricity wanes and you save money on utility bills.

Incentives and Tax Credits: There are several incentives and tax credits available in Iowa that can lower the initial costs of solar panels. These include:

Net Metering: This allows solar customers to trade off the extra electricity produced by their home installations in exchange for credits.

Property Tax Exemption: For the first five years of the installation, Iowa homeowners can have their system’s assessed value excluded from property tax assessments.

So, between the solar tax credit and the other incentives, Iowa homeowners have a lot going for them in the decision to switch to solar.

How much does solar save homeowners in Iowa?

Here’s a breakdown:

1. The average cost of a solar panel installation in Iowa ranges from $13,386 to $18,1101. After the federal tax credit, the average price drops by 30%1. If you pay for your system with cash, you’ll save about $19,441 over 20 years on electricity costs with a 5 kW system in Iowa.
2. Payback Period: The average solar payback period in Iowa is 15.34 years. This term tells us at what time you will recover your initial investment through electricity savings from your solar system.
3. Comparison with Traditional Electric Bills: On average, Iowa residents spend about $113,29 per month on electricity. That adds up to $1,824 per year. The average electric rates in Iowa is 14 ¢/kilowatt-hour (kWh), so that means that the average electricity customer in Iowa is using 1,086 kWh of electricity per month, and 13,032 kWh over the course of the year.
4. If you install a solar system, on average, you’ll break even on your solar investment in 15.34 years in Iowa, at which point you may not owe anything on your electric bills. Over the next 25 years, you should expect to pay $57,700 on electric bills in Iowa. You can reduce your electric bill by using less electricity or by reducing the cost of your electricity (like by installing a solar system).

*Please note that these are average values and the actual savings can vary depending on the specific circumstances of the homeowner, including the size of the solar system installed, the amount of sunlight the home receives, and the current cost of electricity from the grid. It’s always a good idea to get a personalized quote from a solar installer to understand the exact savings potential.

What is the average cost of going solar in Iowa?

The average cost of a solar panel installation in Iowa is approximately $15,748 for a 5-kilowatt system, before incentives. However, prices can range from $13,386 to $18,1101. After applying the federal investment tax credit (ITC), which lowers the price by 30% of all your solar equipment and installation costs, the average price drops.

Here’s a breakdown of the average solar cost by system size in Iowa:

• 3 kW system: $9,449 before ITC, $6,614 after ITC
• 4 kW system: $12,598 before ITC, $8,819 after ITC
• 5 kW system: $15,748 before ITC, $11,023 after ITC
• 6 kW system: $18,897 before ITC, $13,228 after ITC
• 7 kW system: $22,047 before ITC, $15,433 after ITC
• 8 kW system: $25,196 before ITC, $17,638 after ITC
• 9 kW system: $28,346 before ITC, $19,842 after ITC
• 10 kW system: $31,496 before ITC, $22,047 after ITC

*Please note that these are average values and the actual cost can vary depending on the specific circumstances of the homeowner, including the size of the solar system installed, the amount of sunlight the home receives, and the current cost of electricity from the grid. It’s always a good idea to get a personalized quote from a solar installer to understand the exact cost.

Iowa Solar Incentives

Federal Incentives:

• Investment Tax Credit (ITC): Also known as the Residential Clean Energy Credit, this federal incentive allows homeowners to reduce the cost of their PV solar energy system by 30% in the form of a tax credit.

State Incentives:

• Net Metering: 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). Net metering allows you to send your extra electricity back into the grid and get credits on your electric bill.
• Solar Easement Laws: Iowa has a 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.
• 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.
• 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.

Are There Any Community Solar Programs in Iowa?

Yes, there are community solar programs in Iowa. Here are a few examples:

1. Alliant Energy Community Solar: Alliant Energy has introduced a Community Solar program for its Iowa customers. This program allows customers to invest in a portion of the electricity the community solar arrays provide and receive ongoing monthly bill credits for the next 20 years1. Customers can purchase blocks of solar to cover up to 100% of their energy use.
2. Municipal Utilities and Rural Electric Cooperatives: Several municipal utilities (like Ames since 2020, and Cedar Falls in 2016) and rural electric cooperatives (like Farmers Electric Cooperative in 2011 and Heartland Power Cooperative since 2015) have already started community solar programs.
3. Cedar Rapids Project: Alliant Energy’s first community solar project in Iowa, located in Cedar Rapids, is fully subscribed. As solar blocks become available or as a new community solar facility is identified, Alliant Energy will contact those on the waitlist with an opportunity to enroll.

Community solar provides a way for individuals to directly support or invest in renewable energy. It’s a great option for those who live in apartments or in shaded areas, as they can directly support renewable energy without needing to install solar panels.