As Iowa lawmakers rapidly approach the end of the 2026 legislative session, conversations around renewable energy remain abundant. As these discussions continue, the Common Sense Institute (CSI)’s latest energy report reveals that Iowa’s diverse energy grid continues to keep the state competitive and sustainable.
Due in part to Iowa’s history of clean energy leadership, beginning more than 30 years ago with U.S. Senator Chuck Grassley’s adoption of the Wind Energy Incentives Act, Iowa leads the nation in wind as a percent of total generation. This national ranking has allowed Iowa’s residential electricity prices to grow 37% slower than the U.S., improving Iowa’s relative affordability.
The state’s 13,697 MW of operating wind, solar, and battery storage have generated $1.5 billion in combined state and local tax revenue in the last decade, including $1.22 billion in property taxes. The study’s future outlook also found that without the projected $29 billion in new renewable energy investments in the queue, Iowa will miss out on at least 5,500 new jobs, $10.6 billion in economic impact, and $17.4 billion in business sales.
A fascinating aspect of the report is the statistical relationship between local wind energy development and lower property tax rates. On average, properties in school districts with no wind turbines pay 26% higher property taxes than those in districts with large-scale wind production. An average homeowner in a district with wind production pays approximately $194 less in property taxes than a comparable homeowner in a district with no wind production.
The report paints this picture by comparing Adams County (a county with active wind energy) and Ringgold County (a county without active wind energy). Through wind energy investments, Adams County was able to expand its tax base without placing the burden on the homeowner. The same cannot be said in Ringgold County, which has no wind energy developments. Residential property owners in Ringgold County contributed 72.9% to property tax growth from 2015-2023, while Adams County residents contributed only 22.1% to property tax growth.
CSI’s goal is simple: to examine the fiscal impacts of policies, initiatives, and proposed laws on Iowa’s economy. As state leaders navigate future challenges and opportunities related to clean energy, we remain committed to providing high-quality data, research, and analysis essential for citizens, businesses, and elected officials to make thoughtful policy decisions. As lawmakers carry on through the legislative session, the data found in CSI’s energy report may be wise to consult.
Thomas Young, Ph.D., is senior economist with Common Sense Institute.
