Dive Brief:

• The Iowa Supreme Court is set to decide whether third-party solar installers can operate in the state.
• Utilities contend that the third-party installers are illegally acting like a utility by selling electricity to a host customer under a solar power purchase agreement. The practice infringes on their franchise to serve a specific territory and is tantamount to “backdoor deregulation.”
• Currently, 22 states allow third-party solar financing.

Dive Insight:

A lower court judge ruled that third-party solar installers are not public utilities because they sell power to only one customer. Other states like Wisconsin are watching the case. A positive ruling by the court could trigger more rooftop solar development in Iowa and elsewhere.