Homeowner has solar power carry over credits zeroed out, Alliant Energy says it’s the law

CEDAR RAPIDS, Iowa (KCRG) — Fourteen — that’s how many solar panels sit on Gary Warner’s home in Cedar Rapids. That’s one more than Alliant Energy, and a private solar installer said he needed to power his home.

Now, the panels are producing more energy than he uses, but he’s not benefiting from the surplus.

Warner installed those panels on his roof roughly two years ago, but now he’s frustrated.

Every year in April, his credit balance for sending Alliant Energy power is reset to zero, with no compensation.

On a sunny day like Tuesday, the solar panels on Gary Warner’s house produce a lot of energy. His panels create enough energy in a month to cover his entire bill, and then some.

“We actually send more electricity to Alliant than Alliant sends to us, that’s why we have a credit,” Warner said.

He’s talking about a carry-over credit, where Alliant Energy recognizes more energy was created than used and adds an amount of money to the homeowner’s account. That credit can be used to pay for the next bill.

”I had $335 credit,” Warner said.

When his bill came in April, that credit was dropped back to zero.

“They just have a line saying forfeit, and your credit’s gone,” Warner said.

Since installing his panels, Warner’s lost roughly $700 worth of credit. It’s money he says can’t be used in other areas of his bill, like his meter rental.

“Why can that credit not be used to help pay for that 13-15 dollar bill. It varies because it varies depending on how much electricity goes through the meter, but I don’t understand why the credit can’t pay for that,” Warner said.

He doesn’t understand the point of taking the money away.

”Why the credit just disappears once a year and you start over. If I’ve given them more electricity than they have given me it seems like they owe me money,” Warner said.

TV9 reached out to Alliant to ask those questions and was told this is simply the law.

Alliant said in part, “…any unused credits must be forfeited at the end of an annual period to be consistent with the law.” It went on to say, “The best way to avoid forfeiting credits is to work with a qualified installer to ensure the system is appropriately sized for the customer’s actual energy needs.”

Warner just wants an explanation behind the why.

“It would be interesting if I could find out what the rationale behind that is, and like I said, maybe the rationale makes sense and then I wouldn’t be concerned,” Warner said.

Full Q&A with Alliant Energy:

Rebekah Vaughan: Is there a way to opt out of forfeiting it? Or what are different ways to use the credit to avoid forfeiting it?

Alliant: Under Iowa law (Iowa Administrative Code 199—476.49), the inflow-outflow billing tariff is designed to credit customers for the solar energy they generate and use on-site. The law requires that systems be sized to meet only the customer’s on-site electricity needs, which limits how much energy can be credited. That said, solar production can sometimes exceed usage – even over a full month. In those cases, customers earn credits that carry over to future bills. However, any unused credits must be forfeited at the end of an annual period to be consistent with the law. To help manage this, customers can choose either January or April as their annual reset date. The best way to avoid forfeiting credits is to work with a qualified installer to ensure the system is appropriately sized for the customer’s actual energy needs.

Rebekah Vaughan: Does the customer get any money back from forfeiting the credit?

Alliant: No, customers do not receive payment for unused solar credits that are forfeited at the end of the annual period. This is in accordance with Iowa Administrative Code 199—476.49(7), which requires any remaining outflow purchase credits be forfeited and used to reduce overall purchased power costs.

Rebekah Vaughan: Where does that money or extra electricity generated go?

Alliant: Excess electricity flows back to the grid and helps power other homes and businesses in real time. Customers receive bill credits for this energy throughout the year. However, any unused credits at the end of the annual period are forfeited, with the forfeited credits helping reduce overall purchased power costs for all customers.

Rebekah Vaughan: Why can’t that money be used for the meter rental cost?

Alliant: Credits can only be applied to volumetric charges, those based on how much electricity a customer uses, such as energy and rider charges. Fixed charges, like the Basic Service Charge for metering and infrastructure, are not based on usage and therefore cannot be offset with solar credits.

Copyright 2025 KCRG. All rights reserved.