End of state tax credit expected to impact Iowa clean energy growth

The race is on to finish about a dozen large renewable energy projects in Iowa after state lawmakers did not act on renewing a key tax credit. The state’s production tax credit of 1.5 cents per kilowatt hour will not be available for any projects that go into operation after Dec. 31, 2017. The Iowa Legislature did not vote on renewing the credit during the session that ended in late April. The impact will be twofold: projects now in process won’t get the credit if they aren’t operating by the end of the year, and there will be no state tax credit as of Jan. 1 for larger solar projects.

Midwest states seek to cut time, costs for solar connections

States across the Midwest are updating their interconnection rules for solar customers, a process likely to cut the time and money required to establish a connection to the grid. In addition, the new standards will equip utilities to efficiently process solar applications as their numbers likely escalate in coming years, according to an attorney who worked on revisions recently approved by the Iowa Utilities Board. Updated and improved interconnection standards are “a critical part of moving distributed generation ahead. And having clear, fair and efficient interconnection rules is critical to enabling a healthy distributed generation market,” said Sky Stanfield, an attorney who was involved in negotiating the new standards. The costs of interconnection are among the “soft costs” of solar installation that have not fallen along with the hardware costs of solar panels in recent years.