Iowa is a great state for solar. Although you might question Iowa’s potential for solar energy production, you might be surprised to know that Iowa is pretty well suited for solar. On average, the state sees about 4.5 hours a day of “solar-friendly sunlight.”
Although Iowa receives less sunlight when compared to states in warmer climates such as Texas or Arizona which are known for their intense sunshine, the optimal operating temperature for a solar array is actually around 75 degrees Fahrenheit. This means that Iowa’s relatively sunny yet cooler climate can actually provide better conditions for solar energy production while seeing shorter periods of sunshine.
Federal tax credits
The Federal Investment Tax Credit (ITC) allows qualifying systems installed in Iowa in 2021 or 2022 (residential or commercial) to qualify for a 26 percent federal tax credit. The ITC drops to 22 percent in 2023 and will fall in 2024 to 10 percent for commercial projects while coming to an end for residential projects.
Renewable energy property tax exemption
Although solar PV systems will likely increase your home’s assessed value, all new solar PV systems installed in Iowa are exempt from your property tax for five years. This window of time can help you to either partially or entirely recoup the cost of your solar PV systems installation without it having any negative impact on your property’s assessed tax value.
Iowa sales tax exemption
In Iowa, like many other states, any purchased equipment that’s required for your solar energy system are exempt from sales taxes.
Net metering in 2021
Along with the federal tax incentives, Iowa also offers net metering, helping make solar an excellent option for property owners. Net metering allows residential and commercial customers who generate their electricity from solar power to sell the electricity they aren’t using back to the grid. As a result, Iowa solar system PV owners receive a credit on their energy bill to offset any grid-supplied energy they may need.
To learn more about going to readily available renewable solar energy in Iowa,
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