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Go Solar in 2020
Residential Solar Rebate Program
Fort Collins Utilities supports customers generating their own renewable energy using solar photovoltaic (PV) panels. The Solar Rebate Program provides incentives and guidance to help make sure each project is a success.
Applications are now being accepted for the 2020 Residential Solar Rebate Program. Approximately $490,000 is available for roughly 326 residential solar projects. Rebate amounts may be adjusted based on program participation to ensure funds remain available throughout the year.
Participating Solar Contractor Network Launches in Fort Collins
Beginning June 10, 2019, residential solar rebates will only be available for customers who work with participating solar contractors for purchase, design and installation of their solar PV system.
Residential customers can receive rebates up to $1,500. Rebate amounts are calculated based on $0.50/Watt of DC system generation capacity and include a 20-year Renewable Energy Credit (REC) assignment to Fort Collins Utilities. See Eligibility Requirements below for more details.
- Must be a Fort Collins Utilities electric customer
- Solar PV Systems must be sold, designed and installed by a Participating Solar Contractor (effective June 10, 2019)
- PV system must be sized greater than 500 watts and less than the capacity to provide 120 percent of average annual energy use over the previous 24 months.
- Systems must meet Utilities Interconnection Standards (PDF 353KB).
- Equipment must be new and UL listed and named on the eligible equipment list.
- The system cannot be shaded between 9 a.m.-3 p.m. If questionable, the applicant must submit shading analysis (check with your solar contractor).
- Customer agrees to manage trees and other potential shading sources to prevent shading from 9 a.m. - 3 p.m.
- System orientation must achieve a minimum of 90 percent of estimated ideal annual output for full rebate allowance.
- The system must be installed within six months of the rebate reservation letter.
- Customers with homes built before 2005 must obtain an Efficiency Works' Home Audit, or provide documentation of a recent audit by a certified energy auditor within six months of receipt of the rebate reservation letter in order to receive the rebate. For newer homes, audits are optional.
Solar Rebate Application
- Solar Contractors submit the Distributed Energy Interconnection Application, along with supporting documents as outlined in the application.
- The customer must review and acknowledge Fort Collins Utilities' interconnection and policies on page 4 of the application.
Tax Credits for Solar Investments
Solar electric systems (including battery storage charged by solar) are currently eligible for a 26% federal tax credit if placed in service before January 2021. The federal tax credit declines at 4 percent per year before expiring at the close of 2022.
Customers may file IRS Form 5695 Residential Energy Credit for costs in the most recent calendar year related to solar PV installation, including batteries charged by the solar PV array. No forms or information is required from Fort Collins Utilities to complete this filing. Carryover costs from the prior year are also documented using this form.
When you generate solar power, any energy you don't use immediately flows back into the electric grid. Fort Collins Utilities pays for the energy returned to the grid through net metering credits on your monthly utility bill (see infographic) based on the current residential rates. Residential energy rates and billing changed to Time-of-Day pricing in 2018, which applies to both energy purchases and credits for energy returned to the grid. See the table of credit rates under the heading 'TOD Pricing - Solar Customers.'
Accumulated bill credits can roll forward to the next month. There is no banking of solar energy without battery storage at your home.
Is Rooftop Solar a Fit for My House?
Google's Project Sunroof is a free tool to assess your roof's solar potential. Does your roof or installation site have uninterrupted sun from 9 a.m.-3 p.m.? Savings suggested by Project Sunroof are likely inaccurate because the method is not disclosed and not tied to current Fort Collins Utilities rates. Seek specific savings analysis from a Participating Solar Contractor to determine if solar is a fit for your home.
Consider also the age and condition of your roof. Removing a solar PV system to replace a roof can be expensive, so it is recommended to replace or upgrade an old roof before installing a solar system.
Your own personalized solar savings estimator, powered by Google Earth imagery.
Start with a Home Efficiency Audit from Efficiency Works. For homes built prior to 2005, an energy efficiency audit is required to be eligible for a residential solar rebate. An audit will provide a full assessment of your home's efficiency level and recommendations to improve it, including costs of different measures. Investing in efficiency can provide less expensive improvements and better financial returns than purchasing solar generation to offset energy bills.
Sizing Your Solar PV System
Solar PV system designers often choose a system size to meet a certain percentage of a household's annual energy consumption. Though a solar PV system provides a portion of the energy your household consumes over the course of a year, it will sometimes produce more than needed and will produce less than needed at other times (nighttime or cloudy days). Your home will stay connected to the Fort Collins Utilities electric grid so you have reliable electricity during these fluctuations. How you select the right size for your solar PV system will be a balance of your priorities:
- Total cost budget, monthly payments and cash flow
- Goals for offsetting energy from the grid
- Available sunny space on your roof or property
Solar PV system size is limited to producing no more than 120 percent of your average annual energy load (based on a 24-month period). If your home is new or you recently moved in, Fort Collins Utilities can provide a solar system size analysis based on other estimation methods. Contact Fort Collins Utilities to access your energy consumption history. You can choose to share this information with solar contractors, but Fort Collins Utilities will not share your consumption information without your consent.
To compare proposals from different vendors, consider that the different proposed designs may be different sizes and could be designed for different system lifespans. To compensate for these variables, compare the system costs in dollars ($), as well as the cost per kilowatt (kW) (divide the total cost by the size in DC-kW to get $/kW). Finally, the SEIA Solar Pricing Disclosure forms provided by your contractor will also show a cost per kW-hour ($/kWh), considering the system cost and the amount of energy the system is expected to generate over its lifespan.
The Process of Installing Solar PV
- Educate yourself!
- Contact two or more solar contractors for project estimates
- Select a contractor and sign a contract
- Solar contractor applies for rebates and permits; customer must review and sign the application
- Solar contractor installs your solar PV system
- City of Fort Collins Building Services inspects for electrical code compliance
- Fort Collins Utilities inspects equipment and tests functionality; solar PV system is turned on
- Permission to Operate letter is sent to you
- Generate solar power and earn credits
Fort Collins Utilities' recommends working with the members of the Participating Solar Contractor Network listed below. Contractors in the Network have committed to conduct their business according to a code of ethics and the Solar Energy Industries Association Solar Business Code.
Beginning June 10, 2019, Residential Solar Rebates are only available to customers who work with active Participating Solar Contractors through purchasing, design and installation of their solar PV system. Customers are encouraged to solicit competitive bids from two or more contractors.
This list is updated periodically as contractors join or leave the network. Consult the Better Business Bureau and social media sites for additional consumer feedback.
The Participating Solar Contractor Network and listed resources are intended as a starting point for customers who do not have a prior relationship with a service provider or vendor. No warranty regarding the accuracy of the information, experience, quality of service, licensure, or proof of insurance or bonding is implied by listing a contractor in the Network. Under the City of Fort Collins Charter, Municipal Code, and City Manager’s Policies, the City is unable to recommend or endorse any individual contractor, without regard to those listed in the Network.
What You Need to Know about Solar in Fort Collins
Review this simple Solar Fact Sheet to understand how adding a solar PV system would affect your Fort Collins Utilities energy bill. Customers with solar PV systems will not have electric power during a distribution grid outage affecting their service transformer. Customers may install a battery storage system designed to isolate from the grid during an outage to serve the home’s energy loads.
A Participating Solar Contractor will provide a copy of this Fact Sheet with their solar PV proposal.
Energy Savings with Solar PV
When you generate solar power, this solar energy reduces or replaces the energy you would otherwise purchase from Fort Collins Utilities. When your solar array produces more than you need, that energy immediately flows back into the electric grid. You are credited for net energy returned to the grid based on the residential net metering energy rate in effect at that time. These net metering credits are added to your monthly utility bill, reducing the total amount due from energy and other charges for water, wastewater and stormwater.
What's the Payback On a Solar Investment?
By generating your own solar energy, you will reduce the energy consumed from the Fort Collins Utilities grid. The amount of energy you generate and the monthly bill impacts will vary throughout the year, with the greatest energy production near the summer solstice, and the lowest energy production near the winter solstice. Fort Collins Utilities and solar contractors use sophisticated computer models to estimate how much energy a model solar PV system can generate based on its location, local weather, the orientation of the array or multiple arrays, and other equipment specifications. To estimate the financial return of an investment in solar PV, these models also incorporate electric utility rates, and assumptions about how those rates may change over time, financing rates, and degradation in the efficiency of the solar array production.
Ask solar contractors for analysis of the financial benefits with their proposal.
Additional Research Resources
- Federal Energy Tax Credits – Tax credit information (See IRS Forms 5695 & 3468)
- Colorado Solar Energy Industries Assoc. – Nonprofit solar association
- Energy Saver (Department of Energy) – Home energy efficiency and solar electric info.
- Solar Consumer Protection (IREC) – Information resources for solar consumers
- Solar Customer Resource Portal (SEIA) – Information resources and smart consumer checklist
- DSIRE – National Solar Database of programs and incentives
- SunShot – US Dept. of Energy solar initiative