Xcel Energy Inc. asked state regulators Monday for permission to change its popular “Solar*Rewards” rebate program to make it easier for more solar power panels to be installed on homeowners’ roofs in Colorado.
Historically, homeowners had to pay thousands of dollars up front to install solar panels on their roofs. But Senate Bill 51, signed into law by Gov. Bill Ritter on April 22, allows third-party companies to own and install solar panels on residential roofs, while homeowners pay a monthly lease for the panels and use the renewable power in their homes.
Xcel on Monday proposed changing its Solar*Rewards rebate program to allow these third-party companies — which own the solar power systems, but not the rooftop — to access the rebate money. In the past, only the property owner could receive the rebate money.
Solar*Rewards is funded by all of Xcel’s customers through a 2 percent surcharge on their monthly bills.
All solar power systems get a $2 per watt rebate, per state law. The systems also are eligible for a payment for the “Renewable Energy Credit,” or REC, associated with the renewable power that’s generated.
For systems owned by third parties, and sized 1 to 100 kilowatts, REC payments are 11 cents per kilowatt hour. For those sized 10 to 100 kilowatts, the REC payment is 11.5 cents per kilowatt hour. For systems capable of producing between 100 and 500 kilowatts, the $2 rebate is capped at $200,000, and the REC payment is 12.5 cents.
Solar power systems owned by the homeowner will still get a $2 per watt rebate, plus a $1.50 per watt REC payment.
“These changes should help more consumers afford the installation of solar panels on their homes and businesses because the consumer will no longer be required to make large up-front payment to purchase the solar panels,” Xcel said in its announcement.
Xcel also said it was proposing a standard offer for solar power systems owned by the building owner that are capable of generating between 100 kilowatts and 500 kilowatts of power — rather than requiring system owners to compete against each other by responding to a request for proposal from the utility.
The standard offer will be $2 per watt, plus $1.25 per watt for the Renewable Energy Credits associated with the solar power, an Xcel spokesman said.
