Program incentive to reflect drop in solar panel and installation
costs
DENVER--(BUSINESS WIRE)--
Xcel Energy announced today changes to its Solar*Rewards program to
include an immediate reduction in the combined program incentive and a
filing with the Colorado Public Utilities Commission (CPUC) for approval
to lower the rebates offered through the program for on-site solar
energy installations.
The changes are prompted by the decline in solar panel costs and
increasing subsidization from government programs. Together, these
developments have reduced the level of Xcel Energy incentives needed to
support customer participation in Solar*Rewards. The new incentive
levels will continue to provide support to the market while investing
customer funds prudently.
“We established Solar*Rewards to stimulate interest in installing solar
systems on homes and businesses, and to make sure the technology is part
of Colorado’s energy mix,” said David Eves, president and CEO of Public
Service Co. of Colorado, an Xcel Energy company. “The program has been
successful in doing that. We’re increasingly optimistic in our ability
to meet the goal for customer-sited solar as required in HB 1001, which
increased Colorado’s Renewable Energy Standard to 30 percent by 2020. We
look forward to the industry’s continued progress so that it can
ultimately become self-supporting.”
Starting today, the combined Solar*Rewards incentive for small,
customer-owned systems (0.5 - 10 kilowatts) will be paid at $2.01 per
watt, from the previous $2.35 per watt. The medium and third-party-owned
programs will be adjusted similarly. There will be no incentive change
for applications already approved; they will be paid at the previously
agreed upon amounts.
Xcel Energy also is filing today with the CPUC for approval to change
the rebates for participants at the four program levels. For example,
upon commission approval Xcel Energy plans to offer a combined incentive
of up to $1.25 per watt for small systems.
The company will accept applications for up to three megawatts of
customer-site solar energy between today and the commission’s approval
of its filing. By the end of the year, Xcel Energy projects that it will
have committed for up to 59 megawatts of customer-site solar, compared
to 27.5 megawatts in 2010. Since the program began in March 2006 and
through the end of 2010, 76 megawatts of on-site solar energy have been
installed, with $178 million paid in incentives.
According to Deutsche Bank, the cost of solar panels has dropped 50
percent from 2008 to 2009. The Colorado Solar Energy Industries
Association reports the industry grew by 91 percent last year.
“Just as wind energy is now more competitive, solar energy is moving in
that direction too,” Eves said. “Xcel Energy is committed to creating a
clean energy future for Colorado at a reasonable cost to our customers.”
Xcel Energy will file a Renewable Energy Standard Plan with the CPUC
this spring that outlines the future of Solar*Rewards, consistent with
market conditions. This will include a plan for 2012 and beyond,
including Solar Gardens.
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas
company that provides a comprehensive portfolio of energy-related
products and services to 3.3 million electricity customers and 1.8
million natural gas customers through its regulated operating companies
in eight Western and Midwestern states. Company headquarters are located
in Minneapolis. More information is available at www.xcelenergy.com.
This news release includes forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words “anticipate,” “estimate,” “expect,” “projected,”
“objective,” “outlook,” “possible,” “potential” and similar expressions.
Actual results may vary materially. Factors that could cause actual
results to differ materially include, but are not limited to: general
economic conditions, including their impact on capital expenditures;
business conditions in the energy industry; competitive factors; unusual
weather; changes in federal or state legislation; regulation; risks
associated with the California power market; currency translation and
transaction adjustments; the higher degree of risk associated with Xcel
Energy’s non-regulated businesses compared with Xcel Energy’s regulated
business; and the other risk factors listed from time to time by Xcel
Energy in reports filed with the Securities and Exchange Commission.
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Source: Xcel Energy
Contact:
Xcel Energy
Media Relations, 303-294-2300
www.xcelenergy.com