Ruling will encourage more distributed renewable energy installations
FRISCO — The Colorado Public Utilities Commission this week rejected an attempt by Xcel Energy to roll back net net metering, a key financial incentive that has helped spur widespread installation of rooftop solar systems in the state.
FRISCO — A grassroots Colorado coalition of government leaders, business and environmental organizations want to increase the production of solar power tenfold in the next 15 years, but the effort faces a major challenge, as Xcel Energy wants to cut the rate it pays to consumers who feed power into the grid.
Renewable energy advocates said the utility’s arguement is flawed: A comprehensive study done by Crossborder Energy found that far from being a subsidy, net metering contributes up to $11 million in benefits each year to the grid. The debate over net metering is currently before the PUC as part of Xcel’s 2014 Renewable Energy Standard Compliance Plan.
Net metering requires investor-owned utilities to credit customers who invest in solar panels for the excess electricity they supply the electrical grid at the retail rate. Net metering is fundamental to the viability of rooftop solar for both homes and businesses.