It has been nearly a month since my last submission and it has been nothing but a roller coaster ride since. Xcel Energy is now in full swing with its recently announced reduction of the Solar Rewards Rebate program. What was once a guarantee of rebate money is now a “hurry up and wait” approach for the homeowners and installers. In the past, the homeowner was guaranteed the current rebate amount that was available when their Solar Rewards Application was submitted to Xcel. Today though, the rebate amount is assigned only when their application is actually “approved” by Xcel which can be weeks after the initial submission date. During that waiting period the rebate amounts keep reducing, while homeowners keep waiting. When the first major reduction from $3.50 a watt to $3.00 a watt happened 3 weeks ago, it resulted in over $25,000 in lost rebate money for my local clients who were waiting patently for Xcel to go through their approval process. It was a hard verdict to swallow but everyone stuck to their guns though and still continued with their Solar System.
Xcel’s newly adopted program rules have some merit but, in my opinion, they are designed around the Front Range infrastructure which is a far stretch from life here in the mountains. One of the rules on their new Candidate Checklist that the customer must have a meter, whether temporary or permanent, installed on site. This seems logical unless you have been one of the numerous people in the valley who have waited 2 or even 3 months to have Xcel put in a service to your new home construction site. Unlike the Front Range where Xcel has thousands miles of service lines crisscrossing their territory and hundreds of employees to get you hooked up in a timely manner, our local Xcel distribution network here in the valley is much different. Many home sites, especially in the outlaying areas of Poncha Springs, contain lot sizes that are much larger and diverse than the typical Denver lots and the task of bring new electrical service to the property is not trivial. At times, hundreds if not thousands of feet of trenching must be done, all by a very small group of local Xcel employees who have the laborious task. This 2 to 3 month wait has made it extremely difficult for us when we are submitting Solar Rewards Applications for new construction. In the past, as long as a request for electrical service had been applied for at our local Xcel office, the criteria had been met for the Solar Rewards Application and waiting the few months for the service to be installed was not a deal killer. Nevertheless, today’s new meter requirements have many of my customers waiting in the wings for Xcel to come out and dig their trench and hook them up. Then, and only then, can we run their application with the Solar Rewards Program and lock in the most current rebate amount.
Another one of the requirements on the new Solar Rewards Program is the addition of a $250.00 deposit required for all applications. This deposit is meant to keep the workload down for the Xcel administrators who, in the past, had to deal the hundreds of applicants who just wanted to kick the tires around. This deposit keeps only the serious applicants from entering the queue and helps streamline the approval process. The deposit is fully refundable if the system is installed within 6 months which also keeps the projects moving forward.
Do the reduction of Xcel rebates mean the local Solar Industry is dying? Just the opposite actually. Speaking with the Xcel administrators last week, they said they are still busier than ever. So far, the reduction of rebates is being matched dollar for dollar by most Solar Panel Manufacturers. When Xcel’s Solar Rewards Program was launched in 2006 the rebates were $4.50 a watt with a typical installation running around $8.50 a watt. Now, with the current Xcel rebate being $2.85 a watt, a typical solar installation is reaching levels as low as $5.60 a watt. Pair that with the current Federal Tax Credit and it is still a win for the consumers.
Where does this leave the homeowners who do not reside in the Xcel energy territory? Be patient, new rebates are on the way, this time administered by the Governor’s Energy Office (GEO) with the funds from the AARA program. This new program will be slightly different than the extremely successful GEO rebate program that ran this spring and was matched dollar for dollar by utility coops like Sangre de Cristo Electric Association (SDCEA). The over-prescribed GEO/SDCEA program sold out in one month and left a lasting impression with the GEO regarding the general mindset of the citizens of Chaffee County. Nevertheless, SDCEA has opted out of the matching funds option this coming term which may change the rebates available to the Valley. As we all wait for the GEO to announce the new details though, dozens of Chaffee County residents are ready to jump on board and take advantage of the solar potential in the Valley.
Stay tuned for the next submission with information of how to finance a RE system for your home, our business. Rebates, tax credits, and financing make it simpler every day.
The City of the Salida has recognized the importance of sustainable energy sources by offering an exemption from the the City sales tax on grid-tied solar installations. That’s a savings about 3% right there.