February 16th – a day to remember for all Xcel customers and the solar energy industry. Xcel Energy announced they have filed with the Public Utilities Commission to reduce the current rebates for new solar installations. The current residential rebate of $2.35 per watt (<10kw) includes a rebate of $2.00 and a REC (credit) of $.35. Their proposed total rebate is $1.25 which includes a rebate of $.25 and REC of $1.00. In the interim, before the PUC commission decides, Xcel set the REC at 1 cent and rebate at $2.00. However, Xcel froze all new applications, so the interim is moot.
What frustrates the solar industry most is the action of Xcel to abruptly stop the program when a plan was in place to reduce rebate payments gradually as the renewable energy standard goal was met. The REC component is scheduled to drop to zero as the total residential capacity reached about 100 MW. Renewable Energy Standard Adjustment (RESA) income from a 2% rider on Xcel customer billing provided the funds to continue the Solar Rebate program. We voted to continue supporting renewable energy.
This action will cause a storm before the PUC meeting in May, and most likely the rebates will be restored to some degree, but the damage to the solar industry has been done!
