Iowa receives sufficient sunlight in a year which is conducive to investing in a solar system. Although Hawkeye State has gradually embraced solar energy, the solar market has already become popular. And as it keeps rising in importance, the prediction is that the solar energy system will be more economical and obtainable.
There are numerous solar incentives, rebates, and advantages of investing in solar energy in Iowa, both from an economic aspect and in decreasing the carbon emission that could reduce the threats to climate change.
Iowa was among the first states in the U.S. to establish net metering with its passage in 1984. The strong net metering laws are a reward and solar incentives for Iowa residents. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility, allowing customers to offset the cost of the energy they draw from the utility with credits they earn on their production. If your system produces more power than you need, the excess is sold to the grid, which you’ll see as a credit on your power bill. Now that is a sure way to save for the property owners of Iowa.
Interconnection standards refer to regulations that dictate how solar and other electrical generation systems can be linked to the power grid. This essentially involves "plugging in" the systems to the grid. Fortunately, Iowa Interconnection Standards are strong, making installation easier for utility companies and less expensive, making net metering more reliable.
Conveniently, Iowa grants substantial Performance-Based Incentives (PBIs), which are solar incentives based on the actual, metered power that your solar system generates. The state refers to these payments as Power Performance Payments, determined by the number of kilowatt-hours (kWh) or BTUs produced by your renewable energy system. The electricity produced is accredited as Solar Renewable Energy Credits (SRECs), which have a value that varies based on the principles of supply and demand. SRECs are an exceptional approach to help your solar system pay for itself.
In Iowa, the cost of a new solar system installation is exempted from property taxes for the first five years. This means that for those five years, you will not be charged any property taxes on the evaluated cost of the solar system. Nonetheless, you will still be obliged to pay property tax according to the assessed value of your property before installing the solar system. Now that's a solar incentive worth investing in!
When an Iowa property owner invests in solar panels, they become eligible for a sales tax exemption. This means that there will be no sales tax applied to the cost of the installed solar system, resulting in potential savings of up to 7% from the outset.
Iowa has existing Solar Easements and Rights Laws that aid the property owner in working with their neighbors to ensure accessibility to solar installation and guarantee sufficient sunlight coverage. The solar easement and rights laws prohibit the HOA from obstructing the property owner's solar system.
In addition to the appealing solar incentives, rebates, and exemptions available in Iowa, property owners may also be eligible for a considerable tax credit from the Federal government. The Solar Investment Tax Credit (ITC) equals 26% of the solar system's cost and can be subtracted from the property owner's Federal income tax. This credit is available to individuals who buy their solar system outright with either cash or a loan but not those who lease it. In the case of a leased system, the solar incentives go to the third-party owner. This is a compelling reason to buy rather than lease a solar system.
There are several factors why investing in a solar energy system will be an excellent choice for property owners in Hawkeye State. The upgraded and enhanced solar equipment, the reduced price of solar panels, and the conventional electricity rates have increased. Still, the most important is the amount a property owner can save when switching to solar!
Discuss your options with a reputable solar company to further understand Iowa solar incentives, rebates, and benefits you can reap!
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