Solar Supporters Protest Xcel's Cuts To Rewards Program

DENVER (CBS4)- Hundreds of people gathered on the steps of the state Capitol to protest Xcel Energy's cuts to the solar rewards program on Friday.

Solar supporters believe the utility company is pulling the plug on clean energy jobs. Xcel Energy said it has a responsibility to be fair with all customers.

Customers used to pay 50 percent of the cost for solar installation. The other 50 percent came from incentives and tax rebates. Now, Xcel Energy spokesman Mark Stutz said that subsidy is closer to 75 percent.

"We get less bang for our buck," said Stutz.

The change has come about because the cost of solar has dropped in the past five years. By reducing solar incentives now, Xcel believes its leveling the playing field for all customers.

"If we're paying you significantly more now than when the program started, we're getting less kilowatt hours and we're not spending out customers' money very well," said Stutz.

The money for solar rewards is paid by every Xcel customer, which adds up to an extra two percent on monthly utility bills.

The solar energy industry claims cutting subsidies will wipe out thousands of jobs.

"I literally have dealers this week making decisions going from 50 to five people in the next week," said solar equipment supplier Ben Tackett.

Colorado voters said yes to solar rewards as a way to jump start the clean energy business. In order to attract customers, the industry believes the return on investment needs to be seven years.

"With this change Xcel took, it's going to push the return on investment out ten to 14 years," said solar equipment installer Jim Burness.

Xcel claims there is plenty of solar work to keep companies busy. The company said the last time the industry complained about reduced incentives in 2008, it actually grew 90 percent in the following year.

Colorado's solar energy industry currently employs 5,300 people who work for more than 400 companies.