Xcel’s cut in solar rebate hurts economy, energy
As a small business owner, employer and proud resident of the state of Colorado, I used to also be able to say I worked in the No. 2 state for solar jobs per capita in the United States. That was until Xcel Energy inexplicably decided to cut its entire solar compliance plan last Wednesday, reducing its rebate structure by more than 90 percent for the state of Colorado.
Not only did Xcel reduce the rebate, effective immediately, but now the solar industry is in a holding pattern until the PUC rules on the validity of this reduction, with no new applications for solar allowed with Xcel Energy.
When asked in an informative meeting held by Xcel the day after the announcement if they had considered loss of jobs when they made this decision, an Xcel representative blatantly said, “No, no we didn’t.”
Colorado voters have sent a clear message that they want to increase clean-energy use to help promote economic development in our state. Allowing Xcel to control its own solar program is a conflict of interest. As a monopoly utility, Xcel has a financial stake in disrupting and delaying solar growth in a state where voters have made a strong voice in support of renewable energy.
The PUC needs to stand strong in support of small businesses that are looking to lose 2,000 to 3,000 jobs by year’s end if resolution does not come in this matter.
Considering the prospect of $4 to $5 per gallon cost of gasoline as conflicts continue to flare in oil-rich areas, renewable energy should be the last thing on the chopping block.
HEIDI IHRKE
High Noon Solar
Grand Junction
Grand Junction Sentinel 28 February 2011
Monday, February 28, 2011
Xcel Energy blasted for burying bill to up small-scale renewable energy projects
State's largest utility accused of unhealthy obsession with fossil fuels, full-scale centralized energy facilities
Backers of a bill that would have prompted the study of a “feed-in-tariff” program in Colorado to connect renewable energy generators to the grid say the state’s major utilities quietly killed the legislation in committee last week because of their “continuing love affair with fossil fuels.”
HB 1228 (pdf), sponsored by Rep. Judy Solano, D-Brighton, was shot down in the House Agriculture, Livestock, & Natural Resources Committee, mostly because of the no votes of seven Republicans. Publicly owned Xcel Energy, the state’s largest utility, and the Colorado Rural Electric Association – representing most of state’s rural electric co-ops – opposed the bill.
“Xcel’s business model relies too heavily on the building of large central generation facilities that have major inherent liabilities for grid security and environmental impacts,” said consultant Becky English of Denver-based Rebecca English and Associates, who worked with Solano for the past eight months on the bill. “Distributed generation of clean renewable energy is the wave of the future; feed-in tariff is the market-balancing policy mechanism that gets us there.”
Feed-in-tariff (FIT) is being used in parts of Canada and Germany, where it allows individual property owners and businesses to generate power using small-scale solar, wind, biomass or hydro installations and sell that electricity back into the grid at a premium rate that’s absorbed by all ratepayers. FIT is meant to encourage investment in renewables and promote “grid parity” between renewables and fossil fuels.
But Xcel officials successfully argued they’re already on-track to accomplish greater parity through the state’s ambitious renewable energy standard (RES) of 30 percent by 2020 – the second highest in the nation behind only California.
“A feed-in tariff would be duplicative of the Renewable Energy Standard Adjustment (RESA), which is the current charge on customer bills devoted to paying the incremental cost of renewable resources,” said Xcel spokesman Mark Stutz. “A feed-in-tariff is a more expensive, less efficient method for accomplishing what we are already achieving under the current [RES].”
But English and other FIT backers say an RES is merely a goal while feed-in-tariff is an actual policy mechanism that’s proven in other parts of the world to help jurisdictions meet or exceed their renewable energy goals.
“FITs create a bigger market,” said Jim Burness, CEO of SolSource, a Colorado solar installation firm. “Under our recently-departed system, solar was only available to those who either had cash, or great credit. Since FIT payments come from the utility, it allows anyone with a good [renewable energy] resource to participate, thereby exploding the market.”
Burness was referring to Xcel’s highly controversial recent proposal to cut off all new applications to its Solar Rewards program and reduce current rebates from $2.35 a watt to $1.25 a watt. Solar industry advocates say the move could cost more than 2,000 Colorado jobs. The move prompted protests by clean energy advocates in Denver over the weekend.
English says FITs would be one way for Xcel to repair its battered image on the small-scale distributed energy front.
“Xcel’s corporate responsibility reputation is on the ropes due to the company’s continuing love affair with fossil fuels, its abuse of the solar industry, and its ongoing resistance to meaningful amounts of locally produced, clean distributed generation,” English said.
Utility scale wind and solar projects come with one major drawback. The best areas for generating renewable energy on such a large scale tend to be in remote rural areas far from the major cities that need the electricity. That has caused a transmission bottleneck and sparked legal battles over power-line location such as the Trinchera Ranch lawsuit in the San Luis Valley.
Finally, Xcel’s Stutz said “feed-in tariffs face legal issues in the United States that remain to be worked out. The National Renewable Energy Laboratory [NREL in Golden] says that feed-in tariffs will not work in the U.S. without changes to federal law or to existing Federal Energy Regulatory Commission [FERC] precedents.”
But English counters that an NREL official who’s studied FIT policy appeared at last week’s hearing and testified that feed-in-tariff could work under existing laws and FERC rulings.
Regardless, HB 1228 appears dead for now, leaving proponents to weigh their limited legislative options.
Backers of a bill that would have prompted the study of a “feed-in-tariff” program in Colorado to connect renewable energy generators to the grid say the state’s major utilities quietly killed the legislation in committee last week because of their “continuing love affair with fossil fuels.”
HB 1228 (pdf), sponsored by Rep. Judy Solano, D-Brighton, was shot down in the House Agriculture, Livestock, & Natural Resources Committee, mostly because of the no votes of seven Republicans. Publicly owned Xcel Energy, the state’s largest utility, and the Colorado Rural Electric Association – representing most of state’s rural electric co-ops – opposed the bill.
“Xcel’s business model relies too heavily on the building of large central generation facilities that have major inherent liabilities for grid security and environmental impacts,” said consultant Becky English of Denver-based Rebecca English and Associates, who worked with Solano for the past eight months on the bill. “Distributed generation of clean renewable energy is the wave of the future; feed-in tariff is the market-balancing policy mechanism that gets us there.”
Feed-in-tariff (FIT) is being used in parts of Canada and Germany, where it allows individual property owners and businesses to generate power using small-scale solar, wind, biomass or hydro installations and sell that electricity back into the grid at a premium rate that’s absorbed by all ratepayers. FIT is meant to encourage investment in renewables and promote “grid parity” between renewables and fossil fuels.
But Xcel officials successfully argued they’re already on-track to accomplish greater parity through the state’s ambitious renewable energy standard (RES) of 30 percent by 2020 – the second highest in the nation behind only California.
“A feed-in tariff would be duplicative of the Renewable Energy Standard Adjustment (RESA), which is the current charge on customer bills devoted to paying the incremental cost of renewable resources,” said Xcel spokesman Mark Stutz. “A feed-in-tariff is a more expensive, less efficient method for accomplishing what we are already achieving under the current [RES].”
But English and other FIT backers say an RES is merely a goal while feed-in-tariff is an actual policy mechanism that’s proven in other parts of the world to help jurisdictions meet or exceed their renewable energy goals.
“FITs create a bigger market,” said Jim Burness, CEO of SolSource, a Colorado solar installation firm. “Under our recently-departed system, solar was only available to those who either had cash, or great credit. Since FIT payments come from the utility, it allows anyone with a good [renewable energy] resource to participate, thereby exploding the market.”
Burness was referring to Xcel’s highly controversial recent proposal to cut off all new applications to its Solar Rewards program and reduce current rebates from $2.35 a watt to $1.25 a watt. Solar industry advocates say the move could cost more than 2,000 Colorado jobs. The move prompted protests by clean energy advocates in Denver over the weekend.
English says FITs would be one way for Xcel to repair its battered image on the small-scale distributed energy front.
“Xcel’s corporate responsibility reputation is on the ropes due to the company’s continuing love affair with fossil fuels, its abuse of the solar industry, and its ongoing resistance to meaningful amounts of locally produced, clean distributed generation,” English said.
Utility scale wind and solar projects come with one major drawback. The best areas for generating renewable energy on such a large scale tend to be in remote rural areas far from the major cities that need the electricity. That has caused a transmission bottleneck and sparked legal battles over power-line location such as the Trinchera Ranch lawsuit in the San Luis Valley.
Finally, Xcel’s Stutz said “feed-in tariffs face legal issues in the United States that remain to be worked out. The National Renewable Energy Laboratory [NREL in Golden] says that feed-in tariffs will not work in the U.S. without changes to federal law or to existing Federal Energy Regulatory Commission [FERC] precedents.”
But English counters that an NREL official who’s studied FIT policy appeared at last week’s hearing and testified that feed-in-tariff could work under existing laws and FERC rulings.
Regardless, HB 1228 appears dead for now, leaving proponents to weigh their limited legislative options.
Friday, February 25, 2011
Take Action to Prevent Xcel Energy from Suspending Solar Rewards
TAKE ACTION TODAY: Can you write a letter to the editor of your local newspaper urging Xcel to restart the Solar*Rewards program and to better educate the public about this important issue?
Here are a few key messages to highlight:
- Colorado voters have sent a clear message that they want to increase clean energy use to help promote economic development. The program had been working well. Spurred by the passage of Amendment 37, there are now 5,300 solar jobs and more than 400 solar businesses in Colorado. Colorado is now the #2 state in the U.S. for solar jobs per capita.
- Xcel Energy is using its monopoly to disrupt the market for clean energy and choke off competition. Xcel is now the 2nd major utility to suspend its solar program. Black Hills Energy in Pueblo suspended its solar program in October, which led to a 90% decrease in solar sales and significant job losses while customers wait for incentives to return. The Colorado economy can't afford a devastating similar crash statewide. An estimated 2,000-3,000 Colorado jobs will be lost by the end of the year unless there is a rapid restart to the state's successful solar programs.
- Every industry needs a stable marketplace to compete. Xcel's Solar*Rewards program was on schedule, slowly ratcheting down incentives as solar costs decreased. Incentives were reduced nearly 50% during the past two years as solar electric costs decreased by 40-50% during the same period. The program has worked. The key was that program changes were predictable, incremental and transparent so consumers and businesses could react.
- Xcel Energy administering its own solar program is a conflict of interest. As a monopoly utility, Xcel has a financial stake in disrupting and delaying solar growth and destabilizing the clean energy marketplace. A monopoly shouldn't be allowed to pull the rug out from under Colorado's small businesses and while putting thousands of jobs at risk.
- Colorado needs an independent 3rd party administrator to oversee its solar program. Xcel Energy and Black Hills Energy have demonstrated that they are either incapable or unwilling to ensure a stable marketplace for healthy competition. That's why other states have implemented an independent solar program administrator to avoid these conflicts of interest. Colorado should too.
- The Public Utilities Commission should deny utility requests to gut clean energy programs. The PUC should seek to restart Xcel's and Black Hills' solar programs quickly, before any more economic damage is done, and begin a fair and transparent stakeholder process to ensure stable marketplace.
- The public is invited to attend the Rally for Clean Energy Jobs this Friday, February 25 at 12pm, at the Colorado State Capitol building, west steps to show their support for increasing clean energy in Colorado.
Feel free to personalize your letter to the editor, but be sure to highlight some of these key points.
Thank you for your continued involvement. We can't do this alone. And thanks for sending a letter to the editor of your local newspaper today.
Best regards,
Neal Lurie
Executive Director, COSEIA
Here are a few key messages to highlight:
- Colorado voters have sent a clear message that they want to increase clean energy use to help promote economic development. The program had been working well. Spurred by the passage of Amendment 37, there are now 5,300 solar jobs and more than 400 solar businesses in Colorado. Colorado is now the #2 state in the U.S. for solar jobs per capita.
- Xcel Energy is using its monopoly to disrupt the market for clean energy and choke off competition. Xcel is now the 2nd major utility to suspend its solar program. Black Hills Energy in Pueblo suspended its solar program in October, which led to a 90% decrease in solar sales and significant job losses while customers wait for incentives to return. The Colorado economy can't afford a devastating similar crash statewide. An estimated 2,000-3,000 Colorado jobs will be lost by the end of the year unless there is a rapid restart to the state's successful solar programs.
- Every industry needs a stable marketplace to compete. Xcel's Solar*Rewards program was on schedule, slowly ratcheting down incentives as solar costs decreased. Incentives were reduced nearly 50% during the past two years as solar electric costs decreased by 40-50% during the same period. The program has worked. The key was that program changes were predictable, incremental and transparent so consumers and businesses could react.
- Xcel Energy administering its own solar program is a conflict of interest. As a monopoly utility, Xcel has a financial stake in disrupting and delaying solar growth and destabilizing the clean energy marketplace. A monopoly shouldn't be allowed to pull the rug out from under Colorado's small businesses and while putting thousands of jobs at risk.
- Colorado needs an independent 3rd party administrator to oversee its solar program. Xcel Energy and Black Hills Energy have demonstrated that they are either incapable or unwilling to ensure a stable marketplace for healthy competition. That's why other states have implemented an independent solar program administrator to avoid these conflicts of interest. Colorado should too.
- The Public Utilities Commission should deny utility requests to gut clean energy programs. The PUC should seek to restart Xcel's and Black Hills' solar programs quickly, before any more economic damage is done, and begin a fair and transparent stakeholder process to ensure stable marketplace.
- The public is invited to attend the Rally for Clean Energy Jobs this Friday, February 25 at 12pm, at the Colorado State Capitol building, west steps to show their support for increasing clean energy in Colorado.
Feel free to personalize your letter to the editor, but be sure to highlight some of these key points.
Thank you for your continued involvement. We can't do this alone. And thanks for sending a letter to the editor of your local newspaper today.
Best regards,
Neal Lurie
Executive Director, COSEIA
Friday, February 18, 2011
Xcel Energy Cuts Rebates
Date: February 16, 2011
Topic: Solar*Rewards change filing
Today, Xcel Energy filed an application with the Colorado Public Utilities Commission (CPUC) requesting
a reduction in the on-site solar rebate from $2.00 to $0.25 up-front payment, for systems up to 100
kW. Effective immediately, we have lowered our purchase price for Renewable Energy Credits (RECs).
Between the February 16 and Commission decision on lowered rebate
Until the PUC makes a decision on our filing, we will accept up to 3 MW of Solar*Rewards applications
with REC pricing according to the chart below. Applications will be considered for approval until the
capacity limit is reached.
REC Payment Amounts
Systems Customer-Owned Third Party Developer
Small 1¢/watt DC upfront .1¢/kwh produced (1/10 of 1¢)
Medium
(Tiers 1 & 2)
$1/MWh produced $1/MWh produced
Application kW is counted toward the capacity at the time of submission.
The $2.00/watt Rebate is still applicable.
Why We Filed For This Change
Solar*Rewards was established to encourage customer adoption of on-site solar and to make sure the
technology is included in Colorado’s energy mix. The program has been successful and we want to
continue to offering it to our customers.
Since the program began in March 2006 and through the end of 2010, you’ve installed 76 megawatts
of solar energy under the program. And we’ve distributed $178 million in rebates to customers.
The solar industry continues to grow, and the technology is becoming more affordable. As the cost of
on-site solar drops, we need to be able to adjust the incentives accordingly.
Customers pay for Solar*Rewards through a two percent charge on their electric bills. We are
responsible for ensuring these funds are used wisely
Next Steps
We will hold a meeting for installers
Thursday, February 17
1:30 – 3:00 pm
Xcel Energy offices at 1800 Larimer, Room 03G01 (Denver, CO)
Call-in number: 612-330-7955, ID 4715
We will file a Renewable Energy Standard Compliance Plan with the CPUC this spring that
outlines the future of the program for 2012 and beyond. The plan includes Solar Gardens
projects as well.
Please refer to xcelenergy.com/solar for more information and regular updates Or contact us at
solarprogram@xcelenergy.com.
Topic: Solar*Rewards change filing
Today, Xcel Energy filed an application with the Colorado Public Utilities Commission (CPUC) requesting
a reduction in the on-site solar rebate from $2.00 to $0.25 up-front payment, for systems up to 100
kW. Effective immediately, we have lowered our purchase price for Renewable Energy Credits (RECs).
Between the February 16 and Commission decision on lowered rebate
Until the PUC makes a decision on our filing, we will accept up to 3 MW of Solar*Rewards applications
with REC pricing according to the chart below. Applications will be considered for approval until the
capacity limit is reached.
REC Payment Amounts
Systems Customer-Owned Third Party Developer
Small 1¢/watt DC upfront .1¢/kwh produced (1/10 of 1¢)
Medium
(Tiers 1 & 2)
$1/MWh produced $1/MWh produced
Application kW is counted toward the capacity at the time of submission.
The $2.00/watt Rebate is still applicable.
Why We Filed For This Change
Solar*Rewards was established to encourage customer adoption of on-site solar and to make sure the
technology is included in Colorado’s energy mix. The program has been successful and we want to
continue to offering it to our customers.
Since the program began in March 2006 and through the end of 2010, you’ve installed 76 megawatts
of solar energy under the program. And we’ve distributed $178 million in rebates to customers.
The solar industry continues to grow, and the technology is becoming more affordable. As the cost of
on-site solar drops, we need to be able to adjust the incentives accordingly.
Customers pay for Solar*Rewards through a two percent charge on their electric bills. We are
responsible for ensuring these funds are used wisely
Next Steps
We will hold a meeting for installers
Thursday, February 17
1:30 – 3:00 pm
Xcel Energy offices at 1800 Larimer, Room 03G01 (Denver, CO)
Call-in number: 612-330-7955, ID 4715
We will file a Renewable Energy Standard Compliance Plan with the CPUC this spring that
outlines the future of the program for 2012 and beyond. The plan includes Solar Gardens
projects as well.
Please refer to xcelenergy.com/solar for more information and regular updates Or contact us at
solarprogram@xcelenergy.com.
Tuesday, February 8, 2011
Ecotech Institute unveils new green campus
Ecotech Institute unveils new green campus
Amanda H. Miller
FEB 04, 2011
A new trade school dedicated to training the next generation of green-technology workers opened a solar panel-clad campus in Aurora, Colo., last week.
The 62,000-square-foot facility is a state-of-the art building fitted with wind turbines, solar photovoltaic panels and solar trees in the parking lot.
The solar and wind features on the building will provide about 10 percent of its energy needs, said Glenn Wilson, Ecotech Institute academic dean.
The solar trees in the parking lot are one of the school’s most prominent and visible green feature, which advertises the greater purpose of the school.
“People will be able to charge electric cars into those solar trees,” Wilson said. “They’ll be able to charge them there.”
The Ecotech Institute was founded by the Education Corporation of America, which owns and operates trade and community colleges around the country.
“They saw a need for an educational institution that would prepare students for green technology careers,” Wilson said.
He said the Education Corporation decided to locate its new school in Aurora because Colorado is rich with universities and research institutions like the National Renewable Energy Laboratory, doing good work and research in green technology. There are also a lot of companies entering into commercial enterprises involving green technology, Wilson said.
“Colorado is also a great environment for renewables research—lots of sun and wind,” Wilson said.
The school opened two years ago and has been functioning in a temporary location until the start of this semester last week, Wilson said.
When the new building opened last week, about 200 new and returning students filtered through the doors. The building is large, and there will be a lot of room for expansion over the next few years as the school grows and becomes more well-known throughout the country.
It is the first school of its kind, devoted completely to green technology education, Wilson said.
The building will prove to be a tool for students in their classes, Wilson said.
“They’ll be able see a solar installation and monitor its energy production so they can better understand how the technology works,” Wilson said.
Amanda H. Miller
FEB 04, 2011
A new trade school dedicated to training the next generation of green-technology workers opened a solar panel-clad campus in Aurora, Colo., last week.
The 62,000-square-foot facility is a state-of-the art building fitted with wind turbines, solar photovoltaic panels and solar trees in the parking lot.
The solar and wind features on the building will provide about 10 percent of its energy needs, said Glenn Wilson, Ecotech Institute academic dean.
The solar trees in the parking lot are one of the school’s most prominent and visible green feature, which advertises the greater purpose of the school.
“People will be able to charge electric cars into those solar trees,” Wilson said. “They’ll be able to charge them there.”
The Ecotech Institute was founded by the Education Corporation of America, which owns and operates trade and community colleges around the country.
“They saw a need for an educational institution that would prepare students for green technology careers,” Wilson said.
He said the Education Corporation decided to locate its new school in Aurora because Colorado is rich with universities and research institutions like the National Renewable Energy Laboratory, doing good work and research in green technology. There are also a lot of companies entering into commercial enterprises involving green technology, Wilson said.
“Colorado is also a great environment for renewables research—lots of sun and wind,” Wilson said.
The school opened two years ago and has been functioning in a temporary location until the start of this semester last week, Wilson said.
When the new building opened last week, about 200 new and returning students filtered through the doors. The building is large, and there will be a lot of room for expansion over the next few years as the school grows and becomes more well-known throughout the country.
It is the first school of its kind, devoted completely to green technology education, Wilson said.
The building will prove to be a tool for students in their classes, Wilson said.
“They’ll be able see a solar installation and monitor its energy production so they can better understand how the technology works,” Wilson said.
Thursday, February 3, 2011
New solar power plant up and running at CSU
New solar power plant up and running at CSU
Feb 1, 2011 By The Associated Press
Fort Collins, Colo. (AP) — Colorado State University says a 5.3-megawatt solar plant on its Foothills Campus in Fort Collins has started producing electricity.
CSU says the plant started producing power in December. Fotowatio Renewable Ventures owns and operates it, and CSU is buying power produced by it at a fixed rate for 20 years. Xcel Energy Inc. is buying renewable energy credits from the plant, which CSU says helped offset construction costs.
The plant will provide one-third of electricity needs on the Foothills Campus, about three miles west of the main campus.
CSU says that according to the most recent statistics compiled by the Association for the Advancement of Sustainability in Higher Education, the project is one of the largest at a U.S. university.
Copyright © 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. ..
Feb 1, 2011 By The Associated Press
Fort Collins, Colo. (AP) — Colorado State University says a 5.3-megawatt solar plant on its Foothills Campus in Fort Collins has started producing electricity.
CSU says the plant started producing power in December. Fotowatio Renewable Ventures owns and operates it, and CSU is buying power produced by it at a fixed rate for 20 years. Xcel Energy Inc. is buying renewable energy credits from the plant, which CSU says helped offset construction costs.
The plant will provide one-third of electricity needs on the Foothills Campus, about three miles west of the main campus.
CSU says that according to the most recent statistics compiled by the Association for the Advancement of Sustainability in Higher Education, the project is one of the largest at a U.S. university.
Copyright © 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. ..
Subscribe to:
Posts (Atom)
