Energy Incentive Programs, Colorado
Updated November 2009
Below you will find questions and answers regarding Colorado's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
Colorado utilities budgeted more than $34 million in 2008 to promote energy efficiency 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 will be spending up to $196 million on its demand-side management programs through 2013. Xcel Energy offers rebates, incentives, analysis, and project assistance available to Federal agencies:
Rebates for specific energy-saving equipment are available through the Boiler Efficiency, Compressed Air Efficiency, Cooling Efficiency, Data Center Efficiency, Lighting Efficiency, Motor and Drive Efficiency, and Natural Gas Furnace programs. Many of the rebates are double for lighting efficiency retrofits completed after February 15, 2009.
The Custom Efficiency Program provides customized rebates for energy-efficient equipment not covered by Xcel's other energy efficiency programs.
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. Xcel emphasizes the importance of employing these programs very early in the new project timeline; well before projects break ground.
The Re-commissioning Program covers up to 75% of the cost (not to exceed $25,000) of a re-commissioning diagnosis for buildings of at least 50,000 square feet in size. Rebates are also available for up to 60% of the cost of implementing identified energy-saving measures.
The Energy Analysis Program provides a free online energy assessment tool and offers low-cost on-site energy audits.
Customers of Colorado Springs Utilities can take advantage of two energy efficiency programs:
The Business Lighting Rebate program provides incentives for T8 and electronic ballast lighting retrofits.
Peak Demand Rebates of $400 per kW are available for energy efficiency measures that reduce peak demand, including lighting, motors, and HVAC. Eligible projects must reach a minimum 10 kW demand reduction during the summer weekday/non-holiday peak period.
Estes Park Light and Power, Fort Collins Utilities, Loveland Water and Power, Longmont Power and Communications, and Platte River Power Authority are collaborating on several programs that offer rebates to business customers:
The LightenUp lighting retrofits program offers varying incentives depending on fixture types and project type (e.g., new construction or existing building retrofit). Program changes for 2009 (PDF 115 KB) include increased rebates for 8-foot fluorescents, removal of the 60% project cost cap, and additional prescriptive options. Download Adobe Reader.
The Electricity Efficiency for New Construction and Renovations (not available in Loveland or Longmont) program provides incentives for prescriptive and custom measures.
The Electric Efficiency program for existing buildings offers the greater of $0.10 per first-year kWh of energy savings or $500 per kW of summer demand savings. In order to be eligible, the application must be processed prior to beginning work.
Fort Collins Utilities' Integrated Design Assistance Program offers two different levels of incentives and technical support for new construction and renovation projects.
Customers of Holy Cross Energy may apply for grants of up to 20% of their previous 12 months bill ($10,000 maximum) for costs of an engineering grade energy audit, and/or costs of labor, equipment, and/or materials identified by the evaluation.
La Plata Electric Association provides rebates for installing electric water heaters, permanent electric heaters, energy-efficient motors, and air and ground source heat pumps.
Longmont Power and Communications' Grant Program offers up to $5,000 in matching funds on top of other incentives for projects that reduce energy and power consumption.
Sangre De Cristo Electric Association offers rebates on new space heating and new or replacement water heating equipment.
SourceGas offers the Excess Is Out Program through which customers can receive technical evaluations and reimbursement for up to half the cost of energy efficiency upgrades. Covered systems include high-efficiency gas heating, heat recovery, ceiling and wall insulation, combined heat and power installations, improvements to boilers and other space and water heating systems, controls, and gas-fired process equipment.
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, and ENERGY STAR® appliances. Rebates must be requested within 180 days of installation.
What load management/demand response options are available to me?
Colorado Springs Utilities offers two load management opportunities for Federal customers:
The Peak Demand Rebates program is available for installation of energy efficiency 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). The Kilowatcher rate option 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 Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation.
Pursuant to the 2004 passage of Amendment 37, Colorado utilities with 40,000 or more customers must provide a $2. per watt (or greater) rebate for solar photovoltaic (PV) systems (up to 100 kW) installed in their territory. Through 2010, Colorado's renewable portfolio standard requires that 5% of each utility's retail electricity sales come from renewable and/or recycled energy. Of that amount, 4% must come from solar resources and half of the solar resources must come from solar technologies located on-site at customer facilities. For details, see Xcel Energy's Solar*Rewards Program, Colorado Springs Utilities' Renewable Energy Rebate Program, which provides a $3.75/watt rebate, and Black Hills Energy's On-site Solar Power Program, which provides direct rebates on system costs plus renewable energy credit (REC) purchases.
Holy Cross Energy's Renewable Energy Generation Program pays up to $2 per watt of installed capacity (up to 50% of actual total cost).wind, hydroelectric, photovoltaic, biomass or geothermal technology up to 6 kilowatts.
The Governor's Energy Office (GEO) is partnering with utility companies to offer a rebate for small wind turbine installations through the Small Wind Incentive Program. Participating utilities include Estes Park Light and Power, Highline Electric Association, Mountain View Electric Association, Sangre de Cristo Electric Association, and Southeast Colorado Power Association. The utility rebate amount of $1 per watt DC combines with $1 per watt DC from the GEO to total $2 per watt. Rebates cover up to 10 kW of installed capacity but are not to exceed 50% of the total cost of the project, or $10,000.
Are there energy efficiency programs sponsored by the state government?
In addition to the Small Wind Incentive program, the Governor's Energy Office offers several programs 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 the General Services Administration (GSA) (e.g., Colorado Springs Utilities and Public Service Company of Colorado) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. 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.