Utility holding company, Alliant Energy Corporation’s LNT Iowa-based unit – Interstate Power and Light Company – is looking for solar prospects in the state. The subsidiary has issued Request for Proposals (“RFP”) for new solar projects which would enhance the company’s solar capacity by 50%.

The RFP includes construction of solar projects with a generation capacity ranging from 1–10 megawatts (“MW”) within the company’s service area in Iowa. Once these projects come online, they will have the ability to power an average of 200–2,000 homes.

Madison, WI-based Alliant Energy has already connected 1,650 individual solar or wind systems to the grid. Over the past six years or so, the utility has installed about 500 MW of wind assets at a cost of $1 billion.

Alliant Energy is consistently investing in renewable assets. In addition, the company is installing baghouse, scrubber and dry scrubber at its various generation stations to conform to environmental directives. The utility has also planned to shut down or convert inefficient coal units to natural gas stations.

A similar RFP was filed by Duke Energy Corporation DUK in Aug 2015, for utility-scale solar capacity in South Carolina. The proposal was aimed at ensuring the supply of solar power with a capacity between 1 MW and 10 MW in the company’s service areas by the end of 2016.

Utilities are increasingly investing in solar in order to take advantage of the 30% investment tax credit which is expected to come down to 10% beginning 2017.

Zacks Rank

Alliant Energy is currently well placed with a Zacks Rank #2 (Buy). Other utility stocks that warrant a look are Edison International EIX and Talen Energy Corporation TLN. Both stocks currently sport a Zacks Rank #1 (Strong Buy).

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