Home solar energy projects on the rise in Iowa, but are they right for you?

A plethora of misconceptions remain surrounding residential solar panels

Jul. 11, 2023 6:00 am, Updated: Jul. 11, 2023 8:09 am

Rooftop solar panels are becoming a commonplace sighting across Iowa, and with new federal tax credits encouraging residential solar, they’re likely to increasingly pop up.

But while the popularity of residential solar has increased, misconceptions have, too.

The internet is full of false information targeting prospective buyers, said Larry Steffen, president of the Iowa Solar Energy Trade Association and vice president of sales and marketing at Eagle Point Solar, which serves Iowa, Illinois and Wisconsin. A common form of misdirection comes from advertising that casts solar as free, or that implies the government will pay homeowners who install solar panels, he said.

“If you educate yourself first, you won’t fall in that trap,” Steffen said.

To help keep homeowners from falling into such a trap, experts and consumers offer a primer on how to get started on the process of installing solar panels. It starts with doing your homework.

Steffen said he begins every initial inquiry from a homeowner by going over basic information, including the mechanics of how solar energy works. He also said he outlines the various economic incentives, and he emphasized the importance of being realistic with customers about what they will have to pay.

The process of installing panels typically starts with a consultation. In that meeting, True Solar Chief Executive Officer Travis Eichelberger said his company, based in Tiffin, discusses energy usage, logistics about design and payment plans. That beginning conversations will differ depending on the solar company, but there are many that offer consultations for free.

On average, residential solar panels cost about $20,000 for a complete system, but this can vastly vary based on the number of panels installed and the size of the home. Eichelberger said one of the most popular payment options is a loan, where the company attempts to create a plan that costs the customers less than their current utility bill, to see instant savings.

“At the end of the day, people choose solar because of the financial impact,” he said.

Steffen said that calculating cost for solar panel installation is entirely methodical, with a single equation giving the answers a prospective buyer would need. He said with a customer’s utility provider, amount of energy used and how much the energy costs, he can give an accurate report on how much the installation would cost.

“There's no reason to guess when that information is all on your bill,” Steffen said. “That's the very first thing that a competent solar vendor will gather.”

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If a potential client decides to go through with the installation process, the next steps include designing the panels and getting the requests and paperwork processed for building and electrical permits.

From the starting meeting to finishing touches, the process for installing residential solar panels generally takes about two months. Eichelberger said the exact timeline is mainly dependent on how long it takes for the utility and electrical permits to be signed and processed, as the actual construction that follows is finished in a few days.

Commitment to solar energy takes time, money and research. Here are a few quick things to look for when considering if residential solar panels are right for you:

• You have recently gotten your roof redone, or do not anticipate any repairs needed in the near future

• You want to have more direct control over your energy usage and be able to monitor your energy expenditures

• You are looking for a sustainable alternative to relying on the electrical grid’s rising costs of energy

• You own property with enough roof or land space to install panels large enough to serve your energy needs

Upon completion, the state fire marshal or local inspector is tasked with inspecting the installation before the system can be turned on. Steffen said that inspection is one of the most important parts of the process, and helps ensure the panels are safe.

“I absolutely, 100 percent, make no doubt about it, agree with (the inspection),” Steffen said. “We're dealing with energy. We're dealing with electricity.”

Meaghan MacDougall, a Cedar Rapids homeowner in the process of getting solar panels installed on her roof through Eagle Point Solar, said the simplicity of the process was the main incentivizing factor for her and her family. She said the company was able to present her with a comprehensive package explaining the logistics, making her end of the process uncomplicated.

“It makes it easy, and makes it doable,” MacDougall said. “They figured out (how) to present the homeowner with a complete package, tell them exactly what it will cost and be completely transparent.”

MacDougall said she and her family had talked about living entirely off the electrical grid in the past, but the cost always thwarted that. However, after learning about potential payment plans that cost less than her electricity bill, she was sold.

“It's a little daunting when they talk about the price, but as I said, at the least it's a wash and at the best it could lower our cost,” she said.

One of the most important questions MacDougall had about the process concerned a potential future sale of her house. She learned that transferring the loan to the buyer was fairly simple, and that she didn’t need to pay it off before moving.

“In the past, it was so complicated,” MacDougall said. “It was not for the layperson, you know, so this is much easier.”

As with any investment or large purchase, there are certain risks and rewards that come with solar panel installation.

Choosing an unreliable company can create pricey problems. In 2022, several Iowa solar companies were under investigation by the Iowa Attorney General’s Office after a wave of consumer complaints. Moxie Solar, a company with offices in 27 different states, had 26 complaints alone in Iowa.

Customers who filed lawsuits claimed Moxie Solar did not finish installing the agreed upon solar system. Ultimately, Moxie Solar closed at the end of 2022, but there did “not appear to be sufficient assets to accommodate unsecured creditors,” according to an email sent to the company’s creditors.

Steffen said the best way to avoid poor experiences with residential solar installation is to do adequate research beforehand. He said finding a specialist who is able to explain how energy process works, is transparent with payment plans and doesn’t have a history of customer complaints are elements to consider.

He also recommends looking at individual companies and their involvement with the community at the local level.

Along with installation mishaps, Iowans have had issues with receiving statewide tax incentives. After the $5 million allocated by state lawmakers for consumers installing solar arrays ran out, customers were put on a waiting list.

“A whole bunch of us got screwed in this deal,” Gary Gromman, a Cedar Rapids resident who was put on the waiting list after expecting $4,700 in tax credits, said in a 2022 interview.

Senate File 2367, which passed in 2022, allowed taxpayers who completed a residential solar installation during 2021 to file for the tax credits by June 30, 2022.

While residential systems are no longer eligible for the statewide tax credit programs, the Inflation Reduction Act set federal tax credits for residential solar for 30 percent of what the panels cost. This program will be in effect for the next decade.

The utility provider also makes a difference in the associated benefits with residential solar panels. Steffen said different providers offer different programs for residential solar, so it’s important to consult to determine if the system is beneficial.

Geoff Greenwood, the media relations manager at MidAmerican Energy, outlined how the process of residential solar works from the perspective of a utility. While MidAmerican Energy does not provide electrical services to Cedar Rapids, the company does for Iowa City and portions of Johnson and Iowa counties.

Greenwood explained MidAmerican Energy’s standard for home overproduction of solar energy, which distributes credits that can be used during a future billing period if the solar energy produced does not cover the total amount of energy used.

Some energy providers offer partial credit, while others do not offer any benefits for overproduction.

While the environmental impact of residential solar is not as great as large-scale grids, it is an important part of the bigger picture of renewable energy in Iowa.

Jordan Oster, energy outreach manager of the Iowa Environmental Council, said within the next few years, solar will become a more prominent form of energy in Iowa. In 2022, nearly 64 percent of Iowa’s energy came from wind, while solar reached 1 percent.

Despite the drastic difference, Oster said, there are several large-scale solar projects in the works to increase the amount of solar energy Iowa relies on.

“We have really strong technical solar potential in this state, which might even surprise people to compare it to some other places that you think are more sunny,” Oster said.

Oster said that to match the amount of energy produced by the now-decommissioned Duane Arnold Energy Center, a nuclear plant near Palo, 30,000 residential solar projects would have to be installed. Despite their limited reach, Oster said, individual installations are an important step toward the Iowa Environmental Council’s goal of transitioning to 100 percent renewable energy by 2050.

“These individual solar projects — they are very important,” Oster said. “We need both small scale and large scale renewables in order to build a modern carbon free energy system.”

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