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Discover the Power of Solar Energy in Iowa!

Welcome to Iowa, a state renowned for its expansive landscapes, from rolling plains to picturesque farmlands, and an emerging advocate for renewable energy. With a favorable climate that includes ample sunlight during the growing seasons, Iowa presents a fertile ground for the adoption and expansion of solar power. This potential offers a unique opportunity for homeowners, farmers, and businesses to harness clean, renewable energy, complementing the state?s leadership in wind power with a strong commitment to solar. Enhanced by attractive incentives aimed at reducing the upfront costs and spurred by a community increasingly dedicated to sustainable living, Iowa is setting the stage for a significant leap in solar energy usage. Learn how leveraging Iowa?s solar resources can illuminate your homes and barns, decrease energy expenses, and contribute to a healthier, more sustainable environment right here in the Heartland. Join us in capturing the sun?s limitless power and stepping into a brighter, more eco-friendly future in Iowa.

Solar State Incentives

Iowa State Solar Incentives

IADG Energy Bank Revolving Loan Program
IEDA and IADG offer low-interest financing for Iowa businesses to improve energy efficiency, implement renewable energy projects, and create jobs.
City of Dubuque - Solar Thermal Licensing Requirement
Dubuque requires a Solar Thermal License for installers, obtained via NABCEP certification or NICC training, plus a permit. Iowa only requires an electrical license.
Waverly Light & Power - Residential Solar Thermal Rebates
WL&P offers rebates for residential solar hot water heating systems with pre-approval and county permit. Limited funding available.
Ames Electric Department - Residential Energy Efficiency Rebate Programs
Ames Electric Services offers services and rebates for energy-efficient appliances and home improvements, including a Net Zero Ready Home Rebate for new homes.
Waverly Light & Power - Residential Energy Efficiency Rebates
Waverly Light and Power offers rebates for energy-efficient practices and appliances, including weatherization measures, to reduce energy use and bills.
Ames Electric Department - Commercial Energy Efficiency Rebate Programs
Ames Electric Department offers free energy audits and multiple energy efficiency rebates for commercial and industrial customers.
Interconnection Standards
Iowa Utilities Board updated interconnection rules for distributed generation facilities in 2017. Standards apply to facilities up to 10MW that are not subject to federal requirements.
Net Metering
Iowa changes net metering rules, allowing utilities to file 'inflow-outflow' tariffs before 2027. Utilities such as MidAmerican Energy and Alliant Energy have increased system size limit to 1 MW.
Alternative Energy Law (AEL)
In 1983, Iowa became the first US state to adopt a renewable portfolio standard (RPS), requiring its utilities to produce 105 MW of renewable energy.
Mandatory Utility Green Power Option
Iowa electric utilities must offer customers the option to support renewable energy through green power programs, bolstering the state's green energy future.
Property Tax Exemption for Renewable Energy Systems
Iowa offers property tax exemptions for solar, wind, and geothermal energy systems. Solar and wind systems are exempt for 5 years, while geothermal systems get a 10-year exemption.
Renewable Energy Equipment Exemption
Iowa exempts sales tax on the total cost of solar, wind, and hydroelectricity equipment, promoting renewable energy usage.
Iowa Solar Easement and Access Laws
Iowa's solar access easement provision allows for sunlight access to operate solar energy systems, with easement applications referred to a solar access regulatory board or local district court.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.