Iowa may not be the first place you think of for solar power. But the economics of solar energy have improved dramatically, making solar a cost-effective option for many Iowa homeowners ready to take control of their energy bills.
In this detailed guide, we analyze the ins-and-outs of going solar in Iowa. You‘ll learn how to right-size a solar system, project cost savings, find the best installers, and leverage incentives. Let‘s dive in and see if solar power can save you money over the long run.
Surging Solar Growth in Iowa
While adoption had been slow, solar energy is having a breakout moment in Iowa. Some key figures:
- 2021 saw the launch of Wapello Solar, the state‘s largest array to date, now powering over 16,000 homes.
- Falling solar panel prices have shortened payback periods, making adoption more attractive.
- With ample open space, Iowa has potential for over 5,800 gigawatts of solar power, dwarfing the state‘s electricity needs.
For homeowners, this growth means solar incentives are improving, installers have greater expertise, and a system purchased today can potentially save tens of thousands over its lifetime.
This article looks at the ins and outs of deciding if and how to go solar in Iowa. We‘ll move through the cost-benefit analysis, system sizing, vetting installers, projecting savings, and dissecting incentives.
Calculating the Cost of a Solar System in Iowa
We‘ll start by reviewing current average costs to purchase and install solar panels in Iowa. These costs can vary significantly over time with market conditions, so we‘ll focus on late 2022 numbers.
Iowa Solar Panel Cost Breakdown
Based on September 2022 installer data, you can expect to pay around $2.53 per Watt for a residential solar system in Iowa. At this rate, here‘s the full purchase and installation cost before incentives for sample system sizes:
| System Size | Total Pre-Incentive Cost |
|---|---|
| 4 kW | $10,120 |
| 6 kW | $15,180 |
| 8 kW | $20,240 |
| 10 kW | $25,300 |
To contextualize whether these prices offer savings potential, we need to understand how they compare to average utility costs over time.
How Iowa Solar Costs Compare to Electricity Bills
As a benchmark, the typical Iowa home uses around 865 kWh of electricity each month, costing about $120 on average. Over 10 years, that totals over $14,000 spent on electricity.
To establish whether solar could save money over simply sticking with your utility, we need to understand long term electricity costs. Here is the monthly and yearly average spend along with projected 10-year totals if rates rise 2% annually:
| Year | Annual kWh Use | Average Monthly Bill | Annual Cost |
|---|---|---|---|
| 2022 | 10,380 kWh | $120 | $1,440 |
| 2023 | 10,580 kWh | $123 | $1,469 |
| 2024 | 10,780 kWh | $125 | $1,499 |
| Total 10 Years | 105,800 kWh | – | $15,186 |
*Projections assume 2% avg annual utility rate increases
This table gives us a good baseline. Over the next decade, sticking with your utility could cost over $15,000 at current rates. As we‘ll see next, solar can beat those costs over time while protecting you from rate hikes.
Key Takeaways on Iowa Solar Costs
In summary, current average solar costs in Iowa come to around $2.50/Watt, with a 6 kW residential system running about $15,000 pre-incentive. But with incentives and 25+ years of free solar power after payoff, systems can save $15,000+ over their lifetime compared to utility bills.
Now that we have a handle on costs, next we‘ll right-size a system to match your home‘s needs.
How to Right-Size Your Iowa Solar System
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And there you have it – a detailed walkthrough on whether solar power makes sense for you based on Iowa‘s economics. Reach out below with any other questions!
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Frequently Asked Questions
How much do solar panels cost installed in Iowa?
On average, you can expect to pay around $2.53 per Watt. So a 6 kW system would cost around $15,180 installed before claiming the 26% federal tax credit.
What is the break-even point for solar panels in Iowa?
With incentives and projected utility rate increases, most Iowa solar installations reach the break-even point in 9-11 years. After that you‘ll see 20+ years of free electricity.
What size solar system do I need in Iowa?
It depends on your household‘s electricity usage…[explanation continues]
What is the payback period for solar in Iowa?
The average Iowa solar setup breaks even in around 10.5 years when accounting for available incentives. Larger systems break even slightly faster.
How many solar panels would my home need?
The number of panels depends on your roof size and orientation, along with household electricity demand. For a typical Iowa home, you‘d need around 18-22 panels for a 6 kW system.
