As a mindless consumer I'm with the majority of the people here: I drink what I feel like. And when it's hot and I'm thirsty, that will most probably be iced tea (industrial stuff here unfortunately).
From a business point of view, if you do anything with your price, I'd raise it. Maybe things are different in the US, but here home made drinks are rare and (as everywhere) are of much higher quality than the industrial stuff. So if you take the effort of preparing home made, good quality (I assume yours realy is very good) then send out the signal that it realy is made from quality REAL ingredients rather than artificial flavourings. And that signal is price. Trust me, your patrons will enjoy their home made iced tea even more at 1.69$ than they do at .99.
The only way in which the .99 thing would work is if you're in a typical tourist trap environment and you're sitting shoulder to shoulder with a few dozen other diners and bars. In that case a big "Home made iced tea at .99$" might be the thing to drag mom, dad and the kids in your place rather than your neighbour's. Especially if you'd serve it also in pitchers for example so the entire family can enjoy cheap drinks. In any other setting it's rather pointless.