Xcel Energy’s Solar Rewards program is returning in 2023. However, there are significant changes compared to previous years.
The solar rewards program from Xcel Energy will be coming back. Despite its popularity over the past few years, funding for the program has decreased from $10 million to $5 million.
Due to the decreased funding, applying early is essential, as the program uses a first come, first serve basis. Once funding is fully allocated, applicants are put on a waitlist which is cleared at the end of the year. In 2022, with a budget of $10 million, funds were exhausted by the end of May and in 2021 the money was allocated as early as April. It is expected funds may follow a similar pattern this year.
In addition to the decreased funds for the program, commercial properties will no longer be accepted for this program unless they meet income-qualified specifications. However, other options, such as MinnPACE, are available for commercial properties.
Residential properties can receive performance-based incentives of $0.02 per kWh for ten years. Income-qualified residential properties will receive the same performance-based incentive but also could collect an upfront incentive of $2.00 per Watt.
Income-qualified commercial, non-profit, or government properties can receive performance-based incentives of $0.15 per kWh with additional up-front incentives ranging from $0.50 to $1.00 per Watt.
Over the summer, the Inflation Reduction Act was passed by President Biden. Because of this, federal tax incentives for solar systems have been extended and increased to make solar energy more accessible. From 2022-2023 property owners who install solar systems can receive a 30 percent tax credit, which can be used in conjunction with programs such as Xcel Energy Solar Rewards.
Are you interested to see if you qualify for Xcel Energy Solar Rewards? Contact All Energy Solar for a free consultation; from there, a solar expert can help you discover what incentives you could qualify for.
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