With government incentives and programs to help supplement the cost, plus other savings from home energy efficiency upgrades, there’s no better time than now to switch to renewable sources of electricity. But how much do solar panels cost?
If you live in Iowa, understanding the cost of solar panels is about finding the right balance between upfront investment and long-term savings.
In this post, Wolf River Electric gives an overview of what to expect when purchasing and installing solar panels so that you can make an informed decision before committing to going green.
We’ll walk through everything from average costs and incentives available to tax credits and what kind of system works best for your particular needs.
The Average Solar Panel System In Iowa Costs
Iowa’s average solar panel installation costs ranges from $15,512 to $25,000. On a cost-per-watt ($/W) basis, a solar panel plus installation in Iowa ranges from $3.10 to $4.20. Broken further down, this range can be divided into the following categories:
Small Solar Panel System (2-5 kW): $15,512 – $18,000
Medium Solar Panel System (5-9 kW): $19,000 – $21,500
Large Solar Panel System (10-20 kW): $22,000 – $25,000
These figures include the cost of equipment, labor, and applicable rebates. According to Solar Energy Industries Association, Iowa residents can see a return on investment (ROI) of 15% over their 20-year system lifespan.
Major Factors Affecting The Cost Of Solar Panel Systems In Iowa?
Number of Solar Panels You Install
The more solar panels you install, the higher the total cost. Your chosen system’s size and wattage rating also helps determine how many panels are needed. Most importantly, consider future energy needs when deciding the number of solar panels to install.
Installing Solar Company
When looking for solar installers, compare quotes from multiple solar companies and ensure they are reputable. Ask about their experience with similar projects, available warranties, and any additional fees or costs.
Brand and Type of Solar Panel
Higher-efficiency panels are more expensive but produce more electricity over time, reducing long-term costs. You can also consider brands that offer incentives such as tax credits or discounts on installation.
How To Get The Best Solar System Prices In Iowa
If you’re looking to reduce the cost of your solar system in Iowa, there are several incentives and tax credits available at both the state and local levels that can help. Iowa Solar Incentives include:
1. Federal Tax Credits
Also known as the Federal Solar Investment Tax Credit, this is a federal incentive for homeowners installing solar energy systems. This tax credit gives homeowners a 26-30 percent tax credit off the total cost of their solar system, making it an attractive option for those looking to reduce their energy bills and move toward a renewable energy system.
2. Iowa Solar Tax Credit
The Iowa Solar Tax Credit provides a 15 percent state income tax credit for homeowners who install solar energy systems on their property. Iowa residents get additional savings beyond what the federal government provides, allowing them to save even more on their investment in solar power.
3. Net Energy Metering In Iowa
Net Energy Metering offsets the cost of monthly energy bills of the residents, letting them generate their renewable energy. Residents pay only for the net energy they use from the grid and get credit for any excess energy their solar system produces.
4. Solar Property Tax Exemptions
For every solar property owner, Iowa offers the opportunity to save money with a solar property tax exemption. This incentive exempts the value added to the taxpayer’s home because of the installation of a solar energy system from any increases in property taxes.
5. Residential Clean Energy Credit
The Residential Clean Energy Credit is a state-funded program that provides financial support for those who install solar panels on their property. This credit helps offset installation and equipment costs, allowing homeowners to make renewable energy even more affordable.
Solar Financing Options In IA
Cash Purchases- Cash purchase is the most straightforward financing option available. This means you pay for your solar system upfront in a single lump payment.
Solar Loans-With this type of financing, banks or other financial institutions provide an amount of money at a specified interest rate. This loan then needs to be paid back over a period of time.
Solar Leases- Solar leases allow you to make monthly payments for the use of the solar system to a solar industry, and once the lease term is over, you can either purchase the system or have it removed.
Frequently Asked Questions
The cost of a residential solar system in Iowa ranges from $18,000 to $ 27,000 before applicable tax credits and other incentives. This range is roughly in line with what is seen across the United States; however, the cost of installing a solar system in Iowa is slightly lower than the national average due to various state incentives.
The amount you can save by going solar in Iowa depends on the size and type of system you install and your energy usage. However, installing a typical 5kW PV system will generate around $1,000 in electricity savings over 20 years. That’s $50 a year, which can grow if energy costs increase.
Solar energy panels require relatively low maintenance. Most systems don’t require any maintenance other than an occasional cleaning. Some systems may require additional maintenance, such as inverter replacement, panel replacements, and wiring repair if they are affected by extreme weather or other events. However, these costs are typically minimal.
Conclusion: Iowa Solar Panels Are Worth It
Solar energy is worth it for homeowners in Iowa. Solar energy pays for itself repeatedly and helps reduce emissions and make a more environmentally friendly home. Homeowners should consider the installation cost and how much electricity they will use when determining whether or not to go solar. All of these factors are key when making this important decision to go solar.
Ultimately, renewable energy is a wise investment that will help save money in the long run while also helping the planet.
Why not check out the cost of solar panels in Iowa today to see just how feasible going solar really is?
Contact us here at Wolf River Electric to get a free quote today!