It is a unique time for the solar industry here in Colorado. The utility rebates offered by Xcel, Black Hills, and other local energy companies remain among the best in the nation. All the while, the price of solar modules has drastically dropped - due to a large surplus from lower demand in the European markets.

The last time we had news that favored the solar energy consumer here in Colorado was October of last year. That was when it was announced that the Federal Tax Credit for solar energy had been increased to 30% with no cap on the amount you could be credited. This resulted in Xcel suddenly announcing that they were reducing their solar rebate from $4.50 to $3.50 per watt, a reduction of 22%. Xcel Energy reserves the right the reduce the amount of the rebate at ANY time.

With these lower materials cost and fierce cost competition in the local solar industry, solar energy is the cheapest it has ever been here in Colorado - even with the rebate at $3.50 per watt. Due to this new situation, we predict that Xcel will soon move to further reduce the rebate in an effort, much like last October, to level the cost of solar and keep demand at a manageable level.

This reduction could come next week, it could come in several months. The fact remains that these next 2 - 3 months may prove to be the best time ever to invest in solar for your Colorado Home or Business. To reiterate...

1) Solar module prices (the bulk of the cost of a system) have drastically decreased over the past 9 months. However, the past two months has seen prices level out as European demand for solar slowly bounces back.

2) Xcel (for the time being) has held their rebates at $3.50 per watt and Black Hills (Southern Colorado) remains at $4.50 per watt, making them the #1 utility rebate in the US. These rebates will be reduced, it's only a matter of when.

3) Colorado electricity rates have risen faster than any state over the past decade. Xcel has issued rate increases at least once every year since 2002 - making Colorado their #1 revenue source.

4) Colorado is meeting its Renewable Portfolio Standards faster than anticipated - meaning any rebate for solar (especially residential) may not be around for much longer.

The Colorado solar energy market continues to grow, despite the current economic recession. Colorado is on pace to break last year's record of systems sold for both residential and commercial applications - as this industry contiunes to reward solar pioneers with rebates and credits.

Solar and renewable energies will continue to be a driving force in Colorado's economy for decades to come. But for the consumer, solar energy may never be more economical than it is now.