Xcel’s solar incentive program off to good start

In the first six months of Xcel Energy’s Solar Rewards program, the solar industry has realized a significant acceleration.

Solar Rewards provides a one-time rebate of up to $4.50 per watt for photovoltaic systems up to 10 kilowatts. The program was designed to jump-start the solar industry to help Xcel meet the renewable energy requirements set in Amendment 37.

The evolution of solar electric installer Simple Solar Systems is indicative of the growth in the industry. Prior to Amendment 37 and the implementation of Xcel’s Solar Rewards program, the company received three to four inquiries per month. Now it takes three to five calls per day. Once a self-contractor, owner and President Joe Callahan now employs eight people.

“The rebate program is pretty much responsible for the big boom going on, especially in this area,´ said Traci Morin, office manager and design apprentice for Simple Solar Systems. “The response from consumers has been overwhelming.”

The flood of interest has posed some challenges for both Xcel Energy and installers. Rebates and net meters were slow to be delivered in the beginning and complex systems presented some paperwork issues.

“Launching a new program is always challenging, and it was hard to anticipate issues and questions,´ said Tom Henley, Xcel Energy spokesman. “But we’ve worked closely with installers and customers to make continuous revisions and to address some of the common issues to streamline the processes.”

The permitting process has also posed challenges. Installers have faced delays and inconsistencies. Morin said the city of Boulder has responded well to issuing permits, but the county is taking longer.

According to Mona Newton, sales and marketing director for Sun Electric Systems, the standards are not the same among different entities.

However, one expected challenge installers have not faced is a scarcity of solar panels. “Most everybody seems to be getting panels,” Newton said.

As of July 31, Xcel Energy had issued 90 rebates totaling more than $1.2 million. Since March 1, more than 300 applications have been submitted.

“We’re very pleased with the results we’ve gotten to this point, and happy with the level of interest we’ve gotten from our customers,” Henley said.

The first rebate went to Eric Doub, president of EcoFutures Building Inc. and the owner of Boulder’s first zero-energy home. During a ceremony in May, Doub received a $31,000 check from Xcel. The check covers about 57 percent of the retail cost of his 6,800-watt system, estimated to be about $54,000.

Doub uses his home as an example of what solar technology can do. People interested in seeing the home can sign up for a tour on EcoFutures’ Web site, www.ecofuturesbuilding.com. He has been doing tours about every six to eight weeks.

“There has been an explosion of interest,” Doub said. “People are captivated by the example set by the home.”
Industry members are trying to bring the concepts of zero-energy homes into the mainstream. David Adamson, founder and managing partner of Eco-Build LLC, is building a net-zero home with the hope of also using it as an example of choices consumers and builders can make.

“We are trying to show that any house can have net zero fossil fuel use and net zero ecological impact,” Adamson said.

Adamson promotes off-site offsetting to reduce the energy and ecological impact that a home has. He intends to purchase land through The Nature Conservancy to offset the ecological impact of his home after he has reduced the energy and ecological loads as much as possible.

He is currently waiting to pour the foundation and hopes to have the house completed in February or March 2007. As soon as the foundation is poured, Adamson plans to have a blog and Web site to spread the word and get others involved.

“You can have a green house for exactly as much money as you have to spend,” Adamson said. “It’s all about how you design it.”

Dave Kreutzman, chief executive officer of Next Generation Energy, is building a net-zero home in Old Town Louisville. He is building a 1,500-square-foot home from stock plans to show that normal homes can also be designed to be extremely energy efficient.

Kreutzman has seen an increased interest not only in photovoltaic systems, but also in solar thermal systems. These systems use solar energy to heat water, which is then used to heat a house and provide its hot water. Unlike solar electric systems, solar thermal systems are not part of Xcel Energy’s rebate program. However, they are eligible for a federal tax incentive.

“With the increase in energy costs, a lot of people are looking at this and saying it makes economic sense,” Kreutzman said.

Both installers and customers are excited about the solar evolution. According to Morin, some customers are celebrating by popping champagne when they flip the switch on their solar system. “They love seeing their meter go backward,” she said.

“It has been a fun, exciting and rewarding time because you know that people are finally realizing that solar energy makes sense,” Kreutzman said.

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