By Andi Anderson
Iowa, known for leading the nation in wind energy production, is now facing the possibility of higher electricity prices. Congress is considering repealing the technology-neutral electricity tax credit, a move that could hurt Iowa’s green energy progress.
Wind power currently supplies more than half of Iowa’s electricity. According to the Iowa Environmental Council, this shift to wind helps the state save at least $500 million each year. But without tax incentives, the future of wind energy and its financial benefits are at risk.
Dan O'Brien, a senior analyst at Energy Innovation, explained that the impact goes beyond households. He pointed out that wind turbines are often placed on farmland, benefiting farmers directly. “In the Midwest, over 90% of wind turbines are sited on crop land,” said O'Brien. “They bring in money for farmers, even during dry seasons or when harvests are low.”
Reports suggest that removing the tax credits could lead to a 3% increase in household electricity bills by next year. Over the next decade, that could mean an average rise of at least $460 per household.
Meanwhile, energy costs are already on the rise. The National Economic Research Associates predict a 7% increase this year, due to climate change, fossil fuel dependence, and growing transmission costs.
O'Brien warned that cutting support for clean energy would make matters worse. “Without solar, wind, and batteries backed by incentives, electricity prices and business costs will keep going up,” he said.
Across the U.S., energy prices climbed 22% between 2018 and 2023. With electricity bills already high, any policy change affecting wind energy could raise costs even more and reduce income for farmers.
The ongoing debate could shape Iowa’s energy future and affect everyone from city families to rural farms.
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Categories: Iowa, Energy