Colorado has made solar a reality! Thank goodness! Energy rates in Colorado have averaged a 9% increase over the last 12 years. In 2004, Colorado was the first state in the US to pass legislation that required solar to be a certain portion of the energy usage of the state. Currently 4% of Colorado’s energy must come from solar, and unlike other states, the emphasis is on residential, instead of solar farms.

Because of net metering legislation, Colorado is one of the few states that allows residents to sell excess energy back to the utility. Now, the truth is, net metering in Colorado is still a joke, and you are paid pennies on the dollar, but you are able to defer the refund and apply it to any remaining utility bill would have, which makes it closer to a one to one return.

Financing programs make solar a real option! Solar is the future, no doubt about it, and the number one reason more folks don’t go solar is the upfront price. Fortunately, Colorado makes it easy with Municipal financing. PACE (Property Assessed Clean Energy) allows your upfront cost to be wiped out with a tax assessment applied over the next 20 years to the property. PACE is awesome, because your home, not the individual, retains the savings and gives you the flexibility to switch responsibility over to a new buyer if you ever sell your home.

Residential Solar Incentives

Your exact solar rebate depends on which utility company you have. The largest is Xcel which offers a $2/watt which is pretty darn good!

The great thing about installing solar in Colorado, in addition to the rebate, the utilities are required to compensate you in advance for the “credits” your clean energy solar system produces. The credit is equivalent to the amount of energy your solar panels produce. In Colorado, Utilities are required to off set the “brown” or dirty energy in the form of “clean energy credits” which will result in you received .60-$1.00/watt extra. Colorado’s solar installs are booming because of this almost $3/watt subsidy!

Further, the Governor’s Energy Office (GEO) in Colorado will match grants for municipalities to provide additional solar pv installation incentives. If you are not part of of the two investor owned utilities, this will impact you the most! A home energy audit is required, and incentives around $5,000 typically.

If you end up installing a solar thermal, hot water heating system, Colorado has rebates for that as well, up to $3,000! Xcel and Aquila both offer additional solar thermal installation rebates of up to $4.50/ watt.

Colorado Solar Installation Cost Estimates

So what do all these rebates and incentives mean? If you have a $150 utility bill with Xcel utility company, installing a 4,000 watt, 4kW solar system in 2010 will cost around $22,000-$32,000 before any incentives are applied. If you estimate paying $5-8 a watt, take the high end, $8 x 4000watts (4Kw)= $32,000, subtract the $3 /watt in rebates and credits multiplied by 4 kW ($12,000) and an additional $6,000 from the federal government (after the state rebate has been assessed) 30% of $20,000, and your Colorado solar system on the high end comes in around $14,000 without any financing! An investment that will pay for itself in 5-10 years.

Solar Licensing in Colorado

All contractors and electricians must be registered or licensed by the State Electrical Board.

NEIS – National Electrical Installation Standards

Although PV Solar Electric Installers are not regulated in Colorado, some stakeholders argue that PV electric system installation falls under the electricians scope of practice. Thus, these stakeholders see no need for new regulation. In order to understand the relationship between PV solar electric system installation and the work of licensed electricians, a summary of the licensing requirements and the scope of practice of licensed electricians in Colorado follows.

Electricians are regulated by the State Electrical Board (Board). The Board is made up of nine members consisting of two electrical contractors who have master’s licenses; two master or journeyman electricians who are not electrical contractors; two representatives of private, municipal, or cooperative electrical utilities rendering electric service to the public; one building official from a political subdivision of the state that performs electrical inspections; one general contractor from the building industry; and one public member. The Board is located in the Colorado Department of Regulatory Agencies, Division of Registrations.

Colorado is tied with New Jersey as the most solar friendly state! It interesting to note, that in Colorado, Photovoltaic Solar Installations are not regulated or require a specific license. Most licensed solar installers are certified electricians. There are a ton of solar companies in Colorado, and this competition is one of the reasons why you can get a great deal! The city of Aspen may be the most solar friendly community in the nation www.aspencore.org offering additional rebates up to $6,000! Aspen’s rebates vary annually based on budget, but anywhere in Colorado is a great place to install solar, but you already knew that!

DON’T INSTALL SOLAR IN COLORADO WITHOUT READING THIS FIRST!

I know it’s long, but if you are considering solar in Colorado, these are 14 MISTAKES to be aware of:

You see panels on roofs all around town, and are thinking is solar right for me? The answer could be YES! But for many it is NO!

Look, of course, I want you to be “green” and protect the environment, but if you don’t have $10,000- $50,000 or qualify for financing, a Colorado Solar Installation may not be for you. Solar energy in Colorado makes sense when you own a home that gets good sun, have a utility bill over $100, and understand that solar is an investment. Local, state, and federal government rebates, incentives and tax credits subsidize the cost, but the bottom line comes to an upfront, out of pocket investment that will take 5 to 10 years to payback, (unless you finance), but after you break even, as much as 30 years of free energy is yours.

You can save upwards of $5,000 when installing solar as part of a group of just 3 or more home owners who leverage their buying power. Each additional participant, # 2 to 10 will bring the group an additional $250-$750 per member savings when compared to an identical system purchased individually without the volume of a group. Most group buy participants will save at $2,500- $5,000. However, the price of the solar installation is only part of a successful installation.

How much you save depends on your location, the size of the company and a whole host of other factors, but most companies paid installation margins anywhere from 10-25% in consumer to company direct installations. Solar purchased and coops made as a group have proven that contractors will sink to a 5-10% margin to win multiple jobs.

Be aware, not every company will offer financing to a group buy participant. Homes that require additional roof work, ground mount, etc. will incur additional fees individually; the price per kW is the common denominator between you and your coop. Some timing flexibility is often requested by the contractor. There is never an obligation and you can leave the group at anytime.

Each collective of group buy participants schedules its own meetings, conference calls, and communicates via email and Facebook directly. Deciding to install as part of a group or independently is the last step in making sure your solar install is optimal- the first step is RESEARCH solar and ways to save!

#1) Cost Effective System Size. The majority of utility companies have tiered rates. The more you use, the more you pay, so if the cost of a 2kW solar system is close to half the cost of a 4kW system, and with 2kW you eliminate your usage from the most expensive tier, a system 1/2 the size, may reduce your utility bill by over 75%. On the flip side, shooting too low can cost tens of thousands of dollars in missed savings and installing too large of a systems (often ethically questioned upsells by sales people), results in the utility buying back excess energy at less than 25 cents on the dollar making you wish you got a smaller system…

#2) Watch for Old, Outdated Solar Panels. The majority of the cost of installing solar in Colorado is in the panels, not all panels are created equal! In the last 5 years, panel technology has evolved dramatically and is part of the reason solar installations are on the rise. All solar installers have relationships with distributors/manufacturers/wholesales like Sunpower, BP, Sanyo, etc etc and often have surplus product, when the product is on the shelf, the situation is similar to selecting milk or eggs at the grocery store–double check the panels for freshness! This is becoming a big problem, because some installers purchased excess panels that have been lying around, and are now worth less on the market than the factory direct discount pricing they originally received from the manufacturer. Panels manufactured in 2010 are almost twice as efficient, have the potential to last longer

#3) Internet Purchase Mistakes. If you choose to Do It Yourself, or want to cut costs by buying panels or materials over the internet, be very careful!!! Consult with an electrician or the installer prior to making any purchases. Panels on the web are cheap, good deals can be had, but the MAJORITY are too good to be true. And if you are curious about any of those make your own panels, or DIY kits, contact me and save some cash and I’ll share with you, free. The reality is that 99% of the population never succeeds in making a single watt of usable energy from DIY panel kits. Remember shipping solar panels to Colorado can also involve additional state tax, and should you need to return the item, shipping ain’t cheap…

#4) Missing Warranty. Colorado solar companies should provide 3 warranties: service, maintenance, and manufacturers. Double check that the individual installing the panels (not just the company) is properly certified, some warranties are void if the installer was not properly licensed. Solar is not cheap, and for a minimum one year, the company should make visits to the system and make sure it is performing at maximum efficiency. What happens if the company underestimated the amount of panels necessary, will they ad another panel at cost/free? Will they come and show you how to clean the panels the first time? What if the installation causes your roof to leak? Now what? Who’s responsible and for how long? What about shipping costs of defective merchandise? The labor of removing/reinstalling panels? Will your call be answered in 2 years, 20 years? Manufacturers guarantee the panels for a 20-30+ years, but what exactly do they guarantee? Are their additional warranties you can buy? Ask these questions before you install! If you talk to one of our experts, we’ll help you look for points in your agreement that most consumers are unaware of, such as sagging panels with insufficient space between the roof and the mount that may cause a shortened lifespan and over heat the panels.

#5) You Need Sunlight. You need the sun for solar, but you don’t get enough sun, but you really want solar… Colorado solar conditions vary, depending on where in the state you live. Technology has made it possible to predict the output of solar panels with 95% accuracy using your specific homes roof, the amount of sun, fog, and other natural elements play a role. Wind energy, double pained windows, insulation, hot water heaters, new appliances, weatherization, and basic tips around the home may be better alternatives. An honest, reputable company will alert you to how much energy you can anticipate to generate in not optimal. Unfortunately, far too common consumers have systems installed that offset substantially less energy that anticipated; trees, fog, shading, roof orientation are the main causes. Consider non traditional ground or tower mounts, new windows, wall insulation, wind power, efficient appliances, better light bulbs, more efficiency water heating as options… There are so many solar installers in Colorado because most homes have perfect solar conditions.

#6) Missed Rebate, Tax and Incentives Deadlines: It is YOUR responsibility to be aware of all Colorado solar incentives you qualify for. The installer will help you and is knowledgeable in most cases, but identifying the different, local, municipal, state and federal opportunities to save, and the deadlines associates with each is your job ultimately. Certain incentives are time sensitive and tied to total installs in Colorado during the year, so time is of the essence. Millions in solar incentives are not claimed every year.

#7) Maximize the Benefit of a Site Survey! Your free estimate is not free to the company, respect the installers time and effort and be prepared with everything required for an ACCURATE estimate including utility bills, survey of your major appliances, explanations for any seasonal shifts in usage, kids going to college, etc. Knowing the ballpark market price range of your solar system will allow you to concentrate your assessment of each contractor on quality.

#8) Check the License or have Nightmares!!! If the contractor does not volunteer their license # you should be on Alert! If their marketing materials, business cards don’t feature it, ask why? It is a mandate in many states to visibly display a license # and id. A license typically indicates proper bond, insurance, free of any liens, bankruptcies, or judgment. Research the contractor on the state website, DO NOT TRUST any third party to do this for you. If an unlicensed, uninsured installer falls off YOUR roof YOU may be liable for any injuries!

#9 ) Call References!!! So important… I can’t tell you how many times I’ve been surprised… Ask for 5 references, if the contractor balks, you should be on alert. Ask the provided references what would they do different if installing solar again? Don’t be shy to ask price details; past solar installation data affirms the Solar Sipper group buy program is responsible for significant savings. We have spoken to many consumers who are dissatisfied with a contractor–don’t skip over this task!

#10) Have your Expectation Documented on Paper: Documentation! Documentation! Documentation! A power survey conducted on a day with good sun and few clouds should evidence the amount of energy the specific system will produce when the sun is striking perpendicular to the panel. Should the sun strike at an angle less than perpendicular to the panel surface, then energy output is downgraded by the cosine of the angle between the sunlight and the perpendicular to the panel face. Estimates you receive must highlight the peak generating capacity and the result of this calculation for the solar system under good sun conditions in terms kW produced. Be sure to obtain the amount of energy a system will produce on an annual basis in kW hours. Energy produced directly correlates to sunlight received and should make room for seasonal variations, any annual output hypothesis should come with at least a 10% +/-. You better make sure this is written down for each estimate you receive… an estimate on faulty numbers is not much of an estimate at all and you will be sorry

#11) Hidden Costs: Sales tax? Who pays the permit fee? Warranty insurance? What about the fees to connect to the grid? We have recently been hearing more and more “last minute” charge stories… be careful, especially in group buys where the margins are ultra slim.

#12) COMPETITION Equals Savings! Group buys that are offered EXCLUSIVE to one company only, and you don’t get to choose the contractor still end up saving most consumers money vs. installing without the benefit of group purchase power, however, because there is no direct competition between companies for your specific install, exclusive groups are paid an organizing fee for wrangling the herd, and true market forces are not in the homeowners favor. Consumers save when multiple companies compete for their business. By connecting directly with other HOMEOWNERS first, (not companies), and searching for an installer together- the entire market will be able to compete for your business and residential solar installation is at its cheapest. Connect with other homeowners to form a group buy.

#13) Know what to Expect: The Colorado solar company you chose will begin by finding your roofs anchor beams, and connect “stand-off” posts that will be attached to racking where the solar panels will rest. There are new mounting techniques that don’t require penetration to the roofs anchor or support beams, but most solar installers will connect to stable roof beams and use sealants and flashings to prevent water damage. Once the panels are secured, they are wired together and the wiring is secured and passed down to the inverter. Your system design should take into account where the inverter will be mounted; most are by the utility meter, or in a garage. Efficient wiring is important, you will lose DC power if your wiring weaves around your house and roof before it reaches the inverter. Most solar installs take 1-2 days.

#14) Tax advice: Recently their have been reports of Colorado Solar companies manipulating the Federal Tax Incentive to reflect the 30% deduction from the gross sum. As we interpret the statute, your actual deduction should be from the net total after state and local incentives have been applied. Carrying over a larger than reality deduction to your taxes could pose a problem, please see a professional for all tax related matters.

Getting a great deal on solar in Colorado is easy! Get multiple estimates, there are individuals forming coop group buys every week. When you are able to determine the market price for the SAME size system and panels, you have a benchmark from where to assess quality and price. When solar companies compete–you save. Make your intent to install solar known to the contractor; it sounds obvious, but if the company knows you’re serious, it will fight for your business.

The web is full of great info on solar, but their sure is a lot of it and not all of it is accurate or up to date, we are here to personally help YOU- we have helped 750 home owners go solar in 2009 and want to double that in 2010! Please use our free zip-code search directory to contact a contractor, connect to a group buy, or contact us if you have any questions or need a referral 866-491-8524 100% FREE.

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