DENVER – Xcel Energy, the Governor’s Energy Office, Solar Alliance and the Colorado Solar Energy Industries Association (COSEIA) announced today an agreement that will restart the Solar*Rewards program and balances the interests of the solar industry, utility customers, the environment and the state’s economy.
Colorado voters passed Amendment 37 in 2004 to set a renewable energy standard for the largest utilities in the state. In subsequent legislation, a maximum 2 percent charge on electricity bills was also established to fund renewable projects, including Solar*Rewards.
The new agreement sets the program investment at $97.3 million for the 2011 plan, as originally proposed, and allows the company to acquire up to an additional 60 megawatts of solar energy. The settlement also continues to define when incentive levels will be reduced and at what point programs and tiers are closed to new applications.
“All parties reached an agreement that continues the success of Solar*Rewards. The agreement maintains the economic benefits of this aspect of the renewable energy standard, while protecting the environment and consumers,” said TJ Deora, director, Governor’s Energy Office.
“This agreement gives the solar industry the predictability we need,” said Carrie Hitt, president of the Solar Alliance. “We continue to strongly support a program structure of transparent incentive steps, which decline as solar capacity targets are hit. We also favor the switch to performance-based incentives for all installation levels as a way to reduce annual costs of the program.”
Neal Lurie, executive director of the Colorado Solar Energy Industries Association, added that “we’re pleased to see the solar program come back online to provide additional choices for consumers and so we can get back to the business of promoting solar energy and economic development in Colorado.”
Performance-based incentives, rather than upfront payment, puts Solar*Rewards on a path to financial sustainability so it can continue to help Coloradans install solar on their homes or businesses. Payments made over time better match when the solar energy is produced and benefits realized.
“A significant aspect of this agreement is that when Solar*Rewards is fully subscribed under this settlement—which could be next year given our state’s enthusiasm for solar energy—Xcel Energy will be in compliance with the 2018-2019 renewable energy standard for customer-sited solar,” said Jay Herrmann, Xcel Energy’s vice president of marketing.
The agreement was filed this afternoon with the Colorado Public Utilities Commission (CPUC). It will be effective upon commission approval and will continue until the commission approves a new plan, expected in mid-2012. Details of the settlement are available at www.xcelenergy.com/.
