What drives electric bills in Iowa
Residential electricity in Iowa averaged 14.2¢ per kWh in January–July 2026, up 5.0% from 13.5¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 16.0¢. The typical home here used 832 kWh a month in 2024, close to the U.S. average.
- High usage. Hot summers, cold winters and a lot of rural homes with electric heat or well pumps push usage above the national average.
- Different rates by utility. Prices vary a lot between MidAmerican, Alliant and the municipal and co-op utilities. Alliant customers generally pay more than MidAmerican customers.
- Winter heat. Homes with electric furnaces, baseboard heat or older heat pumps see their biggest bills in January and February.
Who supplies your power
MidAmerican Energy and Alliant Energy (Interstate Power and Light) serve most Iowans. More than 130 municipal utilities and dozens of rural electric cooperatives serve the rest.
Ways to pay less in Iowa
- Many Iowa utilities offer lower winter rates for homes with electric heat. Ask whether you qualify.
- If you have a well pump or sump pump that seems to run constantly, have it checked. A leak or a stuck pressure switch can add a lot to your bill.
For example, a 1,500 W space heater running 8 hours a day costs about $52 a month at Iowa prices. Check what your appliances cost to run in Iowa.
Help paying your bill in Iowa
- Low Income Home Energy Assistance Program (LIHEAP): Iowa’s program, through community action agencies, also protects eligible households from disconnection from November 1 to April 1.
- Weatherization: LIHEAP-eligible households can get free insulation and air sealing through Iowa’s Weatherization Assistance Program.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Iowa?
A typical 7 kW rooftop system in Iowa produces roughly 8,750 kWh a year, about 88% of what an average home here uses. At the state’s average price of 14.2¢, that power is worth about $1,243 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Iowa compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Iowa | 14.2¢ | 832 | $118 |
| Nebraska | 12.9¢ | 956 | $123 |
| Missouri | 14.0¢ | 1,001 | $140 |
| South Dakota | 14.5¢ | 994 | $144 |
| Minnesota | 16.3¢ | 712 | $116 |
| Wisconsin | 19.0¢ | 645 | $123 |
| Illinois | 19.2¢ | 693 | $133 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.