Learn More About Solar Power
Benefits
- Produce your own power
- Increase your property's value
- Clean
- Quiet
- Maintenance free
- Protects against future rate hikes
- Stabilizes electrical infrastructure
- Strengthens national energy security
What are the steps involved in a PV installation?
It's important to do some research before choosing a solar installer. According to Find Solar, this is the way to do it:
"When selecting a Solar Pro, look for a company that has experience installing ...the type of renewable energy system you seek. Ask them how many years they`ve been in business, ask what licenses they hold, and get (and check) references. Also ask if they have any specific manufacturer or industry training or certifications. Remember, renewable energy systems are an asset, that properly installed should provide many years of reliable service. You want a qualified professional. Get several bids, but picking the lowest bid is not necessarily the goal. Choose experience and quality too. Also compare warranty and service policies offered by competing bids."
Once you sign a contract, we can start the rebate process and get confirmation from Xcel (or any utility in Colorado that is partnering with the Governor's Energy Office on their Residential Solar Rebate Program). It usually takes about 30 days for approval. We can then order materials and set a date for installation. Once the panels arrive, the work can usually start within a week. After submitting the final paperwork, Xcel reviews the system and verifies the permits, which takes about another three weeks. After that, Xcel arranges for a net meter to be installed -- and then YOU are generating electricity from the sun!
For more information about Xcel's Solar*Rewards program, see Xcel's web page.
Solar Incentives in Colorado
Amendment 37
Passed by Colorado voters in 2004, the amendment mandates that utilities with more than 40,000 customers generate 10% of their electricity from renewable sources by the year 2015. It requires that 4% of that 10% must come from solar electric generation. It was the first voter-initiated renewable energy legislation is the U.S.
This was updated by legislation in 2006 to require these large utilities to generate 20% of their electricity from renewable sources by 2020. There is still a 4% solar "carveout."
Utility Rebates
To fulfill the requirements of Amendment 37, Xcel offers an incentive of $3.50 per watt. This covers a large percentage of the cost of a photovoltaic installation. In 2008, the Colorado Governor's Energy Office began offering rebates in partnership with other utilities across the state. Check with your local utility to see if they are a partner in the Residential Solar Rebate Program.
Tax Credit
As part of the 2005 Energy Bill, the federal tax credit covers 30% of a solar energy installation costs. In October 2008, Congress passed an 8-year extension to this tax credit and removed the $2000 cap for residential installations. Businesses can depreciate the full cost of the system over five years. Unfortunately, non-profits and municipalities cannot take the credit.
- Tax Form 5695 "Residential Energy Credits"
- Solar Energy Industries Association - Guide to Federal Tax Incentives
Net Metering
Net metering is a program that utilities are now required to offer to their customers who generate electricity. For residential solar systems, a special meter is installed to run forward as power is used in the home, and to run backward as surplus power from the PV system is supplied to the grid. Some utilities will refund the excess if, at the end of the year, the system generated more power than was used in the home. Others simply roll over any excess kW hours. Check with your utility to determine their policy.