The Hawkeye State is blessed with abundant sunshine, making it an ideal location to invest in a solar energy system. While Iowa has gradually embraced solar power, the solar market has already gained significant popularity. As the importance of renewable energy continues to rise, solar systems are becoming increasingly economical and accessible.
Iowa offers numerous solar incentives, rebates, and benefits that make investing in solar energy a smart choice, both from an economic standpoint and in reducing carbon emissions to combat climate change.
Iowa’s Solar Incentives, Rebates, and Benefits
Net Metering in Iowa
Iowa was among the pioneering states to establish net metering laws in 1984. These robust net metering regulations serve as a valuable incentive for Iowa residents. Net metering allows solar panel owners to connect their renewable energy generators to the public utility grid, offsetting the cost of the energy they draw from the utility with credits earned from their production. If your system produces more power than you need, the excess is sold to the grid, resulting in credits on your power bill – a surefire way for property owners to save money.
Interconnection Standards in Iowa
Interconnection standards regulate how solar and other electrical generation systems can be connected to the power grid. Iowa’s strong interconnection standards streamline the installation process for utility companies, reducing costs and enhancing the reliability of net metering.
Performance-Based Incentives (PBI) in Iowa
Conveniently, Iowa offers substantial Performance-Based Incentives (PBIs), which are solar incentives based on the actual, metered power generated by your solar system. These payments, known as Power Performance Payments, are determined by the number of kilowatt-hours (kWh) or BTUs produced by your renewable energy system. The electricity produced is credited as Solar Renewable Energy Credits (SRECs), which have a value that varies based on supply and demand principles. SRECs provide an exceptional opportunity to help your solar system pay for itself.
Iowa Solar Property Tax Exemption
In Iowa, the cost of a new solar system installation is exempt from property taxes for the first five years. This means that for those five years, you will not be charged any property taxes on the assessed cost of the solar system. However, you will still be obligated to pay property tax based on the assessed value of your property before installing the solar system – a solar incentive worth investing in!
Iowa Solar Sales Tax Exemption
When an Iowa property owner invests in solar panels, they become eligible for a sales tax exemption. This means that no sales tax will be applied to the cost of the installed solar system, resulting in potential savings of up to 7% from the outset.
Solar Easements and Rights Laws in Iowa
Iowa has existing Solar Easements and Rights Laws that aid property owners in working with their neighbors to ensure access to solar installation and guarantee sufficient sunlight exposure. These laws prohibit homeowners’ associations from obstructing a property owner’s solar system.
Don’t Forget About the Federal Tax Credit, Iowa!
In addition to the attractive solar incentives, rebates, and exemptions available in Iowa, property owners may also be eligible for a substantial tax credit from the Federal government. The Solar Investment Tax Credit (ITC) equals 26% of the solar system’s cost and can be deducted from the property owner’s Federal income tax. This credit is available to individuals who purchase their solar system outright with cash or a loan, but not to those who lease it. In the case of a leased system, the solar incentives go to the third-party owner – a compelling reason to buy rather than lease a solar system.
Iowa’s Solar Incentives and Rebates at a Glance
There are several compelling reasons why investing in a solar energy system is an excellent choice for property owners in the Hawkeye State. The improved and enhanced solar equipment, the reduced cost of solar panels, and the conventional electricity rates have all contributed to the growing appeal of solar power. However, the most significant factor is the substantial savings a property owner can realize by switching to solar!
To fully understand the Iowa solar incentives, rebates, and benefits you can reap, discuss your options with a reputable solar company today!
