There are now more than 3.3 million solar energy systems installed in the United States. In 2021, a new solar project installed every 60 seconds, highlighting the immense appeal of solar panels today. It is expected that 13% of US homes will have a solar system by the end of the decade.
If you are considering making the switch to solar energy, it is important to understand the upfront costs. In this blog post, we will ask how much do solar panels cost in Iowa? In addition to the average installation costs, we will also highlight both the state and federal tax credits open to homeowners in Iowa.
How Much Do Solar Panels Cost in Iowa?
The average cost of installing a solar panel system in the system is $11,238 (after factoring in the federal solar tax credit). Every home will be different, depending on its exact location, the size of the property, and the type of solar panel system that is installed.
Let’s take a look at Adair County as an example in Iowa. A household here with an average utility bill of $184 would require a 5.6 kW solar system. The average cost of installation (after applying the federal tax credit) would be between $11,088 and $13,552.
While the upfront cost is quite high, it’s important to consider the long-term benefits. Over the 25 years of the solar system, the net profit (which is the savings minus the upfront system costs) is estimated at between $46,188 and $56,452.
What Tax Incentives Are Available In Iowa?
For the rest of 2022, the aforementioned federal solar tax credit will stand at 26%. This figure is due to drop to 22% in 2023 and expire at the end of next year unless the tax credit is renewed by Congress. That means this year is the best time to install solar panels on your property.
There is additional good news for residents in Iowa with the availability of a state tax credit. This is equal to 50% of the federal solar tax credit. Combined, the two tax credits offer significant savings on the upfront costs of installing solar panels.
To maximize the savings on the state tax credit, it is best to install solar panels this year given that the federal tax credit still stands at 26%. If you are interested in learning more about solar panels in Iowa, be sure to check out this great resource.
Understanding Solar Panel Cost In Iowa
If you are interested in making the switch to solar energy in Iowa, this year is the most opportune time to do so. The cost to install solar panels is offset by the enormous potential for savings on energy bills over the lifespan of a solar system. It’s worth remembering that solar panels, with proper care, can work for 40 to 50 years.
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