July 11, 2014
FOR IMMEDIATE RELEASE
July 11, 2014
Iowa Supreme Court Opens Door for Solar Energy Choice
Ruling Affords Iowans Same Options Offered Families in Other States
DES MOINES –Iowans can offer their roof space to solar energy developers and buy the power created from those panels according to an Iowa Supreme Court decision released Friday.
“Today’s decision is a win for Iowans because it gives everyone the option to go solar affordably,” said Brad Klein, senior attorney with the Environmental Law & Policy Center (ELPC), who argued the case last spring on behalf of a large coalition of solar energy and environmental advocates. “Across the country, families, businesses and communities have gone solar with third-party ownership. Now, that opportunity can come to Iowa, too.”
In 2011, Alliant Energy argued that an agreement between Dubuque-based Eagle Point Solar and the City of Dubuque violated the utility’s monopoly territory. Under the agreement, Eagle Point agreed to install and maintain solar panels on the Dubuque City Council building, the City would then pay Eagle Point for the energy created by those panels. The utility argued that the agreement, known as a third-party power purchase agreement (PPA) amounted to the creation of a utility. This claim was rejected by the court.
In his majority opinion, Justice Appel wrote that “Third-party PPAs like the one proposed by Eagle Point actually further one of the goals of regulated electric companies, namely, the use of energy efficient and renewable energy sources.”
“We are pleased that the court agreed with us that agreements that take place behind the meter cannot be considered utility deals,” said Josh Mandelbaum, staff attorney with ELPC’s Des Moines office. “The fact that the court agrees with our analysis of the law means good things for the future of solar in Iowa.”
A recent report by the Iowa Environmental Council, Real Potential, Ready Today: Solar Energy in Iowa highlighted the significant potential for solar energy in Iowa. Mandelbaum said that Iowa is already starting to see the rapid growth of solar, which most recently was highlighted by the tripling of funding available for state tax credits for solar energy installation.
“This ruling opens up solar to a larger audience by bringing down up-front costs. This decision will make solar more affordable for Iowa families and businesses, and it also helps cities, churches and other non-profits to get the whole value of clean energy,” Mandelbaum added.
Friday’s ruling upholds an April 2013 ruling by the Iowa District Court.