The average residential electricity rate in Iowa (IA) is $0.1418 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking Iowa #22 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Iowa household consumes 924 kWh per month, resulting in a monthly electric bill of approximately $131 and annual electricity costs of about $1,572.
Iowa generates more than 60% of electricity from wind, the highest percentage of any US state.
This comprehensive guide covers Iowa electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Iowa residential electricity rates have increased 9% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Iowa ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1298 | $0.1322 | -2% |
| 2022 | $0.1340 | $0.1492 | -10% |
| 2024 | $0.1380 | $0.1680 | -18% |
| Apr 2026 | $0.1418 | $0.1805 | -21% |
Iowa has a regulated electricity market. The primary providers are: MidAmerican Energy, Alliant Energy, Municipal Utilities.
Iowa generates electricity from: Wind 62%, Natural gas 17%, Coal 11%, Nuclear 5%, Solar 3%, Other 2%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Iowa household uses 924 kWh/month.
MidAmerican Energy generates over 90% from wind and has not raised base rates in over a decade. If you are an Alliant Energy customer, rates are typically higher.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Iowa receives 4.4 peak sun hours/day. A 6 kW system produces ~7,902 kWh/year, saving ~$1,121/year. With the 30% federal ITC, payback is typically 6-9 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Iowa (IA) | $0.1418 | $131 | Regulated |
| Illinois (IL) | $0.1530 | $117 | Deregulated |
| Minnesota (MN) | $0.1488 | $123 | Regulated |
| Missouri (MO) | $0.1228 | $139 | Regulated |
| Nebraska (NE) | $0.1198 | $122 | Regulated |
| South Dakota (SD) | $0.1288 | $142 | Regulated |
| Wisconsin (WI) | $0.1598 | $120 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.