Xcel Energy: Solar*Rewards Program

This program was designed to support a total of 20 MW of capacity for systems between 10.1 kW and 500 kW.  As of August 2011, Xcel had issued enough reservations to account for all 20 MW, and will not be accepting new applications for systems of this size.  See the program website for the most up to date information.

Xcel Energy's Solar*Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities. Residential customers who purchase a system smaller than 10 kilowatts (kW) will receive an upfront rebate payment, plus separate payments over time for the renewable-energy credits (RECs) produced by their system. Residential systems owned by a third party, and all systems larger than 10 kW and up to 500 kW will not receive an upfront rebate; they will only receive payments over time based on the electricity produced by their systems. systems larger than 500 kW can participate through a request for proposals (RFP) process.

All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification. The follow REC payments are in effect as of January 17, 2012. Check the web site above for current REC pricing.

• Customer-owned systems 0.5 kW – 10.0 kW DC: $1.00 per W (upfront payment), plus $0.09 per kWh of actual production (paid monthly)
• Third-party-owned systems 0.5 kW – 10 kW DC: $0.12 per kWh of actual production (paid monthly)
• Customer-owned or third-party-owned systems 10.1 kW – 100.0 kW DC: Program on hold
• Customer-owned or third-party-owned systems 100.1 kW – 500.0 kW DC: Program on hold
• Customer-owned or third-party-owned systems 500.1 kW or greater: determined through competitive bid process.

To qualify for a solar rebate, participants must submit an application and receive approval from Xcel Energy prior to installing the system. A list of PV modules and inverters eligible for the rebate is available on the California Energy Commission’s website. All PV systems must carry a five-year warranty from both the manufacturer and the installer, including parts and labor.

Net metering is available for Xcel Energy's customers, with net excess generation (NEG) at the end of a monthly billing period credited to the next month’s bill. If a customer has NEG at the end of a calendar year, the customer will be paid for the credit at a rate comparable to the utility's avoided-cost rate, or the customer may make a one-time election to have the NEG carried forward from month to month indefinitely.