Wind power has had a headstart, but solar energy in Iowa is moving towards realizing its potential. With Iowa’s central location in the middle of the United State, where importing fuels increases energy costs, diversification of renewable energy sources has become a priority in the Hawkeye State. Even when dark and snowy Iowa winters are taken into account, the average annual sunlight hours and clear sunny days makes solar power a great investment.
Iowa solar panel installation costs have fallen 45 percent over the last 5 years. Even better, Iowa solar power incentives, along with federal tax credits, could make solar energy for home or business more affordable than you think. And the benefits stack together for maximum savings – qualifying for one solar incentive doesn’t disqualify you from another.
30% Federal Solar Tax Credit
Thanks to the 2022 Inflation Reduction Act, the federal solar tax credit incentive has been increased and extended! Instead of falling to 22 percent in 2023, it was raised from 26 percent to 30 percent through 2032. That’s more than one-quarter of the cost of your solar power system covered before you even start looking at additional incentives.
Iowa solar sales tax & property tax exemptions
Iowa solar panel installations are exempt from sales taxes and property taxes! This means that if your solar panels increase the value of your home, it won’t increase the costs of the taxes you pay on the property for at least 5 years. With the sales tax exemption, you automatically save up to 6 percent instantly. Remember that these incentives stack together – using one solar incentive doesn’t stop you from using others.
Iowa net metering
Net metering is a process by which extra electricity produced by your solar power system is sent into the utility grid in exchange for credits on your energy bill. Later, at a time when your property consumes more power than your solar panels are generating, those credits can pay for the electricity you use. Net metering is available to 89 percent of Iowa residents, particularly customers of MidAmerican Energy and Interstate Power and Light (IPL).
Ames Iowa solar panel rebates
The City of Ames offers a variety of rebates for residential customers that make energy efficiency improvements to eligible homes, including the installation of solar panels. Solar photovoltaics installation in Ames could net an extra rebate of $300 kW.
All Energy Solar is a full-service and licensed Iowa solar panel installer that can help to ensure you take advantage of as many programs for which you may qualify. Contact us for a free quote that can show what solar power can do for you.
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