Colorado's Solar Rebates and Incentives

Colorado is a national leader in solar power. It was the first state in the country to approve a renewable portfolio standard, requiring 0.4% of its energy to come from solar power. This may not seem like a lot, but it has made a world of difference in the state. Rebates and incentives are left primarily to utilities and local municipalities, but the state's RPS is quite the motivator. Here are some examples of what Colorado residents can expect:

TAX CREDITS

The Colorado legislature has enacted legislation allowing local municipalities to offer property tax exemptions to homeowners who install solar PV or solar thermal electric systems.
Contact your local city or county to see if there is a program in existence or if one is on the way. For a list of cities (all cities may not be listed), see the Colorado Municipal League website. For counties, see Colorado Counties, Inc.

REBATES AND INCENTIVES

Local PV Rebate Programs

The Colorado Governor's Energy Office (GEO) provides matching grants for local municipalities to provide photovoltaic rebates to homeowners looking to install solar electric systems. Administered by the Colorado Solar Energy Industries Association (CoSEIA), the GEO solicited proposals for funding from cities, towns, utilities, and electric cooperatives that are outside the service of the state's two investor-owned utilities.
Rebates will vary depending on the area. Expect maximum incentives to be between $3,000 and $6,000, depending on the program.
Eligible systems must be grid-tied and homeowners are required to have a home energy audit performed prior to acceptance and installation.
For a list of participating jurisdictions, see this CoSEIA site.

Local Solar Water Heating Rebate Programs

This program is administered in the same way as the PV rebate programs listed above.
Rebates will range from $750 to $3,000 depending on the program.
Again, see the CoSEIA website for a list of partners and further details.

The two investor-owned utilities, Xcel and Aquila, also offer rebate programs to their customers. Both utilities offer up to $4.50/watt rebates for residential systems up to 10 kW. The rebates will come in a mixture of cash and renewable energy credits (REC). See the DSIRE: Colorado site for detailed summaries.

NET METERING

Colorado offers net metering rules for solar homeowners. All utilities in the state are included (although municipalities must have 5,000 or more residents) but specifications vary between investor-owned utilities (IOUs) and other utilities.
Systems up to 2MW are eligible for IOUs. Systems must be 10 kW or less for residential systems under the jurisdiction of municipal utilities and electrical cooperatives.
As for net excess generation (NEG):
IOUs - Credited to customers following monthly bill. Purchased from customer at the end of the annual billing cycle at the average, incremental hourly rate for that year.
Municipalities/Electric Coops - Credited to customer's bill. At the end of the billing cycle, NEG is purchased at a rate deemed appropriate by the utility.
See the Colorado PUC for more information.

Colorado is unique among other states because, without a totally state-funded program, it has managed to get a solar incentive program in nearly every utility in the state. It is great to see Colorado taking advantage of its super-sunny climes (and climbs). Their 2 MW limit on net metered systems ties New Jersey for best in the nation. Another great fact about Colorado is the way communities are stepping up and moving above and beyond what the state offers. Take Aspen as an example. Just like a skier on a Colorado ski-lift, things can only go up from here.

USEFUL LINKS