Bill to Revitalize Colorado’s Community Solar Program, Set Standards for Equitable Clean Energy Policy Clears Committee
Legislation could leverage hundreds of millions of federal dollars from the Inflation Reduction Act to expand access to the clean energy transition
DENVER, CO – Legislation to revitalize Colorado’s community solar program and set new standards for equitable clean energy policy cleared the Senate Transportation and Energy Committee today.
Sponsored by Senate President Steve Fenberg, D-Boulder, and Chris Hansen, D-Denver, SB24-207 would put Colorado in a strong position to leverage hundreds of millions of federal dollars from the Inflation Reduction Act to expand access to the clean energy transition, upgrade Colorado’s electric grid, and reduce energy costs.
“All Coloradans, regardless of income level or homeownership status, should be able to participate in the transition to renewable energy,” said Fenberg. “This important bill removes barriers to accessing solar energy – like homeownership or credit score requirements – to ensure renters, non-profits, and small businesses can take part without breaking the bank. With unprecedented federal funding opportunities through President Biden’s Inflation Reduction Act, now is the time to revitalize Colorado’s community solar program and ensure our state remains a leader in renewable, clean energy use.”
“Colorado’s community solar program was designed to welcome all Coloradans to the transition to clean energy,” Hansen said. “However due to outdated policies, lower-income Coloradans or renters haven’t accessed these critical programs at the levels we hoped. This bill aims to break down barriers and get more people connected to community solar – supporting our transition to clean energy while saving folks money on their energy bill.”
Community solar projects generate electricity that flows directly to the electricity grid. Community solar subscribers pay for a share of the electricity generated by the project, and then receive bill savings on their electricity bill in the form of a monthly credit. Community solar paired with storage alleviates stress on the grid and avoids costly transmission system upgrades.
Colorado was the first state in the nation to pass community solar legislation, however only one percent of Xcel’s customers are able to participate in community solar due to the program’s outdated design and limited size.
The bill would improve the future of community solar in Colorado by:
Requiring investor-owned utilities to continue allowing for the development of community solar projects;
Reserving at least 51 percent of community solar projects for income-qualified residential subscribers;
Delivering income-qualified residential customers a 25 percent bill credit discount, which increases to up to 50 percent with federal tax credits;
Adopting subscriber enrollment methods and consumer protections; and
Giving the Public Utilities Commission discretionary authority to evaluate community solar program requirements in 2028 and beyond.
SB24-207 now moves to the Finance Committee for further review. Track its progress HERE.