Blocking renewable energy in Iowa hurts growth and raises taxes

If the Iowa legislature chooses to intervene in the free market this session by limiting production of electricity from abundant domestic renewable sources, they will also need to explain why they chose higher property taxes for homeowners, fewer jobs, and slower economic growth for state.

The Iowa state capitol is buzzing right now with debate over renewable energy. Proposed legislation ranges from blinking light mitigation to outright bans on wind projects. As lawmakers weigh the political arguments, let them also consider the hard data.

A new report by the Common Sense Institute (CSI) tells the story of Iowa’s successful energy transition and provides receipts.

In 2000, coal imported from other states generated over 85% of Iowa’s electricity while renewables barely registered above zero. Today, nearly two-thirds of all electric energy generation in the state comes from renewables. Domestically sourced wind produced 59% of grid energy in 2025, making Iowa the nation’s leader in wind as a percent of total generation.

As Iowa has transitioned to renewables, its energy markets have become more competitive relative to other states. From 2010 to 2025 renewables increased from 18% of Iowa’s total generation to 62%, yet the state’s residential electricity prices grew 37% slower than the U.S, improving its relative affordability.

It’s worth noting that CSI is no crusader for renewable energy, per se. Research out of CSI’s Colorado chapter found that Colorado’s top-down, government mandated energy transition has driven up electricity prices and stymied its energy competitiveness. In Iowa, the data tells a different story, and affordability is only the start.

Through statistical analysis of statewide data and county-specific case studies, CSI found Iowa’s renewable energy renaissance has also helped keep property taxes in check.

The report found the owner of an average residential property living within the taxing jurisdiction of a school district with average wind production paid about $200 less in property taxes than a comparable property owner in a district with no wind turbines. Property owners in school districts with no wind turbines paid 26% higher property taxes than those in districts with large-scale wind production, on average.

The experiences of taxpayers in Adams County and Ringgold County are illustrative. These counties, both small and rural, are similar in almost every regard except one: Adams has embraced wind while Ringgold has not.

The two counties maintain nearly identical total levy rates — 10.93 in Adams versus 10.49 in Ringgold. In 2024, however, Adams County generated approximately $1,568 per resident in property tax revenue, compared to $947 per resident in Ringgold County, a gap of roughly 66%.

While Adams County collected more per resident, it’s not the average property owner who is footing the bill. Adams County expanded its tax base through wind investment; Ringgold relied on higher taxes for homeowners. As a result, residential properties in Ringgold County contributed 72.9% to the nominal change in property tax revenues per household from 2015 to 2023. In Adams, residents contributed only 22.1% to property tax growth.

Here’s another way to look at it. From 2015 to 2023, property taxes for the median homeowner rose about 40% faster in Ringgold than in Adams County. Tax revenue from wind production made the difference.

The analysis arrived at similar results when comparing O’Brien County to Lyon County. Homeowner property taxes grew 86% faster for Lyon – which has no wind – than the wind-producing O’Brien County.

Renewables also contribute to Iowa’s future growth. The study’s economic forecasting found that without the projected $29 billion in new renewable energy investments over the next decade, Iowa would miss out on at least 5,500 new jobs, $10.6 billion in economic growth, $17.4 billion in business sales, and $7.6 billion in personal income.

Those estimates are conservative. We expect the investment and returns may be even greater.

Regardless of the facts, however, political discourse inevitably extends beyond the kind of hard data CSI offers in its research. Lawmakers might want to limit wind production because their constituents dislike blinking red lights, for example. These considerations are ultimately political questions, but policymakers would be prudent to review the hard data also.

Ben Murrey is director of policy and research at Common Sense Institute Iowa, a non-partisan research organization dedicated to the protection and promotion of Iowa’s economy.