By Chris Dieterich
Fort Collins Now
1:05 a.m. MT Mar 24, 2008

Legislation:

Colorado's Homegrown Energy Act, a bill that will require all electricity providers to give a standard rate to households that plug into grids, is expected to be signed by the governor this week. A measure that would require all energy providers to match Xcel-level incentives for residential solar generation, and a separate measure to authorize local governments to make special grants to promote home energy generation are also in the works.

Global warming is a hot topic these days.

So hot, in fact, that discussion on how to slow the effects of global climate change by transitioning to renewable energy sources is simmering like never before, and the push is causing more and more people to think about reducing their own “carbon footprint.”

Residential solar energy has become an increasingly viable option among environmentally proactive Coloradans, a trend driven in large part by a series of programs that aim to reduce the upfront cost homeowners pay to light and heat their homes using solar technology.

Certainly this was on the mind of Larimer County resident Gordon Rodda when he had a 1.8-kilowatt solar energy system installed on the roof of house just outside of Fort Collins at the end of 2006.

“The planet is facing very serious challenges. Producing solar energy at my home is one of the easiest ways to address this—it's much easier than not driving a car or not buying food that was produced far away,” Rodda said. “Nothing speaks more to your personal ethic than what you put into your home.”

A series of cost-reducing incentives made it possible for him to save an estimated $10,000 on an electricity-generating solar system that would have cost $17,000. Rodda's panels give him more electricity than he uses. In fact, his energy provider, Xcel Energy, even sent Rodda a modest check for the surplus energy his system put back into the grid.

But head east on Laporte Avenue a few miles from Rodda's home and the financial incentives for installing solar are very different. Colorado's commitment to strong renewable energy standards-major utilities must produce 20 percent renewable energy by 2020-is among the boldest in the nation, but the existing framework of policy mandates means large energy providers like Xcel are required to offer different solar incentives than municipal utilities and electric co-ops.

Residents of Fort Collins and those living around the outskirts primarily pay their electric bill to either Fort Collins Utilities, Poudre Valley REA or Xcel, and as the provider currently determines how much of a subsidy is available, lots of sunshine isn't necessarily the most crucial factor in figuring if a home's location makes solar sense.

Bella Energy, a Boulder-based solar energy company that installs solar energy systems, has had to expand dramatically since Colorado's Amendment 37 required that 4 percent of renewable energy come from solar sources, according to President Jim Welch.

“We've certainly seen a strong increase in demand over the past few years,” Welch said. “Mostly in the Xcel areas, but other places as well.”

To meet the standards of Amendment 37, Xcel created a system of rebates that can cut tens of thousands of dollars from the cost of installation, or $4.50 per watt produced. This rebate, on top of a federal tax credit that covers up to $2,000 for installing a system, is how Rodda saved 10 grand.

Fort Collins Utilities and Poudre Valley REA are not required to credit customers for installing solar systems, but each, as part of their own renewable energy programs, offer forms of net metering, a practice that allows homeowners to plug into the electric grid and receive credit for the electricity their equipment produces. Systems, such as Rodda's, that produce more electricity than the homes consume—net positive—are compensated by energy providers for putting power into the grid.

For over three years, Fort Collins Utilities has offered a pilot residential solar program that allows customers to plug into the grid and get credit on their energy bill for what they produce. Fort Collins resident Rich Shipman owns a small solar array, which is a group of paneling, and still gets a kick out of watching the his meter run backward because of the net metering pilot program.

Utilities Energy Services Engineer Norm Weaver noted that 12 customers currently take part in the effort.

“More and more people were asking the city to offer net metering,” Weaver said. “The pilot program is primarily about gathering data so the city can find out what it will take to provide this kind of widespread service in the future.”

Though scheduled through the end of 2009, Weaver indicated that Fort Collins Utilities will likely have sufficient cause to make the net metering program permanent before then.

Having installers head up to the roof to put in solar arrays isn't the only way to go solar, of course. Trends in residential solar can also be seen in planned and newly built houses. Olivario Pijoan's Fort Collins home on Mountain and Loomis avenues incorporates a solar thermal system that provides hot water and heating from the sun's rays. A small solar unit also provides the electricity needed to run an evaporative cooler in addition to other innovative conservation features. Rebates played a big part in Pijoan's decision to add the solar features.

Dennis Sovick, president of Sovick Design/Builders, designed Pijoan's home. To him, the trend of increased residential solar demand is unmistakable.

“The more tax, utility and government incentives there are, the more people will use them even if the pack back is long-term.” he said. “In 30 years I have never seen such a market interest in green building as I have seen now. [Solar units] will be part of the many options in green building.”

Standardization of the incentive system in Colorado is a goal for many solar advocates. Pam Keily, legislative director for Environment Colorado, hopes a series of upcoming bills will allow for a more uniform policy.

“Forty percent of Coloradans don't have access to the rebates,” she said. “The continuous efforts of advocates and utilities, further changes to the renewable energy standard, the sheer demand on the part of consumers and technological improvements in the industry will bring down the cost of residential solar in years to come.”

In the meantime, residents with access can take advantage of some of the best installation rebates and net metering services in the country to reduce what can be prohibitive upfront costs.

A customer of Fort Collins Utilities, Jean Muirhead has managed to take advantage of large temporary Xcel rebates and take part in the Fort Collins Utilities solar pilot program. When she installed her 16-panel array in 2006, reducing what would have been $28,000 system to $17,000. No chump change, to be sure. But for Muirhead, environmental reasons trump any financial benefits. She's even thinking about adding another few panels to become net zero.

“I'm not doing it to save money,” she said. “For just the price of a new car I can do something that can really help the environment.”

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