On Tuesday, Xcel announced that they are planning to reduce the solar energy rebates by $0.50 in the next month or two, and they want to reduce their portion of the rebate to $0.05 by 2014. The Solar Rewards program currently provides residential and commercial solar systems with a $3.50 per watt rebate. This consists of a $2 rebate that is required by the state, as well as a Renewable Energy Credit (REC) that can amount to up to $1.50 per watt, depending on the optimization of the system. The REC is what Xcel is hoping to reduce.

Xcel is planning to make this reduction after the next round of Solar Rewards reaches 500 kilowatts, which is projected to be by the end of October or by the year’s end. Before any changes can be made, this plan must be approved by the Colorado Public Utilities Commission. Currently, Gov. Bill Ritter and CoSEIA (Colorado Solar Energy Industry Association) are in full support of the proposal and Xcel. They have made substantial efforts to fulfill the requirements for utility companies to get 20% of their energy from renewable sources by 2020.

The solar power rebates are continuing to drop, which means the time to act, is now. With the other discounts Astralux offers, solar power on your home or business is very affordable, but there is very little time to waist.

More information on Xcel’s proposal can be found at http://denver.bizjournals.com/denver/stories/2009/10/26/daily29.html