Xcel Energy To Lower Solar REC Rates.
Posted by Spencer Garner on Mon, Dec 20, 2010 @ 04:25 AM
What is a REC (Renewable Energy Credit)?
RECs are not to be confused with carbon credits. Carbon credits are something completely different.
RECs are in fact a `credit` for the amount of clean solar energy that solar panels produce. Utilities in some states need certain amounts of these credits in order to comply with the state mandated and regulated Renewable Portfolio Standards (RPS). Utilities can earn these credits by building mega watt solar arrays or buying the RECs from individuals or businesses in the private sector that have installed solar energy systems for their properties.
So how much are the RECs your solar panels produce worth?
It depends largely on your state and the utility. Also the laws that have been passed in regards to the RPS (Renewable Portfolio Standards), and how much the REC is worth on your local REC market. The REC market is similar to a stock market. Supply and demand are high factors when determining the price.
As of 12-17-2010, when you sign a contract with Xcel Energy you will be guaranteed a set price for your RECs for 20 years after the commission date of your solar system.
These rates are going down!
on 12-7-2010 the rates for systems with sized ranging from 10kw to 100kw when down from .035¢ to .025¢ per kwh produced.
The next drop in REC rates is coming very soon!
This will effect tier 2; solar systems with sizes ranging from 100.1kw to 500kw. The RECs will be lowered from .035¢ to .025¢ per kwh produced.
The below charts are from
Xcel Energy's website.
| Medium -- Tier 1 (10-100 kW) |
Price per
MWh generated |
|
Date Step Began |
| $115.00 |
|
starting price |
| $100.00 |
|
12/14/09 |
| $80.00 |
|
1/8/10 |
| $65.00 |
|
2/2/10 |
| $55.00 |
|
3/25/10 |
| $45.00 |
|
5/12/10 |
| $35.00 |
|
9/24/10 |
| $25.00 |
|
12/7/10 |
| Medium -- Tier 2 (100.1-500 kW) |
Price per
MWh generated |
|
Date Step Began |
| $125.00 |
|
starting price |
| $115.00 |
|
11/11/09 |
| $100.00 |
|
11/24/09 |
| $80.00 |
|
1/25/10 |
| $65.00 |
|
2/18/10 |
| $55.00 |
|
4/6/10 |
| $45.00 |
|
10/13/10 |
| $35.00 |
|
10/19/10 |
What does this mean for you?
For Example:
Let's say your on the fence about making a decision on investing in solar for your business.
The proposed solar system size is 103kw.
At the current rates, your Solar System will earn you an average of $7,300.00 per year for 20 years.
That's a total of $146,000.00 of additional revenue.
When the rates drop, your 103kw system will only earn an average of $6,500.00 per year.
For a total of $131,400.00. That's $14,600.00 of lost revenue.
| The Time To Act Is Now, Before Time Runs Out! |
 |
Don't Delay And Have This Next Rate Drop Effect Your
Revenue Stream. |
|
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