Iowa Solar Energy Incentives and Net Metering

Iowa is a largely agricultural state and ranks 5^th in the nation for per capita energy consumption. Although they are not a leader in terms of solar policy, ranking 23 ^rd in terms of solar policy, Iowa was the first state in the country to require its investor-owned utilities to obtain a certain percent of their total power from renewable energy. The state has further joined in on the debate on net metering, with the Iowa Utilities Board considering putting a cap on net metering as early as April 1 ^st, 2017. While current users will be able to keep their current rates, installers and solar proponents worry that the cap hinder homeowners and businesses from adopting solar. The Iowa Utilities Board ensures that the tariff will be temporary, and will only be in affect over a three-year study period. The coalition of solar companies and nonprofit groups is actively working on trying to sway the decision in their favor with an online petition.

Regardless of its rankings in terms of solar policy and the debate over net metering, Iowa offers a number of incentives to homeowners and businesses that help alleviate some of the costs of the initial investment into renewables. The Renewable Energy Equipment Exemption, available for wind, solar, and hydroelectric, ensures that all renewable equipment purchased is tax free. The Kalona Renewable Energy Purchase Rate is a performance-based incentive available for solar and wind systems. In order to take advantage, homeowners must participate in the Green Power Project, and be a member of its Cooperative as well as signing a ten-year contract. The Green Power Project pays members $0.0125 per kilowatt hour for 100% of energy consumption through a renewable, as well as an additional $0.06 for energy sold back to the grid.

The widest spread incentive is the Aliant Energy Residential Efficiency Rebate, which covers insulation, heat pumps, programmable thermostats, and other high-efficiency HVAC systems. It will cover up to 50% of all installation costs covered including:

• Central Air Conditioners: $200-$500
• Air Source Heated Pumps: $300-$600
• Geothermal Heat Pumps: $1,600-$3,200
• Programmable Thermostats: $10-$50
• Tank Water Heater: $75
• Electrical Heat Pump Water Heater: $300
• Ceiling/Foundation/Wall Insulation: 70% of Total Installation Cost up to $750
• Caulking/Weather Stripping: 70% of Total Installation Up to $250
• Room Air Conditioners: $20
• Solid/Thermal Entry Door: $10-$25
• LEO & CFL Bulbs: 50% of Cost

See the list below for additional incentives and rebates as well as state regulations in Iowa.

Renewable Energy Incentives

Regulatory Policies