Colorado Electric Solar Power Program

Solar electric or photovoltaic technology converts sunlight into electricity. You may be more familiar with PV cells as solar cells that power watches and calculators. But PV can do much more. It can provide electricity for your home and provide the opportunity for you to take advantage of net metering.

The sun generates enough clean energy in one day to provide a year’s supply of energy for your home. Why not tap into this abundant resource of clean energy? Photovoltaic preserves the Earth's finite fossil-fuel resources — coal, oil, natural gas — and reduces air and noise pollution associated with those energy sources. Recent technological breakthroughs, combined with our incentive program and tax credit programs have greatly reduced the cost of PV ownership. PV system reliability and durability are outstanding; typical PV systems may last 40 years with minimal maintenance.

The solar cell is the basic building block of Photovoltaic technology. Solar cells are wired together to form a PV module. PV systems begin with the solar module. Modules gather solar energy in the form of sunlight and convert it into direct current (“DC”) electricity. The more sunlight they receive, the more electricity they produce. Solar modules are the heart of the PV system. In essence, they are the power generators. To convert DC power to alternate current (“AC”) power, the type of electricity used in your home, a device called an inverter is used. Depending upon the size of the PV system, inverters may be mounted by the PV manufacturer right on the back of a PV module. Inverters may also be wall-mounted separately from the PV system but within close proximity to the solar panels.

We give retail billing credits to solar customers who feed excess electricity back to the utility's grid. Known as net metering, this utility policy is implemented by letting the homeowner's electric meter spin backwards. Residents can use solar power to offset their energy needs or send excess energy to the grid.

Your electric meter spins forward when electricity flows from Black Hills into your home. The meter also records when power is flowing from your home backwards to Black Hills. So, if more electricity is generated through a photovoltaic system than your home requires, the excess energy flows backwards to our electric grid system, which is measured and applied to your account. At the end of the month, you are billed only for the net amount, that is, the amount of electricity you used minus the amount your meter sent back to our grid.

Production-based incentives are what we use to compensate customers for the renewable energy credits. The RECs generated by the solar system are captured with the production meter and totaled at the end of the year and paid out annually. The rate for the PBI payment is found on your reservation agreement and at the time of offering is listed on the online incentive matrix.

Beginning in 2013, PBI payment term is as follows:

• Small customer-owned or third-party-owned category up to 5 kW is paid over a 10-year period.
• Medium-size category greater than 10 kW up to and equal to 100 kW is paid over a 10-year period.

Systems in the small-system category have six months to complete the installation from the date the application is submitted to Black Hills. The medium system category has 12 months to complete installation.

A simple diagram is required showing all the major system components including the production meter and the AC disconnect in relationship to the house/utility meter.

For all system size categories, the maximum system size you can install is 120 percent of your most recent 12-month usage history. We’ll review your usage history at the time of your application. If your system size exceeds the 120 percent rule, your application will be declined and you will need to re-apply with a smaller system size.

Yes, as long as the change in size does not change more than 10 percent of the original system size on the application and does not exceed the 120 percent rule.

No, the solar company or developer must remain the same as on the original application. If you must change, you’ll need to submit a new application to Black Hills.

Yes, as long as the system size does not change more than 10 percent from the original application and the 120 percent rule for total size to historical usage is maintained. Equipment must be UL Approved and listed on the "Go Solar California" approved equipment list.

This requirement protects both parties if anyone were to get hurt while working on the meter or electrical service to your home or business. Owning a solar system makes you liable if someone were to get hurt while working on your service or meter, whether it is one of our employees, a firefighter, an individual or a contractor. For systems owned by a third-party developer, the insurance should be in the developer's name.

For systems greater than 10 kW, we need to be listed as additionally insured because Colorado is a shared liability state where multiple parties can be determined to be guilty.

Systems at 10 kW or below require a minimum of $300,000 personal liability coverage. Systems above 10 kW require a minimum of $1 million personal liability coverage.

The application deposit is designed to promote the submission of applications that have a high probability of being completed. The application deposit will be refunded to the provider if the solar system is successfully completed within the allotted time frame and the installation is approved for interconnection.

Yes. Regardless of who is submitting the deposit, we want to be sure that customers are aware of the program rules, deposit policy and all the implications associated with owning a solar system. All deposit forms and checks should be sent to:

Black Hills Energy
Attn: Solar Program
105 S. Victoria Ave.
Pueblo, CO 81003

Submit

We have received your online application.

Reviewed

We have received your deposit, deposit form and one-line diagram (Medium-sized systems must also submit a level two review form) and reviewed the customer account for payment history and annual usage in kWh.

Approved reservation

A reservation letter and accompanying agreements are sent to customer/owner of the solar system.

Receive executed agreements

Black Hills Energy reviews and executes final agreements.

Black Hills Energy final review/inspection

Black Hills Energy needs to receive and approve the following:

• Proof of insurance and copy of final invoice
• A review of final installation and agreements including the receipt of State or Local Inspector approval. Order anti-islanding testing and meter installation.

After the above is completed, an Interconnection is allowed.

Completed

Your incentive payment and deposit refund is approved.

Continuous Roll Over Credits

Any excess generation from your solar system will be rolled over month to month, year to year and held in your "banked energy" account. Your credits will be there for future use until you use them up. If you chose the roll over option, you will never receive a cash out, even if you close your account. Banked energy credits are not transferable.

Year-End cash out

Any banked energy credits in your account at the end of the calendar year will be cashed out at the current cash out rate.

Waive Decision Until Later Date

If you chose to wait to make a decision about accepting the continuous roll over, you will automatically default to the cash-out option. You can choose the roll-over option at any time. To do so, make a roll-over option request.

We’ll turn your system on and leave it on after we perform the anti-islanding test and the bi-directional meter install. You can operate the system for several hours after installation to test the system, but don’t leave it on. We ask that the inverter is turned on and left on after the commissioning but with the AC disconnect in the OFF position. This will prevent the system from operating but allow easy system turn on by our meter technician.

All net metered customers will have two meters, a bi-directional (net meter) and a production meter. The production meter reads actual AC power production of the solar system. We issue a check within 60 days after the end of the year for the actual production at the rate determined in the reservation agreement. The net metering will render a net usage bill where the net usage is the total usage you needed taking into account the solar energy that off-set your usage needs during that month.

For example:

• Your solar system produces 6,000 kWh in one month.
• You use a total of 4,000 kWh in the same month.
• Your excess energy of 2,000 kWh goes into a "banked energy" account for future credit.
• Your net usage will be zero for the month, since your production was in excess of your usage.
• The solar production of 6,000 kWh will contribute to the annual PBI incentive payment.

Example two:

• Your solar system produced 500 kWh in one month.
• Your usage for the month was 1000 kWh.
• Your total net usage was 500 kWh that month.
• Banked energy credits from "prior banked energy" were 100 kWh, available to credit your bill. Net kWh for billing is 400 kWh for the month.
• The solar production of 500 kWh will contribute to the annual PBI incentive payment.

The service charge is a flat monthly charge that recovers the cost of the metering, billing and service. The facility portion of the charge covers the cost of fixed assets, such as distribution feeders and transformers, needed to provide you energy when your solar system in not producing energy.

A production meter is a standard meter that is set up for payment rather than for billing. It measures AC kWh production (power) and is used to calculate the annual Renewable Energy Credit or PBI payments.

Yes, to qualify for a PBI, you will need to be connected to the grid. While your system may produce most or your energy needs, we’ll provide you reliable and seamless energy for periods when your system is not producing such as during the night or during cloudy days when production is reduced.

Your photovoltaic system will continue to produce electricity during cloudy weather, although the total amount will be reduced. We will still provide you with power at night and during bad weather.

A typical photovoltaic panel consists of solar cells connected electrically to form a module that can measure roughly 3 feet wide to 5 feet long. Some solar modules look just like traditional roof shingles. Many interconnected PV modules are called an array.

A photovoltaic system needs unobstructed access to the sun's rays for most, or all of the day, throughout the year. PV panels are relatively unaffected by changing weather. In fact, some PV cells actually work better at colder temperatures. PV modules are angled to catch the sun, not snow, so any snow that does collect melts quickly. To maximize the energy production of photovoltaic electricity, PV systems are installed on a southern exposed roof and mounted parallel with the roof pitch with no shading. However, roofs that face east or west may also be acceptable. PV panels should have their surfaces exposed to the sun's rays for most or all of the day, with minimal or no shadows from trees, chimneys and gables.

An energy-efficient home means you can install less photovoltaic panels. Every dollar spent toward energy efficiency in your home reduces the investment needed for solar electric panels. Visit our energy-saving tips page for great ways to be more efficient in your home.

Proper placement of your photovoltaic system is critical to the success of the output. Having even one cell in a PV module in the shade, especially during the best sun hours of the day, can decrease the output for the entire module and possibly the entire system. Since the shaded cell is not producing any moving electrons, it acts like an open circuit to the entire string. This is similar to having one Christmas tree light burned out in a string of lights; the current can’t flow.

When looking to place your PV system, please watch for any type of shading from trees, chimneys, TV antennas/satellite dishes and dormers.

The amount of space needed by a photovoltaic system is based on the output of the PV system and the type of PV system installed. Most residential systems require as little as 50 square feet (for a small "starter" system) up to as much as 1,000 square feet for larger systems. A typical 2-kilowatt system could occupy approximately 200 square feet.

We recommend that you consult a solar contractor to help determine the solar system requirements for your home. Solar contractors can also do a site review to help size your solar system.

As a starting point, you might consider how much of your current electricity needs you would like to meet with your photovoltaic system. For example, suppose that you would like to meet 50 percent of your electricity needs with your PV system. You could work with your PV provider to examine past electric bills and determine the size of the PV system needed to achieve that goal. You can contact our customer service department and request the total electricity usage, measured in kilowatt hours for your household during the past 12 months or consult your electric bills if you save them.  Ask your PV provider how much your new PV system will produce on an annual basis and compare that number to your annual electric demand to get an idea of how much you will save.

PV Watts is a simple tool you can use to estimate the amount of solar energy produced over a year. Simply input your location, PV system size and kW, tilt and orientation to calculate your results.

A PV system can be installed on any well-structured roof. Typically, asphalt shingles are easiest to work with, while slate is the most difficult. If your roof is older and needs to be replaced, you may want to replace it at the time the PV system is installed to avoid the future cost of removing and reinstalling your PV system.

We recommend that you consult a solar contractor to help determine the solar system requirements for your home. Solar contractors can also do a site review to help size your solar system.

The cost of your photovoltaic system will depend on a number of factors, including the energy efficiency of your home, system size, site conditions, and electrical service.

We recommend seeking out estimates from several qualified solar contractors.