National Tax Day is approaching! Don't forget to claim a 30% Solar Tax Credit for your solar system. Read about Solar Tax Credit.
Iowa has enough sunshine to let your PV system pay for your electricity bills, or at least significantly cut them. To cut the upfront solar panel installation costs, use solar incentives in Iowa — read about them in this article.
Key takeaways
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Solar laws in Iowa allow customers of all investor-owned utilities to join net metering programs. In total, the program is available to almost 90% of residential customers in Iowa. Hence, households have the option to send the excess electricity back to the grid instead of storing it with battery banks. When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. In Iowa, their value is equal to full retail electricity price. If you accumulate any unused credits, they will be purchased from you annually at the avoided cost rate. Check to see if the service company has any kw requirements for your system.
In Iowa, solar equipment is exempt from the state’s sales tax, meaning these additional 6% stay in your pocket. Solar equipment includes any device used to convert sunlight into energy. Anything needed to prepare the energy for storage or put it to use is also subject to the exemption. Thus, everything you need to build a PV system of any scale can be bought tax-free in Iowa.
A solar PV system installed in a home increases its value by about 4%, says the Zillow report. In Iowa you don't have to pay extra taxes during the first few years. According to state laws, 100% of the value added as a result of a solar PV system installation shall be exempt from taxation for 5 full assessment years.
4%
this is how much solar panels increase the value of your house
A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure a stable supply of sunlight for your PV system for years to come. A solar easement protects your panels from potential impairments, such as vegetation and structures. It is voluntary and must contain the description of protected space, a list of restrictions and a clause on revision or termination of the contract. Once signed, it is tied to the land, not the owner.
Any such agreement must be created in written form and must meet the general requirements for legal contracts. If a solar easement can’t be obtained in a voluntary manner, the issue may be taken to the solar access regulatory board or to the district court.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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