I think Xcel should have given people more than 24 hour notice, they should have given them 2 months notice.
I got an email from REC Solar this morning telling me that the solar rewards rebate the Xcel hands out will lower from $4.50 to $3.50.
I wonder what will happen to the Colorado solar industry as the rebates drop.
I think Xcel should have given people more than 24 hour notice, they should have given them 2 months notice.
The rebate will be lowered from $4.50/DC watt to $3.50/DC watt, resulting in increased solar system pricing.
In order to qualify for the $4.50 rebate amount, we have to submit your application by 11:50pm today, Friday, October 24, 2008.
that sucks
i just got an estimate yesterday
peach
darn for all you folks – but the new federal rebate that kicks in on Jan will more then make up the difference.
I need to get someone to breakdown the numbers for me on a video interview. I will try to get one of those soon.
There was an article in this Wednesday’s Rocky Mountain News on this topic, but I think it is a bit misleading. In the article, Ritter claims that you can not get the increase rebate (30% of cost upto a cap of $8000) until you file your 2009 taxes. This is only true if you wait to buy your system in 2009 and would mean you would not get the increased rebate until you file your taxes. If you purchased your system in 2008 – yu have to wait to “bring it on-line” as the law stated til January. If you comply with that, you can take the full $8000 in your 2008 taxes.
There are other ways to get that $$ faster. The best way is to increase your deductions at work.
http://www.rockymountainnews.com/news/2008/oct/29/ritter-xcel-at-odds-over-solar-subsidy/
I agree that Xcel should have given more notice, but the good news is that the Federal Tax Credit is 30% UNCAPPED now! So, while the rebate may have dropped (and yes, you have to have a little more money upfront now), it is still a significant savings. Plus – there are other things to consider, such as the price of electricity rising, and the environmental benefits.
Here’s an example:
System Size: 4 kW (provides approximately 5,500 kWh per year)
Estimated Retail Price: $ 33,000
Xcel Rebate:
(4000 watts * $3.50)
-$14,000
Federal Tax Credit: – $9,900
Net Cost: $9,100
Thanks Kelly for outlining that for me.
What is to be thought of this reduction. These posts are old, but I am sure not outdated. Excel will open Comanche coal plant in Pueblo,undoubtedly payed for by us the customers. But the kicker is a million dollar solar array in the San Luis Valley, all to gain the 15 to 17 year profit on investment. Does it not seem that they require a 8 to 12 % increase in prices every year. To reduce the rebates to the consumer and build there own plant seems ridiculous. If they have truly invested in Green technology, should not they have excelled profit stemming from their own Solar energy plant to increase consumer rebates. Just a thought.
Xcel posted a “letter” dated 23 October 2008 explaining this change at http://xcelenergy.com/SiteCollectionDocuments/docs/SO-RECReductionLetter.pdf (may need to first select your state on the Xcel web site in order to view the web page). The third page of the letter is an attachment that works through the pricing of a “typical” 4500 W system in various before / after scenarios. I find it interesting that Xcel’s calculations apply the 30% Investment Tax Credit (ITC) to the system cost *after* Xcel rebates. Applying the ITC to the cost *before* rebates would obviously be more desirable. I have been unable to find information anywhere else that takes a position on how the ITC is to be calculated with regard to any applicable reabtes. The Xcel document seems to allow for this with the footnote “actual tax treatment may be different.” Now that the $2,000 ITC cap has been removed, it can make a substantial difference. A homeowner planning for a residential installation should have a clear understanding of the tax implications of Xcel’s rebates.