Iowa - Energy tax credit, solar rebates and incentives

Iowa Renewable and Solar Energy Incentives

Production Tax Credit for Renewable Energies (Residential/Commercial)

Iowa offers two different production tax programs that are granted for purchasers of wind and other renewable energy systems.

Property Tax Exemption (Residential)

Equipment Exemption for Wind Power and Solar Panel Systems (Residential/Commercial)

Revolving Loan Program for Alternative Energies (Residential/Commercial)

Iowa state investor-owned utilities and the Iowa Energy Center fund and administer this loan program, which offers combined low-interest and zero-interest loans to people who wish to install a renewable energy system.

Farmer’s Electric Cooperative Renewable Energy Rebate – Kalona (Residential/Commercial)

Independence Light and Power Renewable Energy Rebate (Residential/Commercial)

Subscribers to Independence Light and Power who purchase and install renewable energy systems are offered rebates for those systems.

Preston Municipal Electric Utility Renewable Energy Rebate (Residential/Commercial)

Subscribers to Preston Municipal Electric Utility who purchase and install renewable energy systems are offered rebates for those systems.

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers and commercial business owners are granted a tax credit of 30% of the total expenses, which include installation of solar-electric (photovoltaic) systems, solar thermal systems, fuel cells and labor expenses.  Residential and commercial wind energy installations and geothermal pumps are also eligible for the Federal energy tax credit.  

Federal Energy Conservation Subsidy Exclusion (Residential)

Energy-Efficient Mortgages (Residential)

Example: 4KW System – Residential Installation Cost

Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50

- Estimated System Cost: $26,000
- Federal/State Tax Credit: $7,800
- State/Utility Rebate: $0
- Net Cost: $18,200
- Cumulative Lifetime Savings (25 Years): $14,744
- Investment Return: 2.0%

Savings of 30% on the total cost of your solar system through incentives

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Iowa Energy Tax Credit
Iowa Energy Tax Credit
Solar Panels as investment