CRES Addresses Critical Need for Stable Solar Incentives

DENVER―February 22, 2011―The Colorado Renewable Energy Society today addressed the critical need for sustainable policy for solar incentive programs, in order to protect the growing solar industry as well as Colorado’s economy.

Xcel Energy recently took actions that effectively suspended its solar incentive program for on-site projects. This action immediately dropped the purchase price of renewable energy credits (RECs) from 35 cents to 1 cent and lowered the total incentive from $2.35 to $2.01. Along with this immediate drop in the incentive, Xcel Energy put a cap of 3 MW on any new applications into the program. This cap was reached in less than 24 hours, effectively suspending the solar incentive program on the afternoon of Thursday, February 17, 2011.

In addition to lowering the REC incentive, Xcel Energy filed a request to the Public Utilities Commission (PUC) to lower the rebate amount from $2.00 per watt to 25 cents. If the PUC approves this request the rebate portion of the incentive would be lowered by 88%. Also, no applications will be taken for on-site solar project until the Public Utilities Commission rules on a filing by Xcel Energy.

Xcel Energy’s actions are a prime example of how unstructured incentives can impact the solar industry as well as Colorado’s economy. Since the announcement was made last week, businesses have already reported canceled contracts and lost business. It is critical that a stable, long-term solar incentive program be initiated immediately. A program is needed that does not allow market shocks to the emerging and growing solar industry.

CRES, Colorado’s renewable energy resource, has the experience and resources to help build and advise on sustainable programs for renewable energy and will be participating at all levels to support a stable long-term solar incentive going forward.

“Not only is a stable policy critical to the solar industry, but also to Colorado’s immediate and future economic growth,” said Tony Frank.

To submit comments to the PUC on Xcel’s Energy proposed changes please click on the link below:
http://www.dora.state.co.us/puc/consumer/ConsumerComment.htm

In addition, an event is scheduled in support of a more stable solar incentive program for Friday, February 25, 12:00 p.m. to be held on the west steps of Colorado State Capitol building in Denver.

The Colorado Renewable Energy Society is a non-partisan, non-profit 501(c)(3) membership organization that works to inspire an era of clean energy innovation, speeding the transition to a sustainable energy economy in Colorado by advancing education, policy, and development.

www.cres-energy.org

For more information:

Tony Frank Executive Director 303-806-5317 t.frank@cres-energy.org

Aurora Arlet Public Relations Lead 303-579-2255 a.arlet@cres-energy.org

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