On March 23, 2011, Xcel will be reinstating their Solar*Rewards program, with a reduced up-front rebate and an extended performance-based renewable energy credit.  On March 4, Public Utilities Commission (PUC) and stakeholders worked out a compromise: Xcel will reinstate the Solar*Rewards program with an up-front rebate of $1.75 paid per watt, and $0.04 per kWh paid over 10 years.

Since February 16th, when Xcel suddenly halted it’s successful Solar*Rewards program, solar sales have been down. Xcel shut down the rebate program to await a decision on Xcel’s proposal to drop the rebate from $2.00 per watt of installed solar power to $0.25 per watt. Xcel’s problem with the Solar*Rewards program was that it was – get this - too successful! Because the program is funded by a 2 percent charge to Xcel customers (yes, it is all of us who are actually are paying for the rebates, but I believe it’s an investment worth making for our future), the rebates exceeded the available funding, so Xcel needed to borrow money to pay the rebates. The compromise to rebate $1.75 paid per watt up-front , and $0.04 per kWh to be paid over 10 years helps Xcel defer a some of the rebate costs to help keep from borrowing funds, while still supporting the solar energy industry by helping to keep solar costs more affordable for everyone.

Colorado Solar Energy Industries Association helped bring the Solar Rebates back by filing a request that Xcel reinstate the Solar*Rewards Program immediately. On March 4th, the Public Utilities Commission heard a full day of testimony, mostly supporting the reinstatement agreement, and the commissioners instructed stakeholders to work out a compromise, which was agreed to and will be put into place on March 23rd.

So thanks COSEIA and all other solar supporters — sunny Colorado (at least for now) is back in solar business. So let’s all start taking advantage of the rebates and get solar panels put on our houses and businesses — and let’s forget about installing more Nuclear and coal based power plants to support our energy needs!