Electricity Rates in Iowa (2026)
National average: 16.72¢/kWh · Source: EIA, January 2026
Iowa Is a Wind Energy Leader
Iowa generates more than 60% of its electricity from wind, the highest percentage of any state. This massive wind investment, combined with remaining coal and natural gas capacity, keeps rates at 14.23 cents/kWh, below the national average. MidAmerican Energy (Berkshire Hathaway subsidiary) serves western Iowa and has achieved 100% renewable generation on an annual basis. Alliant Energy serves eastern Iowa.
Wind Has Transformed Iowa's Energy Economics
Iowa's flat terrain and consistent winds make it ideal for wind farms. The state has invested so heavily in wind that it now exports wind-generated electricity to neighboring states. For consumers, this means stable, low-cost generation that is not subject to volatile fossil fuel prices. Iowa's electricity rates have risen more slowly than the national average over the past decade, largely due to wind's zero fuel cost.
Calculate Any Appliance Cost in Iowa
Most Expensive Appliances to Run in Iowa
Monthly costs at 14.23¢/kWh using typical wattage and hours:
| Appliance | Watts | Hrs/Day | Monthly Cost |
|---|---|---|---|
| Tankless Water Heater | 27000W | 1h | $115.26 |
| Electric Furnace | 10000W | 8h | $341.52 |
| Electric Car Charger (Level 2) | 7200W | 4h | $122.95 |
| Hot Tub | 6000W | 4h | $102.46 |
| Clothes Dryer | 5000W | 1h | $21.35 |
| Electric Water Heater | 4500W | 3h | $57.63 |
| Garage Workshop Heater | 4000W | 4h | $68.3 |
| Central Air Conditioner | 3500W | 8h | $119.53 |
| Electric Oven | 2500W | 1h | $10.67 |
| Dishwasher | 1800W | 1h | $7.68 |
| Hair Dryer | 1800W | 0.15h | $1.15 |
| Electric Pressure Washer | 1800W | 0.5h | $3.84 |
| Space Heater | 1500W | 8h | $51.23 |
| Electric Baseboard Heater | 1500W | 8h | $51.23 |
| Infrared Heater | 1500W | 6h | $38.42 |
Tips for Reducing Your Electricity Bill in Iowa
- MidAmerican Energy customers benefit from some of the most wind-powered electricity in the nation. Your electricity is already largely clean energy.
- Iowa winters are cold. A high-efficiency heat pump with electric backup handles Iowa's climate well and costs less to operate than an electric furnace.
- Check your utility for energy efficiency rebates. Both MidAmerican and Alliant offer programs for insulation, HVAC, and smart thermostats.
- Iowa does not have retail electricity choice. Your rate is set by your utility. Focus efficiency efforts on reducing consumption rather than shopping rates.
Frequently Asked Questions About Iowa Electricity
Iowa generates over 60% of its electricity from wind, which has zero fuel cost once turbines are built. This massive wind investment, largely driven by MidAmerican Energy and Alliant Energy, has kept generation costs low and stable. Iowa's rates have risen more slowly than the national average as a result.
The average Iowa household pays about $115-$140 per month. Iowa has cold winters and warm summers, creating year-round electricity demand. Many homes heat with natural gas, keeping winter electricity bills lower. Summer AC costs are moderate compared to southern states.
Compare Neighboring Rates
See how Iowa compares to other states in the Midwest region:
Illinois
16.37¢/kWh
Indiana
15.12¢/kWh
Kansas
14.98¢/kWh
Michigan
18.76¢/kWh
Minnesota
15.34¢/kWh
Missouri
13.12¢/kWh
Nebraska
11.98¢/kWh
North Dakota
11.87¢/kWh
Ohio
15.34¢/kWh
South Dakota
13.76¢/kWh
Wisconsin
16.98¢/kWh
Electricity rate data sourced from the U.S. Energy Information Administration (EIA), average residential retail price, last updated January 2026. Your actual rate depends on your utility, plan, and usage tier. See our full disclaimer.