Distributed Solar Sparks ‘War of Business Models’

Threatened by the increasingly diverse electricity generation market, more utilities are pushing back on incentives for rooftop solar, such as net-metering credits.

1 minute read

January 18, 2014, 1:00 PM PST

By James Brasuell @CasualBrasuell


Rooftop Solar Panels

CoCreatr / Flickr

Colorado is the most recent battleground of a war between utilities like Excel Energy and companies like SolarCity, which provides leasing programs for about 4,000 customers in the state.

Mark Jaffe reports that “Xcel Energy is seeking to restructure the incentives and credits for rooftop solar,” especially by reducing incentives for energy produced by rooftop solar to fractions of a penny for each kilowatt-hour. Excel also wants to reduce the net-metering credit that installations receive for putting excess energy onto the grid. Net-metering, in place in 43 states in the United States, is the central sticking point in similar fights around the country.

Excel believes that the cost of solar power production has dropped to the point that distributed solar businesses no longer require subsidies. Also, Excel argues that solar installations place unfair burden on the utility’s other customers.

Excel Energy has already contributed to the installation of 17,800 solar energy systems since 2006 under its Solar Rewards Program. In all, residents and businesses have received $267 million in incentives under the program. Companies like SolarCity, however, claim that the proposed changes are meant to kill their business: "What Xcel is proposing cripples the solar industry,” says Meghan Nutting, director of policy and electricity markets at SolarCity.

Sunday, January 12, 2014 in Denver Post

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30, 2026 - Yale Environment 360

People vote in Chicago behind blue privacy screens

Chicago voters approve permanent festival grounds, penalty for vacant property owners

Currently, major summer and fall festivals take over public parks for weeks at a time, drawing criticism from nearby residents

November 5 - Block Club Chicago

Mayor Zohran Mamdani speaks into a microphone. He wears a gray suit.

NYC votes to cut outdoor dining red tape, speed up permitting

New York City also voted to allow the Department of Transportation to begin work on urgent projects before notifying elected officials.

November 5 - The City Reporter

People in Los Angeles going to the polls, following a sign with an "I Voted" design

California appears to reject Prop. 45

The proposition would have expanded the projects that qualify for a streamlined environmental review, effectively paring down the California Environmental Quality Act.

November 5 - Cal Matters