Home solar in Iowa

Net metering Net metering changing

MidAmerican and Interstate Power and Light (Alliant) use inflow-outflow billing: power is measured each hour, you pay normal rates for what you take from the grid, and power you send out earns a dollar credit at the retail per-kWh rate (with riders). Credits offset future per-kWh charges; leftover credits are forfeited once a year (January or April, your pick). That retail export rate is locked for 20 years for each system. Systems must be behind your meter, 1 MW or less, and sized to no more than 110% of your yearly use. Municipal utilities and co-ops set their own rules. Source

• 2020-11-24: MidAmerican inflow-outflow tariff approved
• 2020-12-30: IPL inflow-outflow tariff approved
• 2027-07-01: after this date a utility may petition for a value-of-solar rate (or sooner if statewide solar reaches 5% of peak demand; it was 3.90% in 2025)
• 2027-07-01: earliest date a utility may propose a separate rate class for solar customers (if no value-of-solar rate before then)

Solar credits (SRECs) No market

Iowa has no SREC market for home systems. Source

Taxes

Property tax: Partial: a new solar system does not raise your home's assessed or taxable value for five full assessment years (Iowa Code §441.21(8)(b)).
Sales tax: Exempt: no sales tax on solar energy equipment that collects and converts sunlight or carries that power to storage or use (Iowa Code §423.3(90)). Source

Solar laws

• SF 583 (2020), Iowa Code §476.49 (2020). Put net billing and inflow-outflow billing into law for MidAmerican and IPL, set the retail export rate locked for 20 years, bans extra fees on solar customers, and sets the 2027 or 5% trigger for a value-of-solar study. Source
• Iowa Code §423.3(90), sales tax exemption (2006). Solar energy equipment is exempt from sales tax. Source
• HF 2672 (2026), community solar bill (2026). Would have created a community solar program; it was amended in the House in March 2026, but no final passage was found. Source

Community solar

No statewide program: a 2026 community solar bill (HF 2672) did not become law as far as could be found; some municipal utilities and co-ops run their own shared solar.

Timeline

1. 2006 Sales tax exemption for solar equipment enacted
2. 2020 SF 583 signed: net billing and inflow-outflow billing set in law
3. 2020-12-30 IPL inflow-outflow tariff approved (MidAmerican's approved 2020-11-24)
4. 2022-01-01 State solar tax credit stops covering homes
5. 2025 Statewide distributed solar reaches 3.90% of peak demand (5% triggers value-of-solar)
6. 2025-12-31 State solar tax credit program ends for businesses too
7. 2027-07-01 Utilities may petition for a value-of-solar rate after this date

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

• Iowa Code §476.49 (2026), billing for distributed generation
• Iowa Utilities Commission, distributed generation page
• LSA Fiscal Topics, Solar Energy System Tax Credit (Nov. 10, 2025)
• Iowa Code §441.21, property assessment
• Iowa Code §423.3, sales tax exemptions
• EIA Electric Power Monthly Table 5.6.A

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options