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#22 Solar ROI State

Solar Panel ROI in Iowa (IA)

Iowa averages 1,250 kWh per installed kW per year. At $13.8¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $9,904.

$8,965
System Cost (After Credits)
$9,904
25-Year NPV
8 years
Payback Period
$0.118/kWh
Solar LCOE

Solar Cost Breakdown in Iowa

7 kW system (2.85/W)$19,950
Federal ITC (30%)-$5,985
Iowa state credit (50%, capped at $5,000)-$5,000
Net Cost$8,965

Solar Production in Iowa

Iowa receives an average of 1,250 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 8,750 kWh in year one, declining by 0.5% annually due to panel degradation.

At Iowa's average residential rate of $13.8¢/kWh with 4% annual escalation, first-year savings are $1,208. The solar LCOE of $0.118/kWh is 14% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Iowa

1:1 net metering for systems up to 500 kW

Solar FAQ for Iowa

How much does solar cost in Iowa?
A typical 7 kW residential solar system in Iowa costs $19,950 before incentives. After the 30% federal ITC and $5,000 state credit, the net cost drops to $8,965.
What is the solar payback period in Iowa?
Based on the average IA utility rate of $13.8¢/kWh and local solar irradiance of 1,250 kWh/kW/year, a 7 kW system typically pays for itself in 8 years. The 25-year NPV is $9,904.
Does Iowa have net metering?
1:1 net metering for systems up to 500 kW
What is the LCOE of solar in Iowa?
The levelized cost of solar energy in Iowa is approximately $0.118/kWh, compared to the current average utility rate of $13.8¢/kWh. Solar electricity costs 14% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Iowa?
Iowa receives approximately 1,250 kWh of solar energy per installed kW per year. A 7 kW system produces about 8,750 kWh in its first year, enough to offset 83% of the average U.S. household's electricity consumption.

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Solar ROI in Similar States

Maryland

NPV: $8,768 · Payback: 10yr
Rate: $15.8¢/kWh · #14 ranked

Rhode Island

NPV: $24,104 · Payback: 7yr
Rate: $26.8¢/kWh · #15 ranked

Illinois

NPV: $7,460 · Payback: 10yr
Rate: $16.2¢/kWh · #16 ranked

South Carolina

NPV: $10,528 · Payback: 8yr
Rate: $13.2¢/kWh · #17 ranked

Texas

NPV: $10,835 · Payback: 9yr
Rate: $13.8¢/kWh · #18 ranked

Pennsylvania

NPV: $7,155 · Payback: 10yr
Rate: $16.2¢/kWh · #19 ranked

Get Your Iowa Solar Analysis

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