Colorado was once a leader in connecting individual rooftops and community solar gardens to the grid in support of building a renewable energy economy, solar advocates say, but the state fell behind as others wrote more efficient laws or offered attractive incentives.

Two new developments could help put Colorado back on the clean energy charts, those advocates say. Here’s a quick summary:

Colorado wins federal solar grant

The Colorado Energy Office on Monday won a $156 million grant from the federal “Solar for All” program, aimed at creating low-cost loans and other incentives for low-income families to purchase rooftop solar energy. Incentives could also go toward new solar panels for low-income multifamily apartment buildings.

Solar for All proponents, such as Vermont U.S. Sen. Bernie Sanders, also say the grants could allow more low-income residents to sign up for community solar gardens, which are built in parking lots and other off-site locations and provide groups of its subscribers a discount on their electricity bill.

“Families for whom the upfront costs have been prohibitive will now have the support they need to invest in solar panels,” Sanders’ office said.

The Colorado Energy Office said in a statement that it plans to distribute Solar for All grants to “competitively selected project partners to help administer the program.” Funded projects will range from directly paying for an entire installation to providing revolving loans and offering tax or other incentives to developers.

The individual grants were part of an overall $7 billion package announced nationwide Monday. The state energy office said contracts with the EPA won’t end until later this year, and then it could take another year for Colorado to plan and launch the program.

Another Colorado-based entity won a similar $156 million grant to focus on spreading rooftop and community solar on tribal lands across the country. Oweesta Corp., a Longmont-based nonprofit, will distribute the money for solar construction alongside community development financial institutions already working with tribal governments on economic projects, the EPA said.

Colorado bill will help community solar catch up

The large federal grant for Colorado was obtained with the help of supporters of a 2024 state bill that, if passed, aims to spur the development of new community solar projects in the state.

With a community solar garden, a for-profit or nonprofit developer creates a series of a few megawatts of open space within a community. Resident subscribers get a monthly discount on their energy bill and the developer connects to the grid and sells the energy to Xcel or the local power company. Several assistance programs may provide free or discounted subscriptions to income-qualified residents.

“Other markets across the country are generating more than 100 to 200 megawatts a year of community solar,” said Kevin Cray, senior regional director of policy and government affairs for the Coalition for Community Solar Access. “Colorado, which has the oldest program, has generated about 170 megawatts in the last 12 years, or about 14 megawatts a year. “I think there have been some systemic issues with the program that have really limited its success.”

“Other markets across the country are generating more than 100 to 200 megawatts a year of community solar,” said Kevin Cray, senior regional director of policy and government affairs for the Coalition for Community Solar Access. “Colorado, which has the oldest program, has generated about 170 megawatts in the last 12 years, or about 14 megawatts a year. “I think there have been some systemic issues with the program that have really limited its success.”

Senate Bill 207:

• Reiterate requirements for investor-owned utilities to accommodate connections to new community solar projects.
• Reserve at least 51% of community solar projects for income-qualified residential subscribers.
• Offer income-qualified residential customers a 25% discount on the bill credit, increasing up to 50% with federal tax credits.
• Adopt more efficient subscriber enrollment methods and consumer protections.
• Grant authority to the Public Utilities Commission to evaluate community solar program requirements in 2028.

“If you look at the newer community solar programs, their bylaws are much stronger,” Cray said. The bill provides “very clear guidance to the commission on how they want the programs to operate.”

The bill’s provisions would simplify the paperwork on what subscribers must show to demonstrate income qualification, while also making the utility side of things easier by reforming interconnection rules for solar gardens and ensuring that utilities provide accommodation capacity for the new energy.

“Break down some of those barriers,” Cray said.