Xcel Energy - Solar*Rewards Program

Program Xcel Energy - Solar*Rewards Program
Category Financial Incentive
Implementing sector Utility
Last Update
State Minnesota
Administrator Xcel Energy
Website http://www.xcelenergy.com/Energy_Solutions/Residential_Solutions/Renewable_Ener…
Budget $15 million (2018)
Start Date
Technologies Solar Photovoltaics
Sectors Residential

Xcel Energy offers a solar production incentive for systems 20 kW-DC or less through its Solar*Rewards program.

Incentive Amount

The Solar*Rewards program offers an incentive based on the kWh production from the customer's PV system, as recorded by the production meter. The incentive is paid annually at $0.08 per kWh produced over 10 years.

Eligibility

The customer's system capacity may not be more than 120% of the customer's on-site annual energy consumption. Each year for the 5 years of the program (2014-2018), $5 million will be allocated from the Renewable Development Fund for the production incentive. Participating customers must complete program forms and pay a $250 engineering fee; Xcel Energy will begin accepting online payments for the fee on or before January 1, 2017. If, prior to the completion of an engineering review, the application is denied or the customer elects not participate in the program, the customer's application fee will be refunded. 

The same PV project cannot also not a participant in the Made in Minnesota Solar PV Incentive Program coordinated by the Minnesota Department of Commerce.

Participating customers are required to own the PV system and the property/building on which the system will be installed.

Renewable Energy Credits

As a part of the Solar*Rewards contract, the customer agrees to convey all of the Renewable Energy Credits (RECs) or similar green attributes produced by the system to Xcel Energy for the ten-year term of the contract.

Net Metering

Net metering is available for Xcel Energy's customers. Under net metering net excess generation (NEG) at the end of a monthly billing period is generally credited to the next month’s bill. If a customer's NEG balance exceeds $25.00 at the end of a billing period, the customer will be issued a check for the balance by the utility. Net metering takes place using a bi-directional meter for which the customer pays a small monthly fee. The program also requires a generation meter installed at the utility's expense to measure energy (i.e., REC production) by the solar system. 

More Information

Applicants can view the Solar*Rewards Customer Contract at the link above.

History

Xcel has operated a small-solar incentive program called Solar*Rewards since 2010. In 2013, the Minnesota Legislature passed omnibus energy legislation that directed Xcel to operate a small-solar incentive program that provides a production-based incentive for solar energy systems up to 20 kW in size.

According to its compliance report, Xcel allocated $4.6 million for 363 solar PV projects for a projected capacity of 4.86 MW in 2014. 

 

 

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