Colorado
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 11/09/2009
| Incentive Type: |
Utility Rebate Program |
| State: |
Colorado |
| Eligible Renewable/Other Technologies: |
Photovoltaics
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| Applicable Sectors: |
Commercial,
Residential,
Nonprofit,
Installer/Contractor,
Systems Integrator
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| Incentive Amount: | Rebates:
Systems 0.5 kW - 500.0 kW DC: $2/W DC with a maximum rebate of $200,000
Systems 500.1 kW DC and larger: Determined through RFP process with a maximum rebate of $200,000
REC Purchases as of 10/27/09:
Customer-owned systems 0.5 kW - 10.0 kW DC: $1.50/W DC
Third-party-owned systems 0.5 kW - 10.0 kW DC: $0.11/kWh of actual production (paid monthly)
Systems 10.1 kW - 100.0 kW DC: $0.115/kWh of actual production (paid monthly)
Systems 100.1 kW - 500.0 kW DC: $0.115/kWh of actual production (paid monthly)
Systems 500.1 kW DC and larger: Determined through RFP process
REC payments will step down over time as ceretain MW levels are reached for each system classification. |
| Maximum Incentive: | $200,000 for the rebate portion of the incentive |
| Eligible System Size: | Minimum size of 0.5 kW
Limited to 120% of average annual consumption of the site |
| Equipment Requirements: | Eligible modules and inverters are listed on the California Energy Commission web site;
Solar systems must carry a five-year warranty from both the manufacturer and the installer, including parts and labor. |
| Ownership of Renewable Energy Credits: | Xcel Energy |
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Web Site: |
http://www.xcelenergy.com/
Colorado/Residential/RenewableEnergy/Solar_Rewards/Pages/home.aspx
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| Date Effective: | 3/1/2006 |
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Summary:
SB 51 of 2009 made various changes to Colorado’s net metering rules and Colorado’s renewable energy standard law as it pertains to customer-sited solar systems. These amendments necessitated changes in Xcel’s Solar*Rewards program effective September 1, 2009. In late October 2009, Xcel announced further changes to the program. Xcel established a system for reducing their REC payments over time as distinct megawatt (MW) goals are reached. The following summary describes the program in its current state as of October 27, 2009. Historical information about the program is presented at the bottom of this summary.
Effective September 1, 2009, third party developers who own and maintain a PV system on an Xcel customer’s property can receive incentive payments directly from Xcel.
Xcel Energy's Solar*Rewards Program provides two separate incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities. Customers will receive an upfront rebate payment, plus a separate payment for the renewable-energy credits (RECs) produced by their system. For systems between 0.5 kW and 500.0 kW DC, Xcel will provide a rebate at the time of installation of $2 per Watt (W). Systems larger than 500 kW can participate through a request for proposals (RFP) process.
All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct MW levels are reached for each system classification. The follow REC payments are in effect as of November 9, 2009. Check the website above for current REC pricing.- Customer owned systems 0.5 kW – 10.0 kW DC: $1.50/W (upfront payment)
- Third party owned systems 0.5 kW – 10 kW DC: $0.11 per kilowatt-hour (kWh) of actual production (paid monthly)
- Customer owned or third party owned systems 10.1 kW – 100.0 kW DC: $0.115/kWh of actual production (paid monthly)
- Customer owned or third party owned systems 100.1 kW – 500.0 kW: $0.115/kWh of actual production (paid monthly)
- Customer owned or third party owned systems > 500.1 kW: determined through competitive bid process.
For customer owned systems up to 10.0 kW the REC payment may be adjusted, either up or down, based on the calculation of a system's expected electricity output, compared with an optimally oriented, fixed (i.e., non-tracking) system at the customer’s location, but only if the calculated system output differs from the optimally oriented system output by more than 10%. Battery storage is not covered by the rebate.
To qualify for a solar rebate, participants must submit an application and receive approval from Xcel Energy prior to installing the system. A list of PV modules and inverters eligible for the rebate is available on the California Energy Commission’s.website. All PV systems must carry a five-year warranty from both the manufacturer and the installer, including parts and labor.
Net metering is available for Xcel Energy's customers, with net excess generation (NEG) at the end of a monthly billing period credited to the next month’s bill. If a customer has NEG at the end of a calendar year, the customer will be paid for the credit at a rate comparable to the utility's avoided-cost rate, or the customer may make a one-time election to have the NEG carried forward from month to month indefinitely.
Background
Xcel’s Solar*Rewards Program was initiated to comply with Colorado's Amendment 37, approved by voters in 2004. The renewable energy standard (RES) component of Amendment 37 has since been amended and now requires Colorado’s investor-owned utilities, including Xcel Energy, to generate or purchase enough renewable energy to supply 20% of their retail electricity sales in Colorado by 2020. Of the electricity generated each year from eligible renewables, at least 4% must come from solar-electric technologies. At least one-half of the solar requirement must be generated by systems located at customers' facilities. Under the initiative, utilities are required to offer customers a minimum rebate of $2.00/watt of installed PV capacity plus a separate payment for the RECs produced by the system. Xcel originally offered an upfront REC payment of $2.50/W for systems up to 10kW. Citing the lifting of the cap on the federal ITC for residential systems, Xcel reduced their REC payment to $1.50/W for systems installed after October 24, 2008. Various changes to Colorado’s RES law, effective September 1, 2009, resulted in changes to the Solar*Rewards program including the ability for third party developers to receive incentive payments directly, a new standard offer for medium sized projects, and the removal of a system size cap.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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