You might think that because Iowa’s homeowner solar tax incentive ended in July 2021, you can’t still save on solar in Iowa.
But just because the state level incentive has ended in Iowa, that doesn’t mean there aren’t other options for Iowans to make the switch to solar and still save
Keep reading to learn more about the different ways to save on solar in Iowa even without the Iowa state solar tax incentive!
You Still Have 8 Months to Save 26% on Solar
Despite Iowa no longer offering a solar tax incentive, homeowners in the Hawkeye state have another option to save. The Solar Investment Tax Credit (ITC) is a federal incentive that homeowners can claim when they invest in renewable energy at home.
If you make the switch to solar before December 31st, 2022, you can claim the solar ITC and recoup 26% of your solar installation costs as a credit on your taxes!
It’s worth going solar now to make sure you can take advantage of that 26% tax credit before the end of 2022. Why? Because the tax credit will be dropping to 22% on January 1st, 2023, and ending completely in 2024.
Think 26% doesn’t sound like a lot? Let’s take a look at how much it could save you.
Say for instance your solar energy system costs you about $15,000. With the solar tax incentive, you could save $3,900 on the cost of your solar installation. You could use that extra money you’ll get back with your tax return to pay off more of your system, invest in another home project, or stow it away for a rainy day.
With the savings from the Solar Investment Tax Credit, your system would end up costing just $11,100! If you’re switching to solar and wiping out your power bill of $100/month, you’ll have your system paid off in just 10 years!
But that’s not all, there is still one more key way homeowners in Iowa can save with a switch to solar.
Save with Solar and Net Metering
Don’t just stop at claiming that Federal ITC. You can save with solar without having to do any extra paperwork! How? With net metering.
In Iowa, net metering allows homeowners with solar to receive a credit for any excess energy produced by their solar panels. When your panels produce excess energy, it heads back onto the grid where it helps your whole community be more green.
The credit you receive for every kilowatt you send back can be used to cover periods of lower solar energy production, like during a blizzard or the middle of the night.
That way, your solar is still powering your home year round, and you get the perks of a solar battery bank without having to invest the extra thousands of dollars and hours of maintenance in one
We’re Not Done Helping You Save with Solar!
There’s one more major way to save on solar in Iowa.
Every solar energy system installed is exempt from Iowa’s 6% sales tax. That exemption includes the total cost of the products, installation, and materials used when you install solar!
When you couple Purelight Power’s $0 down, nothing out of pocket program with these savings options, you can go solar and save thousands of dollars!
The best part? Your monthly bills won’t change. When you wipe out your current power bill with our zero down solar, and replace it with a lower flat payment that never goes up you will see savings in your first month.
How Much Could Solar Save You?
Curious about how much money those solar incentives and rebates combined could save you?
Let’s use the example of an Iowan homeowner who invests in a solar energy system that in total costs $25,400.
First, let’s subtract the savings from the solar ITC: $25,400 (total cost of system) x 26% (Federal ITC) = $6,604
$25,400 (total cost) – $6,604 (solar ITC) = that solar system now costs just $18,796!
If your solar system weren’t exempt, you would have had to pay $1,524 from Iowa’s 6% sales tax as well. Just by going solar in Iowa you save another $1,500!
But how does net metering help you save? When you couple net metering with your low, locked in monthly payment from Purelight, you can save months to years off your payback period.
If your power bill was already around $200, with your power bill wiped out and your solar payment replacing it at $200, your system would be paid in full in about 10 years.
Net metering means that you don’t have to worry about paying for any extra electricity on top of that, as your system creates a cushion of credits with the power company for you to draw on. Net metering saves you money every month during shorter winter days, or unexpected spring storms.
Don’t Miss Out on Solar Savings!
Ready to take advantage of all these savings to go solar? As your top rated solar company in Iowa, Purelight Power is here to maximize your savings for you and your home!
Let us wipe out your current power bill and make switching to solar affordable with our $0 out-of-pocket program.
Find out if your roof qualifies for $0 down solar in just 30 seconds.