Colorado Springs: What Are the Available Solar Tax Incentives and Rebates?

by Larissa PPC Solar 8/27/2013

The U.S. residential solar business has been growing quickly on account of government incentives and financing options that help to bear the cost of installing solar electric systems. The declining costs of solar panels and other equipment also have helped to make solar more appealing. In Colorado, the solar “Gold Rush” is gaining momentum.  The Colorado Renewable Energy Standard is progressive, with 30% renewables by 2020.  It was amended by State Senate Bill 252 last June, and the bill doubled the renewable energy requirement for cooperative utilities of a certain size, allowed for additional technologies to qualify, created a distributed generation carve-out for cooperative utilities, and made a new requirement for generation and transmission cooperativesIn Colorado Springs and Pueblo, the solar activity is just beginning, and we’ll review the available tax incentives and rebates that are available to homeowners… more

Ready for tax relief? That’s the perfect time to invest in solar.

Available Federal Tax Credits for Solar

There is a 30% federal income tax credit that everyone is qualified to receive regardless of the state they live in.  You may be asking yourself, “What’s the difference between a credit and a deduction?” (Or maybe you’re not. But trust us: a credit is a good thing). Unlike deductions, which take money off your taxable income and vary in value depending on how much you make, a credit reduces your tax bill by a set dollar amount.

Here is an example:  your taxable income is $60,000 and you are in the 25% tax bracket. Your tax liability would be $15,000. If you had a $5,000 deduction, that would reduce your taxable income to $55,000, and your tax would be $13,750 — a savings of $1,250. However, if the $5,000 is a tax credit, then it is subtracted from your tax, and you would pay a tax of $10,000 — an additional savings of $3,750.

What Would You Like to Learn About Solar?

Colorado Springs Utility Rebate Program

According to Colorado Springs Utilities (CSU), the Renewable Energy Rebate Program (RERP) supports and encourages customers to install solar PV generating systems at their homes and businesses, which helps protect the environment, diversifies the energy supply, creates energy independence, and reduces the summer peak capacity requirements.  The 2013 Utilities Board approved a $613,710 rebate budget for the RERP, divided between residential and commercial.

Overview of CSU RERP:

  •  $1.50/AC watt rebate – owner will receive 2- 4 weeks after system is commissioned.
  • Residential systems will get a rebate on up to 10kW AC
  • Commercial systems will get a rebate on up to 25kW AC
  • Systems can be larger but rebate will only cover 10kW for res. and 25 kW for com.
  • Once CSU’s rebate budget has been spent there are no more rebates for the rest of that year.
  • DC to AC de-rate is per CSU’s guidelines.  CEC equipment rating, tilt, and orientation are factored.

 

Black Hills Energy: Nearby Solar REC Programs in Pueblo, Colorado

To encourage nearby Pueblo customers to use solar energy as a distributed generation resource, Black Hills Energy Utility offers a production-based incentive program to help cover a portion of the cost of investing in solar photovoltaic systems.  This production-based incentive is based on the amount of solar electricity generated by the system, which is paid by the Utility for the environmental attributes of the electricity produced by the PV system. You will also receive net-metering. Every kWh in excess of your usage is credited to your account.

  • On systems less than 10kW –  $.1267/kWh for the first 5 kW
  • On systems 10kW to 100kW:
    • Tier 1 – 10 to 30 kW – $.16/kW (130.2 kW available)
    • Tier 2 – 30 to 60 kW – $.16/kW  (120 kW available)
    • Tier 3 – 60 to 100 kW – $ .16/kW (100 kW available)

 

There is definitely a lot to consider when planning for a solar electric system, and considering the financials is essential. An important thing to remember is that RERP rebates are offered on a first-come, first-served basis, and funds are limited.  Visit Colorado Springs Utilities for more info on the RERP For financing options, check our PPC Solar websitePPC Solar can calculate actual system needs and production with a free site analysis or no-strings-attached quote over the phone: 877-736-5896

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