Rate paid is cut by almost half
Earlier this year, Xcel Energy was paying $2.50 per watt for renewable energy credits. Last week they announced that they were dropping that rate to $1.50 per watt. This would amount to a 40% cut.
The justification that Xcel used for the cuts was the price of solar systems has been falling consistently and the bailout package that was approved by Congress included a solar tax credit. These facters would give homeowners more cash to install these systems.
Starting in January 2009, homeowners will be eligible to receive a tax credit up to 30% of their total project costs. This is better than the previous ceiling of $2000.00 tax credit.