The changes are prompted by the decline in solar panel costs and increasing subsidization from government programs. Together, these developments have reduced the level of Xcel Energy incentives needed to support customer participation in Solar Rewards. The new incentive levels will continue to provide support to the market while investing customer funds prudently.
"We established Solar Rewards to stimulate interest in installing solar systems on homes and businesses, and to make sure the technology is part of Colorado’s energy mix," said David Eves, president and CEO of Public Service Co. of Colorado, an Xcel Energy company.
"The program has been successful in doing that. We’re increasingly optimistic in our ability to meet the goal for customer-sited solar as required in HB 1001, which increased Colorado’s Renewable Energy Standard to 30 percent by 2020. We look forward to the industry’s continued progress so that it can ultimately become self-supporting." he added.
The combined Solar Rewards incentive for small, customer-owned systems will be paid at $2.01 per watt, from the previous $2.35 per watt. The medium and third-party-owned programs will be adjusted similarly. There will be no incentive change for applications already approved; they will be paid at the previously agreed upon amounts.