By Nick Summers, former staff member
The Iowa Solar Energy System Tax Credit is expiring at the end of the year, and the state has decided that it will not pay out the credits to applicants currently on the waiting list for residential projects. Applicants, many of whom have waited more than a year, invested in these systems with an expectation of receiving this tax credit, and the state is failing to uphold its side of a deal.
The credit incentivizes individuals’ and families’ purchase of a solar energy system by offsetting a significant portion of the costs. Capped at $5,000, the credit for residential systems paid an average of $3,498 to each applicant during the 2020 cycle, according to data from the Iowa Department of Revenue. Data from EnergySage shows an average cost of approximately $16,000 for a 5 kilowatt system. These savings make solar energy more accessible, and solar energy allows homeowners to save on their energy bills in the long run. This puts money into the pockets of Iowa families that can be invested back into their communities.
At the same time residential solar applications are being rejected, the state has confirmed applications for businesses will be paid out and continues to advise people to apply for the residential tax credit on their website in case the cutoff date, which is currently October 1, 2020, changes.
The residents of Iowa deserve the same treatment as its businesses, and with a budget surplus of more than $1 billion in 2021, it’s clear the state has the means and an obligation to make these applicants whole.
