Energy Incentive Programs, Colorado

Updated February 2012

Colorado utilities budgeted almost $100 million in 2010 to promote energy efficiency and load management in the state.

What public-purpose-funded energy efficiency programs are available in my state?

Colorado has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

Under a settlement agreement with the Colorado Public Utilities Commission and other interested parties, Xcel Energy will spend up to a total of $196 million on its demand-side management programs through 2013. Xcel Energy offers incentives, analysis and project assistance for which federal agencies are eligible:

Rebates for specific energy-saving equipment are available through the Compressed Air, Cooling Efficiency, Data Center Efficiency, Energy Management Systems, Lighting Efficiency, Motor and Drive Efficiency, and Heating Efficiency programs.
The Custom Efficiency Program provides incentives (up to $400/kW of electricity and $7 per dekatherm of gas saved) for energy-efficient measures that exceed standard options or are not covered by Xcel Energy's other energy efficiency programs. Projects require pre-approval before purchase and installation. A wide variety of equipment is eligible, ranging from LED lighting and building envelope measures and process improvements to HVAC, cooling towers and miscellaneous office equipment.
The Business New Construction Program offers a variety of free services and rebates. New facilities 50,000 square feet or larger qualify for free design assistance under the Energy Design Assistance initiative. Smaller facilities can qualify for rebates for installing specific energy-saving equipment under the Energy Efficient Buildings offering (see below). Xcel Energy emphasizes the importance of employing these programs very early in the new project timeline—well before projects break ground. The Energy Design Assistance program provides design services and incentives for projects at least 50,000 sq. ft. in size. The Energy Efficient Buildings program is designed for new construction and major renovation projects of 50,000 square feet or less.
The Re-commissioning Program funds up to 75% of the cost (up to $25,000) of a re-commissioning diagnosis for buildings of at least 50,000 square feet or that demonstrate high energy use. Rebates are also available to offset up to 60% of the cost of implementing identified energy-saving measures.
The Energy Analysis Program provides a free on-line energy assessment tool and offers low-cost on-site energy audits.
The Standard Offer Program provides rebates for technical energy audits and recommended electricity and natural gas efficiency measures. The program is targeted toward entities working with energy service companies (ESCOs).

Black Hills Energy offers several efficiency programs to its commercial and industrial customers:

The Commissioning/Recommissioning Program offsets 50% of the cost for retro-commissioning services and provides a list of qualified trade allies who can conduct the work.
The Custom Rebate Program provides commercial customers with rebates of up to 50% of the incremental cost of energy-saving measures, or $0.30 per kWh of annual savings, whichever is less. Industrial customers may receive the lesser of 50% of the incremental cost or $0.25 per kWh. Rebates are capped at $40,000 maximum per facility per program year. Purchase and installation must be completed by July 31, 2012.
The Commercial/Industrial Prescriptive Rebate Program provides incentives (up to $40,000 per facility annually) for efficient lighting, HVAC, chillers, motors and other electrical efficiency measures.
The New Construction & LEED Green Buildings Program provides incentives for both the design and construction phases of new construction or major renovations for projects that achieve at least 15% more savings than the IECC 2006 and ASHRAE 90.1-2004 standards. The program offers two levels of incentives: the Custom Track for projects that enroll near the end of the schematic design phase (typically garnering 30%-40% more energy savings than the standards) and the Custom Plus Track (designed to help owners achieve 40%-60% more savings than the standards) for projects enrolling immediately after architect selection.
The Colorado Gas Prescriptive Rebates Program offers cash incentives for purchases of high-efficiency space heating, water heating and commercial kitchen equipment.
The 2011 Colorado Gas Commercial New Construction Program provides financial incentives to offset design and installation costs of energy-efficient building systems and equipment (at least 15% better than IECC 2006 and ASHRAE 90.1-2004) in new construction and major renovation projects.

Non-residential customers of Colorado Springs Utilities can take advantage of several energy efficiency and demand reduction programs:

The Lighting Rebates program provides incentives for fluorescent T8 lamps and for upgrading standard metal halide lamps to more efficient options.
The HVAC Rebates program provides rebates for installation of several different types of efficient equipment including evaporative coolers and package or split system air conditioning units.
The Prescriptive Rebates program offers incentives for replacement of old equipment with new efficient models, including motors, synchronous belts and pulleys, various types of air conditioners (including evaporative units), as well as occupancy sensors for interior lighting.
Peak Demand Rebates of $400/kW are available for energy-efficiency measures that provide verifiable peak demand reduction, including lighting, motors, and HVAC. Eligible projects must achieve a minimum 20 kW of demand reduction during the summer weekday/non-holiday peak period (3 - 6 p.m., June 15 through September 15).
The Restroom Rebates program provides cash incentives (up to $125 each with a maximum of 100 rebates per customer per year) for upgrading toilets and urinals to low-flow models.
Window Rebates of $1.42 per sq. ft. ($17,500 maximum) are available to offset the cost of upgrading to windows rated as efficient by the National Fenestration Rating Council.

Under the umbrella of the Platte River Power Authority, Estes Park Light and Power, Fort Collins Utilities, Loveland Water and Power and Longmont Power and Communications offer several rebate programs to business customers:

The LightenUp lighting retrofits program offers prescriptive and custom incentives that vary depending on fixture and project type (e.g., new construction or existing building retrofit). See "What's New for LightenUp" for additional updates and information.
The Electric Efficiency Program for New Construction and Renovations (not available for Loveland or Longmont) provides incentives for prescriptive and custom measures including air sealing, insulation, windows, cool roofing and window film.
The Energy Efficiency Program for Existing Buildings offers incentives for prescriptive and custom measures. In order to be eligible, the application must be processed prior to beginning work.
The Building Tune Up Program to identifies opportunities to improve building comfort, operations and efficiency. While the re-commissioning audit is paid for, customers must commit to implementing all measures with a two-year or shorter simple payback.
The Efficiency Express program for small commercial customers (50,000 sq. ft. or less) of Estes Park Light & Power and Loveland Water and Power provides free energy assessments and technical assistance through building tune up and upgrade projects.

Fort Collins Utilities offers two additional programs:

Cash Incentives for Energy Saving Improvements are available for energy efficiency upgrades including lighting, air conditioner equipment and tune ups, motors and other mechanical equipment, building envelope measures, office and kitchen equipment and custom measures.
The Integrated Design Assistance Program offers two options for receiving incentives and technical support for new construction and renovation projects that exceed building code requirements for energy performance. The whole building approach is used for projects in early design stage and uses an integrated approach that attempts to reach the highest cost-effective building performance. The prescriptive approach targets specific equipment and systems, and is used for projects that are already beyond schematic design, on a fast track, or when resources prevent using the whole building approach.

La Plata Electric Association, Inc. provides rebates for installing efficient lighting, electric water heaters, permanent electric heaters, energy-efficient motors and air- and ground-source heat pumps.

Sangre De Cristo Electric Association offers rebates for new space heating and new or replacement water heating equipment.

SourceGas offers the Excess Is Out Program, which provides rebates for a variety of energy-efficiency equipment upgrades including high-efficiency gas furnaces and , boilers, duct and pipe insulation, ceiling and wall insulation and improvements to existing space and water heating systems.

United Power offers rebates for installing specific energy-efficient equipment and appliances including air- and ground-source heat pumps, electric water heaters, electric heat and thermal storage, motors, commercial lighting, LED street lighting, and ENERGY STAR appliances. Rebates must be requested within 180 days of installation.

The Database of State Incentives for Renewables and Efficiency (DSIRE) website provides information on additional programs offered to commercial customers by municipal utilities and rural electric cooperatives.

What load management/demand response options are available to me?

Xcel Energy's Interruptible Service Option Credit (ISOC) provides demand charge savings to customers who have interruptible demand of at least 300 kW during June through September. Participants choose the advance notice option and the amount of interruption appropriate for their facility, and receive monthly credits on their demand charges, which range from $6.10 to $8.89 per kW in the summer (June-September) when the majority of interruption events are called, and $4.90 to $7.15 per kW the rest of the year (October-May).

Colorado Springs Utilities offers two load management opportunities available to federal customers:

The Peak Demand Rebates program, described above, is available for installation of load-shifting measures that reduce peak demand.
The Kilowatcher Program is offered to large customers (500 kW or higher electrical demand during the past 12 billing periods) and allows customers to buy electricity at a lower rate during on-peak hours, provided they curtail load up to 100 hours per contract year when called upon during pre-declared "Super Peak" periods.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) website provides information on programs that offer incentives for renewable distributed generation.

Pursuant to the 2004 passage of Amendment 37, Colorado's utilities with 40,000 or more customers must provide a $2/watt (or greater) rebate for solar PV systems (up to 100 kW) installed in their territory. In early 2010, H.B. 1001 increased the state's renewable portfolio standard (RPS) to 12% of annual retail sales from 2011-2014, 20% annually from 2015-2019, and 30% by 2020. The legislation also mandates that by 2020, 3% of total electricity sales must come from distributed generation systems, (e.g., customer-located solar PV).

For current offerings, see Xcel Energy's Solar*Rewards Program, Colorado Springs Utilities' Renewable Energy Rebate Program and Black Hills Energy's On-site Solar Power Program. Xcel Energy rebate levels step down over time and as of August, 2011 were $0.50/DC watt for systems up to 10kW and $50 per MWh for customer-owned or third party-owned systems over 10kW and up to 500 kW.Colorado Springs pays $2.00 per AC watt. Black Hills pays up front and performance-based rebates that vary depending on the system size and ownership structure.

Are there energy efficiency programs sponsored by the state government?

The Governor's Energy Office (GEO) offers several programs, including the High Performance Building Program, that provide support for public agencies to invest in energy-efficiency improvements through performance contracting, sustainable design in new buildings, commissioning, and other energy management strategies.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g., Colorado Springs Utilities and Public Service Company of Colorado), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.