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