Colorado
Recent Updates
On March 7, 2007 Governor Ritter signed HB07-1281 into law--which doubles the renewable energy targets from Amendment 37. This is another great victory for clean energy, proving that when the people lead the leaders will follow. With the appetite for renewable energy at such tremendous levels, the legislature had to prove that it could stay ahead of the populace – that is the kind of competition that we love. Kudos to our friends at Environment Colorado who lead the charge in passing this bill.
Background
In 2004, clean energy advocates in Colorado were the first in the country to take renewable energy to the popular vote, asking voters to pass a ballot initiative (Amendment 37) to create a state-wide renewables portfolio standard. The answer was a resounding yes and a dramatic victory for clean energy. The RPS had a solar set-aside requiring that 0.4% of the state's power should come from solar energy by 2015.
Amendment 37 set the stage for dramatic changes to regulations relating to solar in Colorado. Since the victory, solar advocates in the state have successfully argued to increase the net metering limit to 2 MW, on par with the country's best standard established in New Jersey. The interconnection process has also been streamlined for systems up to 2 MW. Furthermore, as a result of Amendment 37 Xcel Energy has established a residential solar rebate program and will soon begin its commercial solar program.
Policy Needs
The largest hurdle to solar remaining in Colorado is the current structure of the tariffs, particularly the commercial tariff offered by Xcel energy. The Schedule "PG" tariff charges just 3 cents/kWh for energy and the bulk of the utility bill coming through monthly demand charges. Obviously there is no incentive to reduce electricity usage or install a solar system when energy only costs 3 cents/kWh. No solar program can ever be successful with this type of tariff. Even if panels were free, no one would go through the hassle of installing them on a roof.
Next Steps
The next Xcel general rate case will provide an opportunity to update the tariffs that Colorado utilities offer their customers. Vote Solar is strategizing with Colorado solar and efficiency advocates to determine the best way to achieve fair and balanced energy tariffs that reflect the value of solar energy to the system.
Updated 6/17/07