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Almost three-fifths of Iowa’s net electricity generation in 2023 came from renewable resources, but very little of that was solar.
But that doesn’t mean the sun can’t power your own home. Solar panels can help homeowners find independence from rising electricity prices. If you get the right equipment, they can even keep your home appliances running through power outages.
Solar panels are expensive, costing $10,000 or more, but an expanded federal tax credit is making them more affordable. The Hawkeye State also has a net metering policy, allowing you to gain credits on your utility bill for sending excess energy to the grid, and sales and property tax exemptions for solar panels.
Here’s what to know before going solar in Iowa — starting with the best solar installation companies operating within the state.
Best national solar panel companies in Iowa
The Solar Energy Industries Association lists 82 solar companies in Iowa, including 41 installers. Here are some national installers in Iowa worth considering.
EnergyPal
Most flexible
EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
Local solar panel companies in Iowa
While there are some national players to choose from, you can also get your solar panels installed by a local company. Here are a few we identified.
Eagle Point Solar is a major solar installer in the Midwest. It provides full-service installation services in Iowa, Illinois and Wisconsin. You will get a five-year quality of work warranty and a 25-year product warranty. The company offers power purchase agreements and leasing options, but only for commercial customers.
Energy Consultants Group is a full-service solar company based in Anamosa, Iowa. It installs solar panels, batteries, EV chargers and generators. The company can also monitor your system 24/7 to ensure its performance. Energy Consultants Group offers a 10-year quality of work warranty and a 25-year product and performance warranty on parts and components of a solar system. While the company provides a solar financing option, it’s unclear if it offers solar leases and power purchase agreements.
How to determine which solar company in Iowa is best for you
You have a lot of choices when it comes to finding a solar installer. You’ll want to start by gathering a list of as many options as you can. Search online, talk to neighbors and peers, ask around.
Once you have a list, ask several companies for quotes. This is like any other major home improvement project, and you should consider it as a long-term investment. Get detailed quotes to compare, and make sure they’re looking at your home in detail and considering your needs. Then choose the company that best fits what you want and offers the best price, reputation and warranties.
Cost of solar panels in Iowa
Here’s a look at the average cash price for a typical solar panel system in Iowa before factoring in tax credits and incentives, according to data from FindEnergy.com. Your actual cost may be higher, especially if you get a solar battery.
Average cost of solar panels in Iowa
| Typical system size (kW) | Price per watt | Total installed cost | Cost after 30% federal tax credit | |
| Iowa | 5 | $3.88 | $19,400 | $13,580 |
| National average | 5 | $3.58 | $17,900 | $12,530 |
Below, you’ll find the total cash price, cost per watt and system size for the average solar panel system in your state, according to data from FindEnergy.com. Any prices you’ll see don’t represent potential fluctuations from tax credits or state incentives. Certain states don’t have any FindEnergy solar data and are grayed out on the map.
Iowa solar panel incentives or rebates
You have access to several solar incentives to help lower the cost of solar. The residential clean energy credit, a federal solar tax credit program formerly known as the investment tax credit, is one of the most generous solar benefits for US homeowners. With the clean energy credit, you can deduct 30% of the cost of a solar system from your federal income tax burden. This tax credit is available between 2022 and 2032. It decreases to 26% in 2033, 22% in 2034 and expires in 2035.
Iowa residents can apply for additional state and local incentives.
| Program | Description |
|---|---|
| Net metering | Net metering is the process by which you can sell surplus electricity produced by your solar panels back to the grid for credits on your bill. Iowa has a robust net metering policy but it doesn’t extend to municipal utilities and electric cooperatives. Two major investor-owned utilities — MidAmerican Energy and Interstate Power and Light — allow solar customers with a system less than 1 megawatt to participate in net metering. |
| Property tax exemption | The property tax exemption for renewable energy systems in Iowa exempts your new solar system from property taxes for five years. |
| Sales tax exemption | Under Iowa’s renewable energy equipment exemption, you don’t have to pay the 6% sales tax on your solar system and installation costs. |
| Solar easement and access laws | Iowa’s solar easement and access laws allow you to enter a voluntary easement agreement with your neighbors to ensure your panels get direct access to sunlight. Or you can request a solar access easement order from the solar access regulatory board. |
Read more: Want something smaller than a whole-home solar system? See our picks for the best portable solar panels and solar generators.
How solar-friendly is your state?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here’s how your state scored on CNET’s solar policy test.
Iowa
Grade: F
Incentives available:
- Utility-governed net billing — solar buyback at the wholesale rate
- Solar panel systems fully exempt from property taxes for five years
- Solar panel systems fully exempt from sales tax
Strongest scoring categories:
While Iowa has a full property tax exemption, it’s only for the first five years after you have your solar panel system installed. This will save you a chunk of change in the short term, but you’ll have to pay those property taxes after that five year period runs out.
Categories to improve:
A full property tax exemption with no time limit would be a decent improvement. State-governed retail rate net metering would accelerate solar payback periods across the state.
Solar financing options in Iowa
There is more than one way to pay for solar panels in Iowa. Let’s look at the benefits and drawbacks of each one.
Cash: A cash payment is the most direct way to pay for solar panels. Even though the upfront cost is high, you can take advantage of the federal residential clean energy credit and state incentives to decrease the cost. You also don’t have to worry about any interest or loan fees.
Solar loan: Once you pass a credit check, getting a solar loan is relatively easy. You don’t need to pay a hefty sum upfront when you take out the loan. However, interest and loan fees will apply and add to the total cost of solar, though the residential clean energy credit applies to loan purchases too.
Lease: With a solar lease, you enter a contract with a solar company that installs solar panels on your home. You pay a flat monthly price for the electricity produced by the panels. Since the solar company retains the ownership, it will claim all the tax credits, rebates and other incentives.
Power purchase agreement: Under a power purchase agreement, a solar company provides the solar system for you but owns, operates and maintains the solar panels. The company charges you a fixed amount per kilowatt-hour of electricity generated by solar panels. Like solar leasing, all incentives go to the solar company since it owns the panels.
Power purchase agreements and solar leases are viable options for those who can’t get a loan or have no upfront capital. Cash payment or a loan can provide a better monetary value over the long term because you will qualify for different incentive programs to lower the cost of solar. After that, you fully own the solar panels and continue to save on your electricity bill.
Installation factors to consider
Many factors can determine whether the benefits of going solar outweigh the costs. An experienced solar panel installer can help you figure this out.
Insurance: Many home insurance companies can cover solar panels in their policies. Ask your insurance company if your policy covers them.
Location: The amount of shading around your house impacts the generation from solar panels.
Rent or own: Installing solar panels is challenging for renters since they don’t own the property. Enrolling in a community solar program is one of the best ways for renters to get clean and renewable energy.
Roof: Most homeowners install solar panels on their rooftops. It’s essential to find out if your roof is in good shape before you get a solar system. Repairing or replacing your roof before installing solar panels saves you more money than dealing with it after installing them. Your installer should complete a roof inspection and communicate any necessary repairs before installation.
How we found the best solar companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
Iowa solar power FAQs
What are the benefits of solar power to the environment?
As a clean and renewable energy source, solar generation doesn’t emit harmful greenhouse gas emissions to the environment. Energy production from fossil fuels uses a lot of water and releases pollutants. The US Office of Energy Efficiency and Renewable Energy believes improved air quality from solar energy could prevent avoidable health care costs and save over 25,000 lives.
Do solar panels impact my home’s value?
Solar panels add value to your home. According to the Appraisal Journal, a home’s value can increase by $20 for every $1 decrease in yearly utility bills. Zillow found that sustainable homes, including those with solar panels and energy-efficient features, sold faster than others in 2022.
How long do solar panels last?
Solar panels are designed to last at least 30 years. It doesn’t mean that after 30 years they’ll stop working, but their output will decrease over time. Panels will continue to generate energy and reduce electricity bills even after 30 years. Upkeep of the panels and timely maintenance of any issues can slow down their degradation rate.
What kind of solar panels should I get?
You have a variety of choices, although most solar panels are similar. Some are more efficient than others. There are also solar shingles, which look more like a traditional rooftop.
