Financing Rebates Incentives Power Purchase Agreements
Colorado Solar Incentives:
Property and Sales Tax Credits:
Colorado enacted legislation in April 2007 to authorize counties and municipalities to offer property or sales tax rebates or credits to residential and commercial property owners who install renewable energy systems on their property.
Net Metering:
In December 2005, the Colorado Public Utilities Commission (PUC) adopted standards for net metering and interconnection, as required by Amendment 37, a renewable-energy ballot initiative approved by Colorado voters in November 2004. The PUC standards initially applied to the state's investor-owned utilites (IOUs), but were extended in March 2008 to municipal utilites with more than 5,000 customers and all cooperative utilities.
In the IOU service areas, systems up to two megawatts (MW) in capacity using are eligible for net metering. Electricty generated at a customer's site can be applied toward meeting a utility's renewable-generation requirement under Colorado's renewable portfolio standard (RPS). The RPS mandates that 4% of the renewables requirement be met with solar energy.
Under Colorado's net-metering rules, any customer's net excess generation in a given month is applied as a kilowatt-hour (kWh) credit tot he customer's next bill. If in a calendar year a customer's generation exceeds consumption, the utility must reimburse the customer for the excess generation at the utility's average hourly incremental cost for the prior 12-month period.
If a customer-generator does not own a single bi-directional meter, then the utiltiy must provide one free of charge. Systems over 10 kilowatts (kW) in capaciity require a second meter to measure the output for the counting of renewable-energy credits (RECs). Customers accepting IOU incentive payments must surrender all renewable energy credits (RECs) for the next 20 years. Cooperative and municipal utilities are free to develop their own incentive programs at their descrection but they are not subject to the solar-specific requirements of the RPS.
Solar Access:
Dating back to 1979, Colorado state law prohibits any residential covenants that restrict solar access. HB 1270 of 2008 extended the law to protect installations of wind turbines that meet the state's interconnection standards, and certain energy-efficiency measures including awnings, shutters and other shade structures, garage fans, energy-efficient outdoor lighting, retractable clotheslines, and evaporative coolers. Colorado also allows property owners to agree voluntarily to solar easements with their neighbors for the purpose of protecting and maintaining proper access to sunlight.
For a complete listing of all Colorado incentives, visit:
Colorado Incentives
Colorado Governor's Energy Office
Federal Solar Energy Incentives:
The 2009 American Recovery and Reinvestment ACt (ARRA) include a number of important tax credits and other incentives for solar electric and solar how water systems. Of particular importance is that tax credits for both residential and commercial were extended until December 31, 2016. The ARRA builds on The Energy Policy Act of 2005 and Energy Improvement and Extension Act of 2008.
Colorado Solar Incentives:
Property and Sales Tax Credits:
Colorado enacted legislation in April 2007 to authorize counties and municipalities to offer property or sales tax rebates or credits to residential and commercial property owners who install renewable energy systems on their property.
Net Metering:
In December 2005, the Colorado Public Utilities Commission (PUC) adopted standards for net metering and interconnection, as required by Amendment 37, a renewable-energy ballot initiative approved by Colorado voters in November 2004. The PUC standards initially applied to the state's investor-owned utilites (IOUs), but were extended in March 2008 to municipal utilites with more than 5,000 customers and all cooperative utilities.
In the IOU service areas, systems up to two megawatts (MW) in capacity using are eligible for net metering. Electricty generated at a customer's site can be applied toward meeting a utility's renewable-generation requirement under Colorado's renewable portfolio standard (RPS). The RPS mandates that 4% of the renewables requirement be met with solar energy.
Under Colorado's net-metering rules, any customer's net excess generation in a given month is applied as a kilowatt-hour (kWh) credit tot he customer's next bill. If in a calendar year a customer's generation exceeds consumption, the utility must reimburse the customer for the excess generation at the utility's average hourly incremental cost for the prior 12-month period.
If a customer-generator does not own a single bi-directional meter, then the utiltiy must provide one free of charge. Systems over 10 kilowatts (kW) in capaciity require a second meter to measure the output for the counting of renewable-energy credits (RECs). Customers accepting IOU incentive payments must surrender all renewable energy credits (RECs) for the next 20 years. Cooperative and municipal utilities are free to develop their own incentive programs at their descrection but they are not subject to the solar-specific requirements of the RPS.
Solar Access:
Dating back to 1979, Colorado state law prohibits any residential covenants that restrict solar access. HB 1270 of 2008 extended the law to protect installations of wind turbines that meet the state's interconnection standards, and certain energy-efficiency measures including awnings, shutters and other shade structures, garage fans, energy-efficient outdoor lighting, retractable clotheslines, and evaporative coolers. Colorado also allows property owners to agree voluntarily to solar easements with their neighbors for the purpose of protecting and maintaining proper access to sunlight.
For a complete listing of all Colorado incentives, visit:
Colorado Incentives
Colorado Governor's Energy Office
Federal Solar Energy Incentives:
The 2009 American Recovery and Reinvestment ACt (ARRA) include a number of important tax credits and other incentives for solar electric and solar how water systems. Of particular importance is that tax credits for both residential and commercial were extended until December 31, 2016. The ARRA builds on The Energy Policy Act of 2005 and Energy Improvement and Extension Act of 2008.
- Investment Tax Credit (ITC) of 30% of the total installation costs, with no maximum credit limit for commercial systems. Eligible property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Credits are available for eligible systems placed in service between 12/31/2008 and 12/31/2016.
- Personal Tax Credit (ITC) of 30% of installation costs, including solar energy equipment and labor, for residential systems.
- The Act removes the $2,000 cap on Solar Electric and Solar Water Heating and provides a personal tax credit for the purchase of qualified solar water heating property that is used for a purpose other than heating swimming pools and hot tubs. The credit may be claimed aginst the alternative minimum tax. The home served by the system does not have to be the taxpayer's principal residence.
- Solar on Federal Property. The Act appropriates $5.5 billion for the purpose of constructing and repairing federal buildings to increase energy efficiency, which may include installing solar energy equipment.
- Repeals Penalty for Subsidized Renewable Energy Financing. The Act allows businesses and individuals to qualify for the full amount of the solar tax credit, even if projects receive subsidized energy financing (e.g. below market loans, tax preferred bonds, state grants etc.) beginning January 1, 2009.
- Modified Accelerated Cost-Recovery System. Under the MACRS, business may recover investments in solar systems through five-year depreciation deduction. The federal Economic Stimulus Act of 2008 (2/08) included a 50% bonus depreciation for eligible renewable-energy systems acquired and placed in service in 2008. This provision was extended (retroactively to the entire 2009 tax year) under the ARRA.
For more information about Federal tax incentives, visit: www.seia.org
