Xcel Energy rebate program leaves Coloradans frustrated over funding shortfall
Xcel Energy is facing backlash from customers after halting a popular rebate program due to overspending. The company confirmed this is the third time in three months a rebate program has run out of funds, leaving hundreds of customers uncertain about receiving the money they were promised.
The latest rebate program supported solar battery installations, but Xcel admits it approved more applications than it could afford. At least 450 customers are waiting to find out if they will receive their rebates. While Xcel says it has allocated funds to cover energy efficiency upgrades and rebates for about 100 low-income residents who purchased electric vehicles, the fate of many others remains unclear.
Among those affected is Jen Berger, an online stress management coach who invested in an electric boiler, water heater, and rooftop solar with a battery backup. Berger says her decision to go green was influenced by Xcel's rebate offer, which made the expensive solar battery more affordable.
"I had everything coordinated. It was good to go," she said.
But Xcel delayed her project, citing the need for power line upgrades in her area. The delay stretched into months, and then Berger received devastating news: the rebate program had ended, leaving her without the promised funds.
"I just like, at that point, I was done," Berger said.
Xcel spokespersons acknowledged the overspending, which they attribute to underestimating the power output of batteries like the Tesla Powerwall. This led to larger-than-expected rebates and drained the program's funds more quickly than anticipated.
David Reichert, with solar installation company Photon Brothers, says contractors were given little notice before the program's closure.
"We got a call saying, 'We're really over budget. You have about five business days to get as many applications in as you can.' But there was no guarantee the funds would be available," Reichert explained.
Rebates were calculated on a per-kilowatt basis and capped at half the cost of a battery.
For Berger, the stress of the situation has been overwhelming.
"I help people learn skills to deal with high-stress situations, and I'm at my wit's end," she said. "I can't imagine what other people are feeling right now."
Xcel says customers who submitted applications before October 2 will receive at least partial rebates, but the details are still being worked out. Just tonight, the company filed a motion with the Public Utilities Commission (PUC) to address the $6 million shortfall. Xcel is asking the PUC to reallocate funds from other programs to cover the deficit and to approve new rebates starting in January.
The rebate programs are funded by a surcharge on customers' bills.
