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Customers going solar thanks to Xcel rebate

$1.2 million paid out in first six months

Gargi Chakrabarty, Rocky Mountain News

Published August 25, 2006 at midnight

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Xcel Energy's solar rebate program has broken the $1 million mark, and there are still about 200 sun-powered customers waiting for their checks from the utility.

One of the 100 or so who got rebates is John Avenson, who turned his Westminster home into an "intelligent home" when he built it 20 years ago.

His house became more intelligent this summer, thanks to Xcel's Solar Rewards program, which paid him thousands of dollars in rebates to install solar panels on his roof. The panels use sunlight to generate electricity - enough to power most lights and appliances in his house.

"The rebates made it affordable for me to go almost completely solar," the 53-year-old engineer said.

Avenson is not alone in going solar.

Since Xcel's program debuted on March 1, the utility has paid $1.2 million in rebates. Those customers installed about 350 kilowatts of panels, enough to power 55 homes for a year.

The number of solar customers is on track to grow exponentially, given that Xcel has an additional 210 rebate applications under review, said Xcel spokesman Tom Henley.

The utility has earmarked a total of $20 million this year for the rebate program as well as a portion of the cost of its 8-megawatt solar farm in the San Luis Valley, estimated at $60 million.

"The number (of customers) is small right now, but it's a tremendous start," Henley said. "We need to build on this start and move down the road."

But there's a long way to go.

Xcel needs to install about 18 megawatts of solar panels by 2010, according to Amendment 37, which Colorado voters approved in November 2004.

It plans to get a little more than 8 megawatts from the San Luis Valley plant. The remainder will have to be installed by customers. The 90 customers in the first five months account for 4.4 percent of that requirement.

Customers can earn up to $4.50 per watt in rebates and credits from Xcel, and an additional $2,000 in federal tax credits. That would cover more than half the total cost of going solar.

For example, the cost of installing a 3.4 kilowatt system consisting of panels, equipment, wires, local permits and engineering fees is $27,000. If installed correctly, a customer could get back a maximum of $17,300 in rebates and credits.

Assuming that electric rates will increase, a customer can recover the money spent out of pocket, in this case $9,700, in seven to nine years through savings on electric bills.

Denver-based SolSource Inc., which distributes and installs solar panels, has serviced 50 customers in the metro area, and its customer list is growing.

"Xcel's rebate program allows us to get solar to people who thought they couldn't get solar before," said SolSource President Jeff Scott.

To get the maximum rebate, Scott said, the best orientation of a house is a south-facing roof, which gets sunlight throughout the year.

When Avenson built his south-facing house in 1982, the National Renewable Energy Laboratory (then called the Solar Energy Research Institute) helped make it energy-efficient. But he didn't have the money to go completely solar.

Last May, Avenson decided to make use of Xcel's rebate program.

He spent $37,000 in solar panels to power his 2,000-square-foot home and got about half back in rebates and credits. Also, his electric bill dropped 70 percent each month.

"I feel having a green home is more in our hands now," he said, "because it's so easy to get all the stuff done."

Installation tips

• Get an energy audit to determine how many panels are needed, where they should be placed, etc.

• Find an installation company (check or

• Get an estimate on cost and rebates.

For example, a 3.4-kilowatt system would provide most of the electricity for a 2,000-square- foot, energy-efficient home. The system would cost $27,000, but a customer could get back a maximum of $17,300 in rebates and credits.

The remaining $9,700, paid out of pocket, could be recovered through savings on electric bills over seven to nine years, assuming electric rates increase. Without that assumption, it would take 14 to 17 years to recover the investment.

• For questions about Xcel's rebate program, call 1-800-328-8226, e-mail solarprogram@xcelenergy.com or visit solar.

or 303-954-2976