Does My Power Company Offer Any Rebates?


Many do, we can give you the information on your own state and power company. You can also research it yourself at www.dsireusa.org . This web site works to describe every rebate in the country.

What is the Xcel Energy Rebate?

Xcel energy offers two rebates to residential customers in Colorado. The first is a straight rebate of $2.00/watt. This is calculated by just multiplying the output of your system by the $2.00/watt. The second is a Renewable Energy Credit (REC), REC's are generated by any green/renewable power source and are often bought and sold on open markets. When you put your PV system online Xcel Energy will buy the REC's that are scheduled to be generated by your system over a 20 year period. They put this into one up front payment of $.35/watt. Together the two incentives add up to the $2.35/watt. (Please check Xcel's web site on current rebates offered as they can change quickly as more and more people sign up.)


What are my obligations if I get a rebate?


To get the incentives you must sign a contract with them. This contract basically requires you to continue being an Xcel Energy customer for the next 20 years  and requires you to keep your PV system in working order during that time. They may require a minimum amount of insurance be carried on your home and to be listed as an additional insured. If you move before the 20 years they require that you assign your contract to the people who buy your home. In effect they just take over where you left off. 



What is net metering?


Part of the law that requires the power company to provide the PV incentives also requires that the utility use net metering for new PV systems. This means that each installation only has one meter for metering both power used from the utility and power generated by the PV system, the utility will effectively be paying the customer the same rate for the power they produce from the PV system as for the power they use from the utility. With a large enough system the customer will see the meter turning backwards during sunny days and forward at night. Every month the customer only pays for what they used over and above what was generated. At the end of the year if you have generated more than you used the utility will write you a check for the difference at the end of each year or you can tell them to carry the credit forward to the next year.


Does the PV system add value to my home?


Yes, according to a federal government study, a PV system will add $10 to $20 in value for every dollar saved over the course of the year. If your PV system saves you $700.00 a year it will increase the value of your home $7,000 to $14,000. The more you save the more value you add to your home. 


Do I have to declare the rebates on my taxes?


The answers we have received on this question for a homeowner is "NO", if you use the federal tax credit only on the cost of the system minus any rebates. If you use the tax credits on the entire cost them it may be taxable. We are not lawyers or tax accountants so please consult with a tax professional or an attorney when dealing with your tax issues. 




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