Black Hills Energy pulling plug on solar program in southern Colorado

Black Hills Energy, which serves Pueblo and 52 towns and cities in southern Colorado, is set to pull the plug on its solar panel incentive program. The Rapid City, S.D.-based utility is proposing cutting its current program by about 75 percent, according to a renewable energy plan filled with the Colorado Public Utilities Commission. Low natural gas prices make adding renewable energy sources uneconomical, said Christopher Burke, vice president for Colorado utility operations. "This is a pretty good punch in the gut," said JD Johnson, owner of SolStore, a Pueblo-base solar installer. "We are just looking for some consistency." The move by Black Hills comes after Xcel Energy, the largest electric utility in the state with 1.4 million customers, trimmed its Solar Rewards program. As investor-owned utilities, Xcel and Black Hills are required by state law to generate 30 percent of their electricity from renewable sources by 2020. Xcel says that it will meet the standard in 2018. Black Hills gets 12.5 percent of its power from renewable sources and will file another renewable energy plan in 2015. "We will get there," said Burke. In 2010, Black Hills, which serves 94,000 Colorado customers, suspended its solar rebate program, sparking criticism from some PUC commissioners and negotiations between the utility and the solar industry. In a settlement, Black Hills agreed to provide incentives for almost 1 megawatt of projects in 2011 with a comparable number of installations this year, said Neal Lurie, executive director of the Colorado Solar Energy Industries Association, a trade group. The Black Hills program offers a direct rebate up to $3,000 for the cost of the system and a 9.5-cent credit for every kilowatt-hour put onto the grid by a small residential installation, for a nine-year period. Under Black Hills' proposal, the utility would add no new capacity but take 238 kilowatts of remaining capacity from the settlement for use in 2013 and 2014. The solar energy industry association's Lurie said he hopes continuing talks with the utility will lead to a larger program. "The low natural gas price has changed the business model," said Black Hill's Burke. "It has made it a lot less cost effective to incorporate renewables in our portfolio, especially solar which is the most expensive." Black Hills recently spent $487 million on two new gas-fired power plants in Pueblo and received PUC approval for a $10.5 million rate increase. That boosted the average monthly residential bill by $17.50, a nearly 5 percent increase. "With the price of electricity going up people are looking for alternatives," said SolStore's Johnson. "Black Hills is taking one of those away." Read more: Black Hills Energy pulling plug on solar program in southern Colorado - The Denver Post http://www.denverpost.com/breakingnews/ci_21385680/black-hills-energy-pulling-plug-solar-program-southern#ixzz24QxKQMU3 Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

Xcel flooded with solar garden applications

Xcel flooded with solar garden applications Earlier this week, Xcel Energy began accepting applications for the first time from developers who want to build small solar gardens in Colorado. Just 30 minutes later, the company closed down the process, having already received proposals to build about three times the capacity allowed. "It really does show that there was a niche out there that wasn't being previously addressed," said Xcel spokesman Mark Stutz. The idea behind solar gardens, called the Solar Rewards Community program by Xcel, is to allow people who aren't able to install solar panels on their properties -- such as renters and condo owners, who don't own their roofs, and homeowners with shady roofs -- to harness solar power (and the available rebates). "Solar Rewards Community makes solar energy available to a new, broad group of customers and we are pleased with the interest shown today," David Eves, president and CEO of Xcel's Colorado operation, said Wednesday when the utility began accepting applications. And while the interest in developing solar gardens appears to be strong, until recently, solar gardens weren't legal in Colorado. That changed in 2010 when state Rep. Claire Levy, D-Boulder, introduced a bill into the General Assembly outlining rules for the community solar arrays. The bill was signed into law that June by Gov. Bill Ritter. "When I proposed the legislation in 2010, I didn't know how feasible it was going to be and how much demand there was," Levy said. "The fact that they sold out in 30 minutes -- it says that there is still a lot of potential for small-scale solar development." The legislation divides solar gardens into two types: those smaller than 500 kilowatts, and those with a capacity between 500 kilowatts and 2 megawatts in size. The total capacity of each type of solar garden is also limited for the first three years of the program. The idea, Levy said, was to make sure that the program would work and to make sure that small local solar providers -- which focus mostly on rooftop installations -- were not negatively affected by a big surge in solar garden development. After three years, future limits will be set by the Public Utilities Commission, said Levy, who noted that the PUC will be able to take into account the amount of demand at that time. The limit set for the capacity of all smaller solar gardens -- the ones for which applications were accepted Wednesday -- for this round is 4.5 megawatts. At least one of the small gardens will be built in the Boulder area, according to the Clean Energy Collective, a Carbondale-based company that won approval this week from Xcel to build six solar gardens in the utility's service area, including one just east of Boulder. The 500-kilowatt solar garden will be built on property of the Golden Hoof Sustainable Demonstration Farm, and the solar panels themselves will be artistically grouped into "solar trees" on the north side of the property, according to the collective. The garden will be incorporated into the program's educational program. "It worked out that it was a really nice approach to creating an ideal location for having a community solar array and being part of a sustainable environment and an educational environment," said Thomas Sweeney, Clean Energy Collective's chief operating officer. The permitting process has not yet begun for the solar garden, but Sweeney said rules created by Xcel say that the project must be finished within a year. A full list of which project applications were accepted -- which may include other Boulder-area gardens -- will be released next week, according to Xcel.

Two Grand Junction energy companies merge

Two Grand Junction energy companies merge Altasta Solar Center & EnergyWise Companies will now operate together as one entity August, 9 2012 Caitlin Row crow@gjfreepress.com To create Grand Junction's newest one-stop energy shop, Atlasta Solar Center and EnergyWise Companies recently joined forces in everything but name. Now, EnergyWise's energy efficiency and conservation methods, along with Atlasta's solar-production installations, will be offered under one umbrella. According to EnergyWise founder and president Darin Carei, operations for EnergyWise and Atlasta merged July 1. This came on the heels of another big event, the retirement of Atlasta's owner and founder Virgil Boggess. “Right now, (both companies) will maintain their own identities, but we're merging into one location,” Carei said. “We're looking actively for a brand-new building.” As one of the first solar companies in Grand Junction, Atlasta has been installing solar technologies in the Grand Valley since 1979. From its inception, it sold and installed solar thermal technologies. Then it added “off-grid solar” and “a steady increase of solar with grid tie photovoltaic systems being installed valleywide in commercial, residential, and utility applications,” its website said. EnergyWise formed locally in 2008 to perform energy efficiency services, such as audits, building improvements and ENERGY STAR® certifications. It works with new and existing buildings, and it provides insulation installations, air-sealing, crawl-space retrofits, specialized retrofit services and general contracting. “It always makes sense to look at conservation, and the demand side of energy before looking at production,” Altasta solar sales representative Lou Villaire said. “If you reduce consumption first, then you may pay less for a solar installation. ... EnergyWise can come in before the solar is done, and do an energy audit. It's a relatively simple procedure. You may find good opportunities for savings, and — through low- to no-cost measures — reduce your energy bill by 20 percent. That will in turn reduce your solar installation cost, as you may not need as big of a solar set-up.” Even though Atlasta and EnergyWise joined forces to provide full-service energy offerings, customers may pick and choose from its wide variety of services to fit their needs. “If someone comes to us with a relatively new home, we'd just do solar,” Villaire said. “You don't have to do a solar installation if you just need an energy audit.” For more information about EnergyWise, visit www.energywisecompanies.com. For more information about Atlasta, visit www.atlastasolar.com.

Solar gardens nourished by Xcel incentives set to bloom in Colorado

Solar gardens are poised to sprout across Colorado — from Fort Collins to Leadville to the Paradox Valley near Utah — and some are already taking root. Looking to take advantage of a new incentive program from Xcel Energy, the state's largest electric-utility company, community groups and developers are crafting garden proposals. Solar gardens enable people who don't have a sunny roof or the money to buy a full array to buy or lease a piece of an array — in some cases for as little as $1,000. "This is a way to make solar available to all our customers," said Robin Kittel, Xcel's director of regulatory administration. "We are also looking for creative low-income projects." More than a dozen states — including Massachusetts, Washington, Illinois, Arizona, Nevada and California — are promoting solar gardens, according to the Interstate Renewable Energy Council. But Colorado could set the pace for the nation. The state has a solar-garden law, developers specializing in the collective solar installations and innovative private financing. "There are a lot of elements that just come together in Colorado," said Jesse Morris, an analyst with the Rocky Mountain Institute, an energy consultant in Snowmass. In Leadville, 20 residents and a private school are proposing a small, 50-kilowatt solar garden near the base of Mount Elbert. Just off Interstate 70, at the Garfield County Airport near Rifle, the country's largest community solar garden — 858 kilowatts — is up and running. About 200 people have bought a piece of the garden's 3,575 panels. The complex was built by the Carbondale-based Clean Energy Collective, a private developer specializing in solar gardens. "This is a big, untapped market," said Paul Spencer, the collective's president and founder. "We've worked to develop a business model without subsidies, but the Xcel program will open up solar gardens to 55 percent of the state." The collective is hoping to use the Xcel incentive program to build a solar garden in Denver's Lowry neighborhood. But even without the Xcel incentive, the company is building a 1.2-megawatt garden in the Paradox Valley desert, in southwest Colorado, in cooperation with the San Miguel Power Association, and it has a contract with Colorado Springs Utilities for a garden. There are already two other solar-garden projects in Colorado Springs by SunShare LLC, a 1-year-old startup. One 575-kilowatt garden went into operation in December at Venetucci Farm, and the other 573-kilowatt project is under construction at a church. "I had seen solar gardens in Europe and wondered why we didn't have them here," said David Amster-Olszewski, 25, president of SunShare. "The answer was that there were regulatory and financial roadblocks, but those are being removed." Xcel will be offering incentives for 9 megawatts of solar gardens in 2012 and another 9 megawatts in 2013, divided among small systems (10 to 50 kilowatts), medium-size systems (50 kilowatts to 500 kilowatts) and large systems of 500 kilowatts to 2 megawatts. Operators will get paid on a sliding scale — 14 cents to 10 cents — for each kilowatt-hour the garden produces. Residents will get a credit on their bill of about 6.8 cents a kilowatt-hour. "There is a lot of interest," said Amster-Olszewski. "It looks like it is going to be somewhat of a raffle." There are, however, obstacles: The cost of the systems runs into the millions of dollars, and finding a piece of land large enough for a garden may be difficult in urban areas. "There is a lot of organizing and politics," said Jeff Evans, sales manager for solar installer Simple Solar. Simple Solar tried and failed to put together a garden project in Grand Junction. Still, groups and individuals across the state — from Aurora to Fairplay to Saguache County — are trying to organize solar gardens, said Joy Hughes, founder of the Westminster-based Solar Gardens Institute, a nonprofit advocacy group. "There is huge interest because this is a way that people who would never have access to solar power can participate," Hughes said. "It is a way to bring communities together." Only about a quarter of the nation's rooftops are big enough and sunny enough for rooftop solar, according to the National Renewable Energy Laboratory in Golden. And with the price of a rooftop array ranging from $12,000 to $180,000 in Colorado, not everyone can afford one. While sharing panels might sound simple, the details are complex. Issues include whether individuals can sell their shares and how they will be credited for the energy produced. The Colorado Community Solar Garden Act — sponsored by Claire Levy, a Boulder Democrat, and passed in 2010 — sought to address those issues. The act directed the Public Utilities Commission to include gardens in the state's renewable- energy plans. Xcel's new incentive program for 18 megawatts of gardens in the next two years came out of that effort. In Leadville, the High County Conservation Center organized the local group and was able to get a site on county land 7 miles from town. Solar Panel Hosting, a for-profit spin-off from the Solar Gardens Institute, is set to develop and manage the garden. If the project is selected, Xcel will pay the developer and its financial backers, under a 20-year contract, 14 cents for every kilowatt-hour the garden generates — as small gardens get the highest incentive. Residents will buy into the garden at $2,000 to $3,000 a kilowatt — depending on financing and construction costs, according to Lynne Greene, energy director at the conservation center. "I'm buying 1 kilowatt, which covers about a third of my electricity use," said Greene, who is a Leadville resident. Homeowners will get a credit on their bill for their share of the garden equal to Xcel's base residential rate, minus transmission and renewable-energy charges. The payback on the investment is estimated to be about 10 to 15 years, Greene said. Finding financing for solar gardens is a new challenge, since it is a new and expensive product. The energy collective has worked with private investors, who gain some federal tax credits as well as a return, and also JPMorgan Chase, Spencer said. But financing for homeowners looking to buy into a solar garden remains a challenge. Sooper Credit Union, which initially served King Soopers employees and now operates in four states, has jumped into that market as the first solar-garden lender in the country. Working with the energy collective, the credit union is offering three- to 10-year loans with interest rates of 2.25 percent to 6.5 percent to consumers and businesses. "At the outset, you are paying a little more than the benefit, but at some point you catch up," said Don Kester, the credit union's chief executive. "Our main business is car loans, but this looks to be a promising market — and it's green," Kester said. Read more: Solar gardens nourished by Xcel incentives set to bloom in Colorado - The Denver Post http://www.denverpost.com/business/ci_21073777/solar-gardnes-nourished-by-xcel-incentives-set-bloom#ixzz22vemLZYY Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse