Solar Opportunities - Iowa

Solar Offerings and Incentives

Iowa offers many incentives to households that go solar. Depending on where you live, you may be eligible to purchase solar power without actually installing the equipment on your property.  These community or shared solar opportunities are listed below.   If you  install solar on your home, be sure to investigate the many state tax incentives as well as the available state federal  tax incentives. 

State  Incentives

Property Tax Exemption for Renewable Energy Systems

In Iowa, the added value of a solar system is exempt from property taxes for 5 years.  Details on eligibility requirements and more information on how to claim the tax exemption can be found here.

Renewable Energy Production Tax Credit

This is a personal tax credit offered to those who own facilities that produce electricity from renewable energy sources including solar thermal electric and photovoltaic systems. The tax credit is$0.015 per kWh of electricity. Claiming this tax credit will prohibit you from claiming the solar energy tax credit below. More information can be found here.

Solar Energy Systems Tax Credit

This tax credit is worth 18% of the installed cost of the solar system. There is a residential solar maximum of $5,000 and credits can be carried over for up to 10 years. Systems that are included are: passive solar heat, solar water heat, solar thermal electric, solar thermal process heat, and photovoltaic systems. Claiming this tax credit will prohibit you from claiming the renewable energy production tax credit above. More information and eligibility requirements can be found here.

Renewable Energy Equipment Exemption

In Iowa,  solar equipment is  exempt from the state sales tax. More information on eligibility requirements and how to claim the tax exemption can be found here.

Alternate Energy Revolving Loan Program

This program provides loans to individuals who seek to build renewable energy systems on their properties. The low-interest loans can account for up to 50% of the financed cost of the system with a maximum loan term of 20 years. For more information and eligibility requirements can be found here.

Federal Residential Renewable Energy Tax Credit

A federal-level investment tax credit (ITC) is now available to consumers wanting to purchase small wind turbines, solar panels, or geothermal heat pumps.  The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from Oct. 3, 2008 through Dec. 31, 2016. The credit covers 30% of the equipment cost, though some technologies have a credit cap of $2000. More details and a complete list of eligible technologies can be found here.

Local projects

Farmer’s Electric Cooperative Solar

A solar farm in Kalona offers solar power to members of Farmer’s Electric Cooperative. Although sometimes oversubscribed, check with FEC if interested.

Eligibility: FEC member

More information can be found here.

Hawkeye Rural Electric Co-op

This community solar project offers parts of a solar energy array to co-op members. Participating members receive bill credits for the power provided by their shares.

Eligibility: Hawkeye REC member

More information can be found here.