Here's the catch 22 with Northern lights viewing in Iceland... It's a total gamble. Obviously you have to view during thr winter time (Nov-Mar) because being closer to thr Arctic circle, the nights are longer, during summer there practically is no night so even if solar flares occur, you won't see squat because of the midnight sun effect.
But Iceland being a little Island in the north atlantic means wildly unpredictable and competing microclimate weather systems, which often means bad viewing conditions because of overcast and precipitation which can switch on/off on a dime.
So you have to have overall generally good conditions, be far away from the major city to avoid light pollution, be in the right place with a patch of clear sky that is facing in the right direction in the sky at the right time to catch the lights, and sometimes even then it may not be bright enough to really see with the naked eye unless youve been standing in the dark for a while. Sometimes they may only be visible with a camera + tripod and long exposures. I had poot viewing conditions the week I spent there, the last 3 weeks prior to my arrival they had record dry weather, clear skies and perfect viewing conditions, go figure.