From June 1st to September 31st, electricity for Colorado homes will cost up to $0.15 per kilowatt-hour (kWh). Traditionally this year, electricity from Xcel Energy in Colorado has run around $0.105 per kWh.

With the new two tiered rate system just released by Xcel, every kilowatt-hour (kWh) of electricity above 500 used by a residential home in a given month will be subject to this much higher fee. The average household electricity consumption in Colorado is around 700kWh per month - which means the average family would pay the 2nd-tier rate on about 200kWh of their usage.

Here's a simple breakdown

Traditional Rate System:

700kWh (Usage) x $0.105 (Avg. Electricity Rate) = $73.50

New 2-Tier Rate System:

Tier 1 - 500kWh (Usage) x $0.10 (Avg. Tier 1 Rate) = $50.00
Tier 2 - 200kWh (Usage) x $0.15 (Avg. Tier 2 Rate) = $30.00
Total = $80.00 ($0.115 per kWh)

This would represent a 9% increase. For bigger users of electricity, this new tier will represent a significant increase in their summer electricity bill.

Fortunately you have a remedy - solar energy! Solar is producing best during these summer months, and can drive your usage into the lower tier or eliminate it altogether.

Solar just got more valuable in Colorado.

(Alamosa, CO – May 21, 2010) – Astralux Power Systems, a leading solar energy integrator in Colorado, has finished a 19.74 kilowatt (kW) solar energy system installation on the Crouse Organic Farm in Alamosa, Colorado. This project was partially funded through the Colorado Government Energy Office’s (GEO) New Energy Economy Development (NEED) grant program. The Crouse solar project was one of 17 projects to be funded out of over 200 applicants. The NEED grant program was created with funds from the American Recovery and Reinvestment Act (ARRA).

The Crouse Farm solar project is an integral step towards transitioning into a “green farm of the future”. This certified organic farm is currently producing 500-600 tons of alfalfa hay annually. The electricity produced by the solar energy system will offset an estimated 55% of the 64,000 kilowatt-hours (kWh) of electricity needed to irrigate the farm’s crops. The system will also prevent approximately 24,000 pounds of coal from being burned annually. Located in Alamosa, the Crouse farm will provide Southern Colorado with a model for a sustainable and energy efficient farm. This project will also showcase solar energy in an area of Colorado lacking in renewable energy installations, as this will only be the second grid-tied solar energy system in the San Luis Valley Rural Electric Cooperative service area.

“We strongly believe transitioning our farm to renewable energy, in this case solar power, is a win-win scenario for both the farmer and the environment”, said Ken Crouse, owner and operator. “This project, along with our current transition into certified organic crops, will significantly reduce our carbon footprint. Furthermore, we believe this transition will ultimately provide Southern Colorado with a GREEN model farm of the future. We intend to arrange field trips with local schools to our farm, thus enriching the minds of our youth and helping to create a sustainable road map for the future farmers of America.”

“We believe projects like this are at the essence of the Recharge Colorado initiative,” said Jesse Malcomb, Vice President of Business Development for Astralux. “This solar energy system helps increase our state’s energy independence while allowing this farm to continue producing an important crop for the local economy.”

About Astralux
Astralux, established in 1992, is a Boulder, Colorado-based solar energy integration firm and was originally founded to research and develop silicon and semiconductor materials and devices. Leveraging its extensive R&D in advanced solar energy technologies, Astralux created the Power Systems group which has developed proprietary engineering, design, rendering, and installation solutions for the solar energy integration industry. This technical expertise allows Astralux to offer the exclusive SolarCare™ protection plan, providing the longest and most comprehensive labor warranty and performance guarantee in the industry. Since 2007, Astralux Power Systems is fastest growing solar energy integrator in Colorado.

One Fort Collins community is taking full advantage of the substantial group discounts offered by the Astralux Energy Partners Program. Thus far 8 households in this neighborhood have committed to going solar.

Client services representative Osea Nelson helped build this group of solar enthusiasts. "It's great to see entire communities going solar - we are able to give sizable discounts when we can install several solar systems in one area," Osea commented, "you see an almost viral mentality - when one home installs a system, others in the neighborhood start to get interested and want to learn more about solar - even if they haven't considered it before."

Other solar energy group purchasing programs are offered by 3rd party companies who charge installers for collecting these groups, which means extra costs to cover their fees. Astralux Solar offers the Energy Partners Program directly, so solar customers know they are getting a true discount for gathering their community together to go green.

Astralux now has Energy Partners Groups in over a dozen Colorado communities including Lakewood, Boulder, Stapleton, Pueblo, Alamosa, and Denver.

Some solar energy integrators are offering kVAR units with their systems. These companies claim that this unit increases the value of the system - saving you up to 20% or more on your electricity bill than a solar energy system alone.

But do these units really save you money?

Who better than the EPA's Energy Star program to address this issue.

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Do Power Factor Correction Devices (sometimes called Amp Reduction Units or kVAR Units) really save money? Can they earn the ENERGY STAR label?

ENERGY STAR does not qualify any Power Factor Correction Devices. Please send us an email at logomisuse@energystar.gov if you see one that claims to be ENERGY STAR certified.

Power Factor Correction Devices claim to reduce residential energy bills and to prolong the productive life cycles of motors and appliances by reducing the reactive power (kVAR) that is needed from the electric utility.

We have not seen any data that proves these types of products for residential use accomplish what they claim. Power factor correction devices improve power quality but do not generally improve energy efficiency (meaning they won't reduce your energy bill). There are several reasons why their energy efficiency claims could be exaggerated. First, residential customers are not charged for KVA-hour usage, but by kilowatt-hour usage. This means that any savings in energy demand will not directly result in lowering a residential user's utility bill. Second, the only potential for real power savings would occur if the product were only put in the circuit while a reactive load (such as a motor) were running, and taken out of the circuit when the motor is not running. This is impractical, given that there are several motors in a typical home that can come on at any time (refrigerator, air conditioner, HVAC blower, vacuum cleaner, etc.), but the unit itself is intended for permanent, unattended connection near the house breaker panel.

For commercial facilities, power factor correction will rarely be cost-effective based on energy savings alone. The bulk of cost savings power factor correction can offer is in the form of avoided utility charges for low power factor. Energy savings are usually below 1% and always below 3% of load, the higher percentage occurring where motors are a large fraction of the overall load of a facility. Energy savings alone do not make an installation cost effective.

Power factor correction devices are NOT eligible for a federal tax credit.
[Source: Energy Star - http://bit.ly/cN2F3S ]
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And here are some other articles addressing the kVAR issue:

(1) From Eco Factory - "Skeptics who have tested the KVAR units for energy savings found that it had no effect on the speed of the meter"
http://www.ecofactory.com/news/are-kvar-units-scam-091809

(2) From NIST - "Specialists at the National Institute of Standards and Technology (NIST) have recently explained why the devices actually provide no savings by discussing the underlying physics"
http://www.nist.gov/eeel/quantum/power_121509.cfm

The Verdict: You can decide for yourself, but there seems to be overwheming evidence from very legitimate sources that kVAR units may not be all they are cracked up to be.

From the GEO Website:

"Coloradans can soon tap into millions of Recovery Act dollars and take steps to save money, boost the economy and save energy as the Governor's Energy Office and partners prepare to launch a sweeping, statewide rebate program April 19. This initiative is designed to bring energy efficiency and renewable energy to tens of thousands of Coloradans and will provide nearly 75,000 rebates worth approximately $22 million."

For 2010, the Colorado GEO solar rebate is set at $1.50 per watt (up to 3kW for residential and 10kW for commercial projects). Several rural and co-op electric utilities in Colorado are offering matching funds to the GEO rebate, bringing the overall solar rebate up to $3 per watt. This is more than the current Xcel Energy and Black Hills Energy solar rebate of $2.55 per watt in Colorado.

Astralux has special GEO 3kW solar packages for Residential and 10kW packages for Small Business projects. These packages come with a free energy audit of your home or business.

Funds for the GEO solar rebate are first-come, first-serve.

http://www.astraluxsolar.com/Astralux_GEO_Solar_Package.pdf