The northern lights gave a good show last night, according to an Iceland tour guide colleague who searched for the northern lights last night. "They gave a good show for 20 minutes. I'd give it 6.5 on the scale of 10," he said.
For the past few months we've struggled to see good lights in Iceland, mostly due to the cloud cover, but also due to lack of activity. In December 2012 for example we had many snow days. Needless to say, when it snows it is cloudy which means they block the view.
The near future though looks very promising as far as northern light displays are concerned.
Reykjavik Bike Tours offers private northern lights tours in winter.