In was passed as a voter initiated proposal to
require more renewable energy provisions in our state. Regarding solar
specifically, those utilities that have 40,000 customers or more are
required to have a certain percentage of their power come from solar
electricity. In Western Colorado, this means that Xcel Energy must
comply with Amendment 37 and the only feasible way to meet this goal is
to offer rebates. Therefore, if your utility provider is Xcel Energy,
you get a rebate amount back of $4.50/ installed watt of solar or, in
more real terms, about 50% of the installed cost of the system. Some
smaller co-ops and local utility providers are also offering their own
rebate programs. Others have opted out. To find out more, visit the DSIRE website, Colorado Incentives for Renewables and Efficiency.
Federal Rebate
In addition to this rebate, there is a federal commercial solar rebate
available for 30% of system cost. Whereas the residential tax rebate
is capped at $2,000, the commercial rebate has remained uncapped,
creating a very inviting situation to add solar to a business. This
30% tax incentive leaves the bottom number of a commercial solar
electric system extremely small. Pair the Xcel Energy rebate with the
federal tax incentive and then add on the accelerated depreciation of
this system, considering also the free power created by the system each
year, and you have created a situation in which a commercial solar
system seems impossible to say no to.
