the
Sopris Carbondale’s
weekly, non-profit newspaper
Sun
Volume 3, Number 6 | March 24, 2011
Sun shi Local solar installers buffeted by changing rebates By Terray Sylvester Sopris Sun Staff Writer
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Cassidy Milligan, an eighth grader at Carbondale Community School, plays the Mad Hatter in the school’s Big Event, which concludes at 7 p.m. on March 24. The Big Event’s theme is “Literature Comes to Life” and features several songs, including a rendition of a Black Eyed Peas song renamed “I Gotta Keep Reading.” Photo by Lynn Burton
ocal solar electricity installers are trying to get their bearings in the wake of a set of shake-ups in a popular incentives program administered by Xcel Energy. On Feb. 17, the utility, which provides electricity to roughly 1.35 million Coloradoans, abruptly ended its Solar Rewards program while it negotiated new terms for the program with the state Public Utilities Commission. The move sparked outcry from Colorado’s solar electricity industry. Some firms reported they were forced to cut jobs while others complained Xcel had weakened consumer confidence in the industry and was exercising too much power, essentially adjusting rates without the approval of the utilities commission. Since then, Xcel has reached a settlement with solar electric industry groups, the utilities commission and other organizations establishing a new incentives structure for the program. Those new incentives went into effect this week, and local solar installers are still sizing up their effects. Katharine Rushton, who works for Sol Energy in Carbondale, said she and other Sol employees are recalculating the finances of deals that were pending before the Xcel incentive program was cancelled. “It had an impact because any Xcel customers that were in the sales cycle at that point got dropped,” she said. “Now we have to pick them back up and say,‘Can we still sell them this system?’” Under the new agreement, Xcel will reduce the size of upfront rebates available for small, customer-owned installations. In their place, the utility will offer incentives that will pay out incrementally after the system is up and running. When the Solar Rewards program was closed in February, the utility had been offering a $2.01 per watt upfront rebate for customer-owned systems smaller than 10 kilowatts. Now that rebate has been reduced to $1.75 per watt and paired with a $.04 per kilowatt-hour “performance based incentive” which will be paid over a 10-year period. The settlement completely eliminated upfront incentives for larger systems and replaced them with a tiered series of performance based incentives which will start at $.15 to $.16 per kilowatt-hour and pay out over a 20-year period. The new incentives structure will stay in effect for a year or until 60 megawatts have been installed through the program, whichever comes first. Xcel argued changes were necessary because the Solar Rewards program is running into debt and distributing money inefficiently. The program is funded through a voter-approved 2 percent surcharge on all Xcel customers’ utility bills. When the program went into effect in 2006 it SOLAR REBATES page 7
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