Denver residents are taking advantage of the city’s sunny days and mild temperatures — and turning the sunshine into solar energy. At the end of 2013, the Mile High City had a total installed capacity of 25 megawatts (MW) of clean energy from the sun, ranking it the 10th best city in America in terms of solar energy. The cities were evaluated by Environment Colorado and released in the 2014 report, “Shining Cities: At the Forefront of America’s Solar Energy Revolution.”

The Mile High City’s cumulative capacity of 25 MW of solar breaks down to 40 watts per person, or enough solar to power the needs of 7,500 homes, the report reveals.

“The sky’s the limit on solar energy,” Margaret McCall, energy associate with Environment Colorado, said in a statement. “Denver is a shining example of solar leadership. But we’ve barely scratched the surface of the potential to capture this pollution-free energy source.”

Driving Solar Growth by Installations on Public Buildings

Denver and Portland were the two U.S cities commended for their leadership role in driving solar growth by installing solar panels on public buildings.

“Cities can lead and catalyze local markets by installing solar power on city buildings and setting ambitious but achievable targets for solar energy,” the report stated. “Denver has installed 9.4 MW of solar power on city and county buildings, and the city has partnered with the Denver Public Schools to install solar power on 28 school buildings.”

A Successful Renewable Portfolio Standard (RPS)

One reason that the Mile High City is a top city for solar is because of its Renewable Portfolio Standard (RPS) and consequently, Xcel Energy’s solar rebates. The first state in the nation to adopt an RPS mandate, Colorado requires investor-owned utilities (IOUs) to derive 30 percent of its electricity from renewable sources by 2020.

Because of the RPS requirement, IOUs like Xcel need customers to switch to renewable energy to meet the state mandate — and entice them by offering cash payments called solar Renewable Energy Credits (RECs). Throughout Colorado, only two power companies issue performance payments for every kilowatt hour of generated solar: Xcel Energy and Black Hills. As these utilities reach their RPS requirements, they begin paying less (and then nothing) for renewable energy production.

Although REC payments from smaller customer-owned systems (up to 25 kilowatts) have already fallen to$.03 per kWh, customers in Xcel Energy’s service territory can still obtain higher REC payments through community solar.

Community Solar RECs

When the Colorado Community Solar Gardens Act was passed in 2010 authorizing community solar projects, Xcel Energy developed its Solar*Rewards program—offering 10 solar rewards programs in Colorado each year. Through the program, community-owned solar developer Clean Energy Collective (CEC) has built nine shared solar facilities in which customers can buy panels and receive cash performance payments from Xcel. Another three Solar*Rewards projects are under development in Arapahoe, Lake and Boulder counties.

Although the REC payments for personal solar systems decrease over time, the RECs issued in conjunction with Solar*Rewards projects are locked in at a rate negotiated between CEC and Xcel. Therefore, customers who purchase panels in these community-owned solar projects will receive quarterly REC payments between $.08 and $.11 per kWh (gross) throughout the array’s 20-year life expectancy — compared to the 10-year REC payments issued for smaller rooftop systems.

“Solar power is booming across the country and cities are at the forefront,” McCall said. “As the number 10 city in the country, Denver is a case in point — but we still have work to do to make the most of our 300 days of sun.”

The original article was posted on the CEC blog.