Report: Colorado’s Solar Permit Processes Lag Behind Best Practices
Mar. 24, 2011 (Business Wire) — The Vote Solar Initiative (Vote Solar) and the Colorado Solar Energy Industries Association (COSEIA) today released a report and online interactive map rating solar permitting practices in 34 cities and counties across Colorado. Local solar permitting practices have a significant impact on the cost of solar energy systems for homes and businesses.
The new report indicates that, although practices vary widely by municipality or county, the average fee for Colorado solar permitting is nearly twice as high and seven times longer than national permitting best practices. The findings reinforce the need for Colorado to adopt the standardized, streamlined solar permitting practices contained in the Fair Permit Act of 2011 (HB10-1199) and to keep working to simplify permitting processes to drive down costs for consumers.
“With a clear policy commitment to renewables in place, Colorado has become one of the nation’s most promising solar markets. However, the state has an inefficient permitting landscape that directly undermines its renewable energy and economic development goals. Removing red tape and unnecessary fees from the solar permitting process is one simple and effective way that local governments can support Coloradan investment in clean energy,” said Gwen Rose, Deputy Director of Vote Solar and lead author of the report.
Added RJ Harrington, COSEIA’s Policy Director, “While there are certainly examples of leadership on the issue, many of Colorado’s cities and counties have permitting processes that add extraneous costs for solar customers and add unnecessary administrative work for solar installers and public agencies alike. Coloradans need the Fair Permit Act to help clear the way for solar adoption and economic development.”
When a Colorado energy customer invests in a solar electric or solar thermal system, that resident, business or other organization must first apply for and obtain a permit from the local government. According to best practices, this process should be transparent, standardized, expeditious, and reflect the municipality’s actual cost of review and issuance. As today’s report indicates, costs still vary widely by municipality due to different permitting plan review processes and other extraneous fees. This has resulted in piecemeal, local permitting practices that are often costly, complex, non-transparent and time-intensive.
The Fair Permit Act (HB 11-1199) is designed to reduce Colorado’s local solar permitting costs and clear the way for increased in-state investment in solar and related economic development. Specifically, the Colorado Fair Permit Act would:
• Extend existing $500 and $1,000 permit fee limitations to the plan review and permit issuance process for solar energy systems under 2-megawatts (MW) in size – these are currently set to expire on July 1, 2011
• Reduce unnecessary costs by limiting’ plan review and permit issuance fees to their actual costs for solar energy systems larger than 2 MW in size.
• Promote transparency by ensuring local governments clearly and individually identify all fees and taxes assessed on an invoice.
Using industry-standard best practices as a benchmark, Vote Solar and COSEIA assessed each city for the time and cost associated with solar permitting. The report found that permit fees for an average-sized residential solar system can cost a whopping $2,000 and take as many as 20 business days. The average cost of a solar permit in Colorado is $495 compared to a best practice fee of $250 or lower. Additionally the average time-to-issuance in Colorado is seven business days, significantly longer than the recommended over-the-counter practice. However, those local practices vary widely across the state. Breckenridge, Colorado Springs, Denver, Denver County, Grand Junction and Pueblo lead in solar-friendly permit practices. Meanwhile, Arapahoe County, Aurora, Commerce City, Douglas County, Erie and Longmont showed the most need for improvement.
Colorado is the second state in Vote Solar’s Project: Permit, a campaign to highlight and improve solar permitting practices in cities nationwide. To view the Project: Permit map, full Colorado report, and best practice guidelines, visit: http://votesolar.org/solar-map/
About the Vote Solar Initiative: Vote Solar is a non-profit grassroots organization working to fight climate change and foster economic opportunity by bringing solar energy into the mainstream. Since 2002 Vote Solar has engaged in state, local and federal advocacy campaigns to remove regulatory barriers and implement the key policies needed to bring solar to scale. www.votesolar.org
About the Colorado Solar Energy Industries Association: Established in 1989, COSEIA is the nonprofit association leading Colorado’s solar industry. Its mission is to expand the use of solar technologies across Colorado. COSEIA advances solar policy, removes market barriers, highlights emerging trends, and improves education and outreach. www.coseia.org
The Vote Solar Initiative
Rosalind Jackson, 415-817-5061
rosalind@votesolar.org
Friday, March 25, 2011
Agreement Reached on Solar*Rewards Program
Agreement Reached on Solar*Rewards Program
After long days of negotiations, Xcel Energy has finally agreed to restart its Solar*Rewards program as early as next week, pending PUC approval this Friday, March 18th. The negotiated agreement had to address three primary goals:
- Provide greater predictability and stability for solar businesses and customers
- Address the program cash flow challenges
- Reduce the program's nearly $100 million debt load
All three goals have been met and COSEIA, along with coalition partners, was able to negotiate the up-front incentive payment to $1.75/watt + $0.04/kWh performance-based incentive over 10 years for the small customer-owned category (Xcel was proposing $0.25/watt + $1/REC).
Third-party owned and mid-sized programs will move immediately to a performance-based incentive (PBI), paid over a 20 year period:
- Small third-party owned systems $0.16/kWh PBI
- Mid-sized systems $0.15/kWh PBI
As with before, all incentives will ratchet down over time based on capacity installed to help balance the program budget. See chart >
Xcel's proposed 10 MW of additional capacity was also negotiated up to 60 MW over the next year when Xcel's 2012 RES Compliance Plan is implemented. The negotiated restart of the program will be March 2011.
The shift from up-front incentives to performance-based incentives will not be easy one, but is necessary to address the cash flow crunch and avoid another shut down of the program. Shifting to PBI's paid out over a 10 year time frame for the customer-owned category is easier to finance and will give businesses time to establish financing arrangements.
The agreement also includes language that prohibits Xcel from taking unilateral action without PUC approval -- and of course we, as an industry, need to do our part to live within our program's means. Funding is not unlimited.
Xcel's actions have come at a significant cost and we're going to continue to do everything possible to promote a more stable marketplace during these challenging times.
After long days of negotiations, Xcel Energy has finally agreed to restart its Solar*Rewards program as early as next week, pending PUC approval this Friday, March 18th. The negotiated agreement had to address three primary goals:
- Provide greater predictability and stability for solar businesses and customers
- Address the program cash flow challenges
- Reduce the program's nearly $100 million debt load
All three goals have been met and COSEIA, along with coalition partners, was able to negotiate the up-front incentive payment to $1.75/watt + $0.04/kWh performance-based incentive over 10 years for the small customer-owned category (Xcel was proposing $0.25/watt + $1/REC).
Third-party owned and mid-sized programs will move immediately to a performance-based incentive (PBI), paid over a 20 year period:
- Small third-party owned systems $0.16/kWh PBI
- Mid-sized systems $0.15/kWh PBI
As with before, all incentives will ratchet down over time based on capacity installed to help balance the program budget. See chart >
Xcel's proposed 10 MW of additional capacity was also negotiated up to 60 MW over the next year when Xcel's 2012 RES Compliance Plan is implemented. The negotiated restart of the program will be March 2011.
The shift from up-front incentives to performance-based incentives will not be easy one, but is necessary to address the cash flow crunch and avoid another shut down of the program. Shifting to PBI's paid out over a 10 year time frame for the customer-owned category is easier to finance and will give businesses time to establish financing arrangements.
The agreement also includes language that prohibits Xcel from taking unilateral action without PUC approval -- and of course we, as an industry, need to do our part to live within our program's means. Funding is not unlimited.
Xcel's actions have come at a significant cost and we're going to continue to do everything possible to promote a more stable marketplace during these challenging times.
Sunday, March 13, 2011
PUC Says Progress Being Made on Solar Negotiations — But More Time Needed
PUC Says Progress Being Made on Solar Negotiations — But More Time Needed
Posted By admin On March 11, 2011 @ 4:31 pm In ARCHIVES, Feature Articles | No Comments
Negotiations between Colorado’s solar industry and Xcel Energy concerning restarting the utility’s Solar*Rewards rebate program are progressing, Xcel told state regulators late Thursday. However, additional time is needed to reach a final agreement, according to the utility’s filing at the Colorado Public Utilities Commission.
Several stakeholder groups have been involved in this week’s negotiations, led by the Colorado Solar Energy Industries Association which has warned that keeping the solar incentives at the reduced level will devastate the industry. Environmental and business groups are also at the table. Stay with Colorado Energy News for the latest on this huge issue.
By Ann Rascalli
If an agreement could, indeed, be reached within that time, the commissioners said they would consider approving a settlement. Without an agreement, the commissioners said they may take steps to resurrect Xcel’s Solar*Rewards rebate program in some form on a temporary basis until long-term decisions can be made.
The rebate issue broke out in mid-February when Colorado’s largest utility abrumptly cut solar rebate levels from $2.35 per watt to $2.01 per watt, and the following day stopped taking new applications for the Solar*Rewards program — at least until Xcel reopens it.
Since then, sales of PV systems in the state have virtually dried up, according to the Colorado Solar Energy Industries Association (CoSEIA), and the trade group warned that layoffs across the industry are coming.
Xcel has asked the PUC to cut the rebate levels to $1.25 per watt. CoSEIA wants the commission to keep rebates flowing — at some level — until the regulatory agency make a decision to approve or deny Xcel’s request.
“The PUC is moving very quickly on this issue, reinforcing the fact that they see the need to get this resolved before there’s any more economic damage to this industry,” said Neal Lurie, CoSEIA’s executive director. The Solar*Rewards program is funded by a 2 percent surcharge on the monthly bills of the utility’s Colorado customers, a small price to pay for clean energy say supporters.
“We’re happy to come to the table with the solar industry to try to reach an agreement,” said Michelle Aguayo, a spokeswoman for Xcel. “It’s always been our goal to get this program restarted in a form that is fair and equitable.”
--------------------------------------------------------------------------------
Article printed from Colorado Energy News: http://coloradoenergynews.com
Posted By admin On March 11, 2011 @ 4:31 pm In ARCHIVES, Feature Articles | No Comments
Negotiations between Colorado’s solar industry and Xcel Energy concerning restarting the utility’s Solar*Rewards rebate program are progressing, Xcel told state regulators late Thursday. However, additional time is needed to reach a final agreement, according to the utility’s filing at the Colorado Public Utilities Commission.
Several stakeholder groups have been involved in this week’s negotiations, led by the Colorado Solar Energy Industries Association which has warned that keeping the solar incentives at the reduced level will devastate the industry. Environmental and business groups are also at the table. Stay with Colorado Energy News for the latest on this huge issue.
By Ann Rascalli
If an agreement could, indeed, be reached within that time, the commissioners said they would consider approving a settlement. Without an agreement, the commissioners said they may take steps to resurrect Xcel’s Solar*Rewards rebate program in some form on a temporary basis until long-term decisions can be made.
The rebate issue broke out in mid-February when Colorado’s largest utility abrumptly cut solar rebate levels from $2.35 per watt to $2.01 per watt, and the following day stopped taking new applications for the Solar*Rewards program — at least until Xcel reopens it.
Since then, sales of PV systems in the state have virtually dried up, according to the Colorado Solar Energy Industries Association (CoSEIA), and the trade group warned that layoffs across the industry are coming.
Xcel has asked the PUC to cut the rebate levels to $1.25 per watt. CoSEIA wants the commission to keep rebates flowing — at some level — until the regulatory agency make a decision to approve or deny Xcel’s request.
“The PUC is moving very quickly on this issue, reinforcing the fact that they see the need to get this resolved before there’s any more economic damage to this industry,” said Neal Lurie, CoSEIA’s executive director. The Solar*Rewards program is funded by a 2 percent surcharge on the monthly bills of the utility’s Colorado customers, a small price to pay for clean energy say supporters.
“We’re happy to come to the table with the solar industry to try to reach an agreement,” said Michelle Aguayo, a spokeswoman for Xcel. “It’s always been our goal to get this program restarted in a form that is fair and equitable.”
--------------------------------------------------------------------------------
Article printed from Colorado Energy News: http://coloradoenergynews.com
Xcel works to be wise stewards of renewables
Xcel works to be wise stewards of renewables
Heidi Ihrke of High Noon Solar unfortunately paints a very inaccurate picture of Xcel Energy’s recent decision to modify its Solar*Rewards program in Colorado, in her March 1 letter to the editor. In fact, Xcel Energy remains committed to creating a clean energy future for Colorado, but at a reasonable cost.
Colorado voters approved a Renewable Energy Standard in November 2004 to kick start, but not fund into perpetuity, the on-site solar industry. Xcel Energy now collects 2 percent of customers’ bills each month to support that standard — which has gone to the on-site solar industry through Solar*Rewards, for $178 million through 2010.
At the time we stared Solar*Rewards in March 2006, the goal was to keep customer costs for a new system at about 50 percent. Recently, however, incentives have been paying upwards of 75 percent of the total cost. This provides for fewer megawatts of generation and is unfair to those who have already installed solar systems over the years.
Xcel Energy must be wise stewards of its customers’ investment in renewable energy. We’re not shutting down Solar*Rewards, we’re asking to reset incentives to take advantage of the drop in costs associated with on-site solar systems.
Xcel Energy has 78 megawatts of on-site solar on its system in Colorado; it has committed to installing up to another 59 megawatts this year. We have more than 2,200 installations still to be completed from just last year, or about a half dozen a day. To question our commitment to on-site solar is otherwise ridiculous. Simply stated, the on-site solar industry will have more than enough work in the next several years.
The question on-site solar installers should be asking themselves is: Why give larger incentives to fewer customers, when spreading those enticements out to a greater potential base of consumers can only serve to increase business for the industry?
FRED EGGLESTON
Local Government and Community Affairs Manager
Heidi Ihrke of High Noon Solar unfortunately paints a very inaccurate picture of Xcel Energy’s recent decision to modify its Solar*Rewards program in Colorado, in her March 1 letter to the editor. In fact, Xcel Energy remains committed to creating a clean energy future for Colorado, but at a reasonable cost.
Colorado voters approved a Renewable Energy Standard in November 2004 to kick start, but not fund into perpetuity, the on-site solar industry. Xcel Energy now collects 2 percent of customers’ bills each month to support that standard — which has gone to the on-site solar industry through Solar*Rewards, for $178 million through 2010.
At the time we stared Solar*Rewards in March 2006, the goal was to keep customer costs for a new system at about 50 percent. Recently, however, incentives have been paying upwards of 75 percent of the total cost. This provides for fewer megawatts of generation and is unfair to those who have already installed solar systems over the years.
Xcel Energy must be wise stewards of its customers’ investment in renewable energy. We’re not shutting down Solar*Rewards, we’re asking to reset incentives to take advantage of the drop in costs associated with on-site solar systems.
Xcel Energy has 78 megawatts of on-site solar on its system in Colorado; it has committed to installing up to another 59 megawatts this year. We have more than 2,200 installations still to be completed from just last year, or about a half dozen a day. To question our commitment to on-site solar is otherwise ridiculous. Simply stated, the on-site solar industry will have more than enough work in the next several years.
The question on-site solar installers should be asking themselves is: Why give larger incentives to fewer customers, when spreading those enticements out to a greater potential base of consumers can only serve to increase business for the industry?
FRED EGGLESTON
Local Government and Community Affairs Manager
Monday, March 7, 2011
Colorado PUC Tells Xcel, Solar Sector To Reach Agreement On Rebates
Colorado PUC Tells Xcel, Solar Sector To Reach Agreement On Rebates
SI Staff, Monday 07 March 2011 - 20:57:37
The Colorado Public Utilities Commission (PUC) has instructed Xcel Energy and representatives from the state's solar market to work out an agreement regarding rebates for installed solar systems. The decision follows Xcel's decision to make controversial modifications to its Solar*Rewards program.
Xcel and the state's solar sector were given seven days to reach a settlement, the Denver Business Journal reports. If no agreement is reached within that time frame, commissioners may issue a temporary decision until a longer-term agreement can be reached.
SOURCE: Denver Business Journal
SI Staff, Monday 07 March 2011 - 20:57:37
The Colorado Public Utilities Commission (PUC) has instructed Xcel Energy and representatives from the state's solar market to work out an agreement regarding rebates for installed solar systems. The decision follows Xcel's decision to make controversial modifications to its Solar*Rewards program.
Xcel and the state's solar sector were given seven days to reach a settlement, the Denver Business Journal reports. If no agreement is reached within that time frame, commissioners may issue a temporary decision until a longer-term agreement can be reached.
SOURCE: Denver Business Journal
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