4 Colo. Code Regs. § 723-3-3658

Current through Register Vol. 47, No. 20, October 25, 2024

Section 4 CCR 723-3-3658 - Standard Rebate Offer

(a) Each investor owned QRU shall make available to its retail electricity customers a standard rebate offer (SRO) expressed in terms of dollars per watt for on-site solar systems that become operational on or after December 1, 2004. The SRO shall be $2.00 per watt except that the Commission may set the SRO at a lower amount upon finding that market changes support such lower amount.

(b) The maximum rebate per site shall be 100 kW times the SRO. At the investor owned QRU's option, the SRO may be paid based upon the direct current (DC) watts produced by the on-site solar systems. The SRO shall be contingent upon the transfer to the investor owned QRU of the RECs produced by the on-site solar system. Any RECs acquired by the investor owned QRU pursuant to such SRO program, regardless of whether the associated renewable energy is specifically metered or contractually specified without specific metering, may be counted by the investor owned QRU for purposes of compliance with the RES.

(c) When establishing an SRO below $2.00 per watt, the Commission shall target an amount such that the SRO, in combination with the investor owned QRU's standard offers to purchase RECs from on-site solar systems and with other financial incentives and tax benefits, results in reasonable overall levels of incentives to the customers participating in the investor owned QRU's SRO programs.

(d) With each compliance plan filed by the investor owned QRU under rule 3657, or by separate application, the investor owned QRU may propose that the Commission reduce the SRO in accordance with projected changes in the standard prices the investor owned QRU offers customers for RECs from on-site solar systems.

(e) Investor owned QRUs may establish one or more standard offers to purchase RECs from on-site solar systems that meet the definition of paragraph 3652(ff) so long as the on-site solar system is 500 kW or less in size. Subject to the retail rate impact in rule 3661:

(I) the investor owned QRU shall design standard offers that allow consumers of all income levels to obtain the benefits offered by on-site solar systems and that extend participation to consumers in all market segments eligible for SRO programs; and

(II) the QRU shall have the discretion to determine, in a nondiscriminatory manner, the price it will pay for RECs from on-site solar systems that are no larger than 500 kW.

(f) The SRO and the standard offers to purchase RECs from on-site solar systems shall meet the following requirements.

(I) The investor owned QRU need not offer a SRO for or purchase RECs from an on-site solar system smaller than 500 watts.

(II) The SRO and the standard offer to purchase RECs must be made available to all retail utility customers of the investor owned QRU on a non-discriminatory, first-come, first-served basis, based upon the date of contract execution.

(III) Applicants who are accepted for the SRO rebates shall have one year from the date of contract execution to demonstrate substantial completion of their proposed on-site solar system. Substantial completion means the purchase and installation on the customer's premises of all major system components of the on-site solar system. Customers who do not achieve substantial completion within one year will not receive an SRO rebate, unless the substantial completion date is extended. When substantial completion of an on-site solar system has been achieved by an applicant pursuant to this rule, the RECs may be counted for purposes of compliance with the RES. Within 30 days of substantial completion, the SRO rebate, pursuant to paragraphs 3658(a) and (b), and REC payment, pursuant to subparagraph 3658(f)(VIII), shall be paid to the applicant.

(IV) With the exception of batteries, all on-site solar systems eligible for SRO rebates shall be covered by a minimum five-year warranty. Contracts will require customers to maintain the on-site solar system so that it remains operational for the term of the contract.

(V) On-site solar systems must consist of equipment that is commercially available and factory new when installed on the original customer's premises to be eligible for the SRO rebate. Rebuilt, used, or refurbished equipment is not eligible to receive the rebate unless the equipment is transferred by a commercial tenant from another premise as permitted by subparagraph 3658(f)(VII)(C).

(VI) Customers may contract to expand their on-site solar systems within program parameters and obtain a rebate for the expanded capacity up to the cap set forth in paragraph 3658(b).

(VII) In order to receive the SRO rebate payment

(A) A residential customer must enter into an agreement with the investor owned QRU, which agreement shall have a minimum term of 20 years and that transfers the RECs generated by the on-site solar system during the term of the agreement from the customer to the investor owned QRU.

(B) A commercial customer may enter into an agreement with the investor owned QRU, with a minimum term of 20 years, that transfers the RECs generated by the on-site solar system during the term of the agreement from the customer to the investor owned QRU; provided, however, that if the agreement is different than 20 years as permitted by subparagraph 3656(f)(III) the rebate shall be prorated to reflect the different term.

(C) Irrespective of the term of the REC transfer agreement between the commercial customer and the investor owned QRU, if the commercial customer is in a leased facility, the commercial customer must obtain the approval of the investor owned QRU, which shall not be unreasonably conditioned, delayed or withheld, and either permission from the commercial customer's landlord, or other documentation evidencing the tenant's unequivocal right to install an on-site solar system. Such commercial tenant customer may relocate the on-site solar system to a substitute premise reasonably acceptable to the investor owned QRU at any time during the term of the agreement, provided that:

(i) payment for all RECs shall be made by the investor owned QRU on a metered basis;

(ii) the new location is within the investor owned QRU's service territory;

(iii) the on-site solar system is not out of operation for more than 90 days due to such relocation;

(iv) the agreement is extended for the period of time the on-site solar system is out of operation; and

(v) the customer bears the cost of relocating the production meter, or the costs of setting a new production meter, at the new location.

(D) If the on-site solar system of a commercial customer is out of operation for more than 90 days, the investor owned QRU may terminate the agreement and upon such termination the customer must repay the pro rata share of the rebate based on the number of years remaining in the term of the agreement.

(VIII) Except for on-site solar systems of commercial tenants who opt for an agreement under subparagraph 3658(f)(VII)(C), and except for solar facilities that are owned by entities other than the on-site consumer of the solar energy, for on-site solar systems, up to and including ten kW, that become operational on or after December 1, 2004, the investor owned QRU shall offer to make a one-time payment, in addition to the standard rebate payment, for the RECs contracted to be transferred from the customer to the investor owned QRU. Any customer that receives the rebate payment and one-time REC payment under this program shall not be entitled to any other compensation for the RECs contracted to be transferred to the investor owned QRU. To facilitate installation of these small systems, all procedures, forms, and requirements shall be clear, simple, and straightforward to minimize the time and effort of homeowners and small businesses.

(IX) For on-site solar systems greater than ten kW that become operational on or after December 1, 2004, and for all on-site solar systems of whatever size that are owned by an entity other than the on-site consumer of the solar energy, the investor owned QRU, in addition to the standard rebate payment, shall offer to pay for the RECs contracted to be transferred from the customer to the investor owned QRU. Such SO-RECs and the associated payments shall be determined by the specifically metered renewable energy output from the on-site solar system.

(X) The customer or its representative shall provide a calculation of the annual expected kWh production from the customer's on-site solar system. The customer or its representative shall provide the following documentation to back up the customer's calculation:

(A) Tilt of the system in degrees (horizontal = 0 degrees);

(B) Orientation of the system in degrees (south = 180 degrees);

(C) A representation that the orientation of the system is free of trees, buildings and or other obstructions that might shade the system measured from the center point of the solar array through a horizontal angle plus or minus 60 degrees and a through vertical angle between 15 degrees and 90 degrees above the horizontal plane.

(D) A calculation of the annual expected kWh of electricity produced by the system. For PV systems, the calculation of annual expected kWh of electricity will be based on the public domain solar calculator PVWatts Version 1 (or equivalent upgrade).

(i) The weather station that is either nearest to or most similar in weather to the installation site;

(ii) The system output rating which equals the module rating times the inverter efficiency times the number of modules;

(iii) Array type: fixed tilt, single axis tracking, or 2 axis tracking; For variable tilt systems, the PVWatts calculations can be run multiple times corresponding to the number of times per year that the system tilt is expected to be changed using those months corresponding to the specific tilt angle used;

(iv) Array tilt (degrees); and

(v) Array azimuth (degrees).

(E) In the event PVWatts is no longer available, an equivalent tool shall be established.

(F) For on-site solar systems up to and including ten kW, the REC payment may be adjusted, either up or down, based on the calculation of expected kWh of electric output derived from subparagraph 3658(f)(X)(D) as compared with an optimally oriented fixed, i.e., non-tracking, system at the customer's location, but only if the calculated system output differs from the optimally oriented system output by more than ten percent.

(XI) The level of REC payments for systems of ten kW and smaller offered in connection with an investor owned QRU's SRO program may be adjusted from time to time as needed to achieve compliance with the RES.

(XII) Except for on-site solar systems of commercial tenants who opt for an agreement under subparagraph 3658(f)(VII)(C), the on-site solar system installed must remain in place on the customer's premises for the duration of its contract life. However, all customer equipment must have electrical connections in accordance with industry practice for permanently installed equipment, and it must be secured to a permanent surface (e.g., foundation, roof, etc.). Any indication of portability, including, but not limited to, wheels, carrying handles, dolly, trailer or platform, will render any on-site solar system ineligible for participation and payments under the SRO program.

(XIII) On-site solar systems installed on an apartment building must either be owned and operated by the owner of the building or the owner of the facility must provide documentation of the right to install and maintain the solar panels on the apartment building premises for 20 years. Each on-site solar system must be dedicated to a specific meter and the load at the meter must meet the size limits for net metering of on-site solar systems.

(XIV) On-site solar systems installed on condominiums must be owned by the condominium owner, or by a third party on behalf of the condominium owner, and metered to that owner's unit. The owner must provide documentation that the owner has the legal right to install and maintain the solar panels at the site for the term of the 20-year agreement. If the on-site solar system serves a general common element common area, the contract will be with the condominium owners' association. If the on-site solar system serves a limited common element common area, the contract will be with the condominium unit owner or owners.

(g) The investor owned QRU shall modify the standard contracts for its SRO programs to enable governmental entities to participate in such programs.

(h) Sales of electricity may be made by an owner or operator of an on-site solar system to the end-use electric consumer located at the site of the on-site solar system. If the on-site solar system is not owned by the electric consumer, the investor owned QRU shall pay for the RECs on a metered basis. The owner or operator of the on-site solar system shall pay the cost of installing the production meter.

4 CCR 723-3-3658

38 CR 17, September 10, 2015, effective 9/30/2015

39 CR 06, March 25, 2016, effective 4/14/2016

39 CR 08, April 25, 2016, effective 5/15/2016

40 CR 22, November 25, 2017, effective 12/15/2017

42 CR 03, February 10, 2019, effective 3/2/2019

42 CR 07, April 10, 2019, effective 4/30/2019

42 CR 09, May 10, 2019, effective 5/30/2019

43 CR 08, April 25, 2020, effective 5/15/2020

43 CR 12, June 25, 2020, effective 7/15/2020

43 CR 20, October 25, 2020, effective 11/14/2020

44 CR 13, July 10, 2021, effective 7/30/2021

44 CR 24, December 25, 2021, effective 1/14/2022

45 CR 18, September 25, 2022, effective 10/15/2022

46 CR 02, January 25, 2023, effective 2/14/2023