Colorado regulators tighten rooftop solar-energy incentives

The Colorado Public Utilities Commission on Thursday approved a new solar rewards program for Xcel Energy that does away with upfront cash incentives for solar panels that amount to thousands of dollars to homeowners. The commissioners also capped the number of solar installations eligible for subsidies in part to address a $32 million deficit in the fund that finances the program. The decision was one of "balancing competing views" from consumer and renewable-energy advocates, said PUC chairman Josh Epel. The plan will provide total financial subsidies for up to 36 megawatts a year of commercial, residential and "solar gardens" for 2012 and 2013. Under the present plan — in which 38 megawatts were added in 2011 — the upfront subsidy is $1 a watt. It also pays 9 cents for each kilowatt that a solar installation generates. The average solar installation for a Colorado home is about 5.5 kilowatts, and the upfront incentive is on average worth about $5,500. The plan approved Thursday provides a subsidy on a sliding scale for kilowatts generated, without the upfront payment. The first residential units approved this year will get a 15-cent per kilowatt payment. By the end of 2013, the payment for new systems will be down to 11 cents. "We don't know if residential customers are going to want to pay for systems without upfront subsidies," said Ron Davis, a commission staff adviser. The plan also dedicates six of the megawatts to "solar garden" community-based installations that several homes share. That leaves 30 megawatts to homes and business, industry executives say. Xcel had offered the commission three options: • A minimum plan: 16 megawatts. • A medium plan: 36 megawatts. • A high plan: 60 megawatts. The utility's preferred plan was for 36 megawatts, and a commission administrative law judge agreed. Since 2006, Xcel has provided $256 million in rebates and credits for about 10,500 commercial and residential solar arrays. The money has come from a 2 percent renewable-energy charge on customer bills — but that fund is now $32 million in the red. The state Office of Consumer Counsel and the PUC staff argued that the 16-megawatt plan be adopted to curb the costs of the program. "Less than 1 percent of Xcel customers benefited, but we have to think about all the ratepayers," said Bill Levis, director of the consumer counsel office. Xcel said in its filings that the deficit will be erased by 2017. The commission is expected to issue its written order the first week in June, at which time the plan will go into effect. Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com Read more: Colorado regulators tighten rooftop solar-energy incentives - The Denver Post http://www.denverpost.com/breakingnews/ci_20706345/colorado-regulators-tighten-rooftop-solar-energy-incentives#ixzz1wGykFqdC Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse