There are approximately 200 sunny days in Iowa each year, similar to the national average, making the state well-suited to reap the benefits of solar panels. Solar energy is becoming increasingly mainstream in the US, thanks in part to its environmental advantages and its cost-saving potential.
If you are a homeowner in Iowa and are considering making the switch to solar, then this blog post is for you. Here, we will highlight whether or not it is worth it to get solar panels in the Hawkeye State. Here’s a hint — it absolutely is!
Utilize Attractive Tax Credits
Iowa homeowners are eligible for not one but two solar panel tax credits to help offset the upfront cost of solar. Firstly, there is the federal solar tax credit.
This currently stands at 26%, though it will decrease to 22% at the end of 2022 and expire at the end of 2023. We recommend that you make the most of this 26% rate by installing solar panels on your property within the current year.
The expenses that are covered under the federal solar tax credit include:
- Solar panels
- Labor costs
- Energy storage devices
- Balance-of-system equipment
- Sales tax on eligible expenses
Secondly, homeowners in Iowa can claim the state tax credit. This personal tax credit is equal top 50% of the federal tax credit’s 26%. For example, a $15,000 solar system would qualify for a $3,900 federal tax credit and an additional $1,950 state tax credit (total $5,850).
Long-Term Savings on Home Energy Bills
Solar systems have a 25-plus year lifespan that allows homeowners to save tens of thousands on their home energy bills. In Iowa, the average cost of a solar system is between $11,000 and $13,500. The average net profit (savings minus the system cost) is between $46,188 and $56,452.
Based on the average Iowa electric rates over the next 25 years, homes with solar panels will pay 21 cents per kWh. This is compared to just 5 cents per kWh, a significant difference.
Solar panels also help to boost the resale value of properties in Iowa. Research shows that mid-sized homes with solar panels sell for around $15,000 more than homes without solar panels. This is because installing solar panels is viewed as a home upgrade similar to a renovated kitchen or a finished basement.
The other good news is that solar panels are highly durable and require very little maintenance. A good-quality system can continue to generate electricity for 40-plus with routine maintenance.
Should I Get Solar Panels in Iowa?
The bottom line is that solar panels are absolutely worth it in Iowa. Given that solar is a clean and abundant energy resource, it is better for the environment than non-renewable energy sources such as coal and oil. On top of that, solar panels are also very kind to Iowa homeowners’ pockets.
If you are wondering how to get solar panels, speak to a local solar installer for more information.
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