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Iowa Statewide Rule

Iowa Net Metering Rules for Distributed Solar Generation

Some RestrictionsApplies statewide across Iowa (2026)

Key Facts

Capacity cap
1 MW AC nameplate maximum
Sizing limit
110% of annual usage
Enforcer
Iowa Utilities Commission
Outflow credit term
Retail rate, 20-year lock
Billing choices
Net billing or inflow-outflow
Last verified: July 31, 2026

Summary

Iowa Code section 476.49 requires rate-regulated electric utilities to offer net metering to customer-owned solar up to one megawatt AC that produces no more than 110 percent of annual usage, with the Iowa Utilities Commission approving each utility's billing tariff.

"Eligible distributed generation facility" means a distributed generation facility that elects a billing method pursuant to subsection 3, and to which all of the following apply: (1) The facility is located behind a customer's electricity meter. (2) The facility is interconnected to the electric utility distribution system. (3) The facility has an aggregate nameplate capacity less than or equal to one megawatt alternating current. (4) The facility has a capability to produce no more than one hundred ten percent of the customer's annual electricity usage.

Full Breakdown

The Iowa Utilities Commission enforces section 476.49. To qualify as an "eligible distributed generation facility," an on-site solar array must sit behind the customer's electricity meter, interconnect to the utility distribution system, stay at or below one megawatt of alternating-current nameplate capacity, and be sized to produce no more than 110 percent of the customer's annual electricity use. Interstate Power and Light and MidAmerican Energy each file either a net billing or an inflow-outflow tariff. Under inflow-outflow billing, exported energy is credited in dollars at the retail volumetric outflow rate, fixed for a twenty-year term regardless of ownership changes.

Violations & Penalties

A solar array over one megawatt, or sized above 110 percent of annual usage, is not an eligible facility and loses net-metering crediting. Utilities enforce the caps through Iowa Utilities Commission-approved interconnection tariffs rather than fines.

Frequently Asked Questions

Does Iowa require a statewide permit for solar panels?
No statewide panel permit exists; building permits are local. Statewide, Code 476.49 governs grid interconnection and net-metering eligibility through the Iowa Utilities Commission for systems up to one megawatt.
How large can a net-metered solar system be in Iowa?
Up to one megawatt AC nameplate capacity, sized to produce no more than 110 percent of the customer's annual electricity usage, under Iowa Code section 476.49.
How is exported solar energy credited?
Under an inflow-outflow tariff, exports are credited in dollars at the retail volumetric outflow rate, fixed for twenty years. Net billing instead credits kilowatt-hours to offset future bills.

Sources

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