Cost of solar panels in Iowa (2025)

How much do solar panels cost in Iowa?

With professional installation, a typical 8-kilowatt residential solar panel system in Iowa costs $24,960. That price drops to $17,472 after the full federal solar investment tax credit (ITC). The size of your solar panel system is another big factor in your overall solar costs.

The average size of solar systems in Iowa is 8.7 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system. Not surprisingly, the smaller your system, the less you pay. On the higher end, Jennifer in Colfax told us her family’s solar panel system cost $38,000.

The table below doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you go off-grid.

Average solar installation cost by system size in Iowa

Are solar panels worth it in Iowa?

Most solar customers we’ve talked to in Iowa say solar is worth it. In the best-case scenario, you can almost completely eliminate your monthly utility bill. Solar doesn’t work for everyone, though, and there are potential downsides to consider.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

One resident, Connor in Dubuque, told us: “I think I easily got my money back in savings since I got my solar power panel installed in my house.” For others, like Allissa in Decorah, it’s worth it for the ecological benefits. “I am very glad I made this purchase because I know it is good for the environment and the future,” she told us.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

If your house is a good candidate for solar panels, it’s at least worth considering. Over 25 years, homeowners with solar panels avoid $55,871 in utility costs on average. Solar panels will save you even more if you also have an electric vehicle.

Solar panel installation cost factors in Iowa

Your equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

System size

Most installers price systems according to their wattage or “cost per watt.” Similar to the price per square foot when you buy a house, this helps you compare the value of solar energy systems in different sizes. The average solar panel installation costs $2.96 per watt in Iowa.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Solar panel efficiency is a measure of how well a panel makes electricity. While more efficient panels cost a little more, you save by buying fewer panels. The more efficient your panels are, the fewer you need to power your home.

Additional equipment

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone system for $80 to $400.

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before you go solar.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can.

Other cost factors

Permits and interconnection fees, though relatively cheap, are worth mentioning. Most towns require permits for solar installation. This can add hundreds of dollars to your solar bill. Also, solar panels require minimal maintenance, but potential repair or replacement of components, periodic cleaning and system monitoring add to the lifetime cost.

How to save money on solar panels in Iowa

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Iowa.

Compare quotes

Get quotes from at least three or four different solar companies in Iowa. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.

Lower your electrical loads

Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.

Use incentives

Solar incentives in Iowa include a 100% sales tax exemption on solar photovoltaics (PV panels). The federal solar investment tax credit (ITC) is still the best financial incentive for most homeowners going solar. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

There is also a five-year solar property tax exemption on solar in Iowa. This means that your property tax bill won’t go up because your solar panels increase the market value of your home.

Federal solar tax credit expires at the end of 2025

The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.

» MORE: Why are solar panels so expensive?

How can I pay for solar panels in Iowa?

You can pay upfront, but most people finance or lease. A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough power to make up for the cost of the loan.

Solar leases and power purchase agreements are a great way to set up a system without the high upfront costs. A potential downside to both is that you are not eligible for the same tax incentives.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Iowa

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Iowa.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on the system's size, local labor rates and available incentives. Iowa homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

Solar costs vs. savings: Iowa and nearby states