Xcel said Wednesday it will rebate customers $2 per watt
generated by photovoltaic panels installed on the home. The
company will also buy "Renewable Energy Credits," or RECs,
generated by customer systems for $2.50 per watt. The credits
will be counted toward the requirement, as part of the
Amendment 37 renewable energy initiative approved by voters in
2004, that Xcel have 18 megawatts of solar power on its system
by 2015.
Xcel (NYSE: XEL) is based in Minneapolis. It is Colorado's
largest utility serving 1.3 million electric customers in the
state.
A common size for residential photovoltaic systems in
Colorado is 2-3 kilowatts, and total payments to customers for
this size would be in the $9,000 to $13,500 range. This would
cover approximately half the installation cost, since typical
photovoltaic systems are priced at $8,000 to $10,000 per
kilowatt, Xcel said.
Systems installed after Dec. 31, 2004, are eligible for the
rebates and credit awards.
Owners of solar power systems capable of generating more
than 10,000 kilowatts can offer their renewable energy credits
to Xcel under a bidding process, with the low bidders winning
the competition.
To pay for the cost of adding renewable energy to Xcel's
system, residential customers will see an average increase in
their monthly bills of 35 cents. Commercial customers will pay
an average of 69 cents per month.
"The company plans to aggressively market the Xcel Energy
Solar Rewards program to bring in new customers who want to be
involved in developing a clean, renewable-energy technology,"
said Fred Stoffel, vice president for policy development, in a
statement. "With an annual average of 300 sunny days in
Colorado, the opportunity for this solar program to be
successful is tremendous."