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DENVER—Cities and counties wouldn’t be able to charge more than $300 for building permits for household solar energy projects under a bill backed by a state Senate committee on Wednesday.

Bill sponsor Sen. Shawn Mitchell, R-Broomfield, told lawmakers that while Denver is charging $59 for a permit other cities in the metro area are charging as much as $1,300, which could discourage homeowners from installing solar systems.

Even with tax credits and rebates, Sen. Chris Romer, D-Denver, said it takes about 12 years for homeowners to see the savings from installing solar panels. He said cities and counties should lower their fees to encourage more people to take on the projects now and then increase the fees to cover their costs once interest grew.

However, Pat Ratliff, a lobbyist for Colorado Counties, Inc., said counties would have to cut from somewhere else to balance their budgets now to do that.

The proposal (Senate Bill 117) would also cap permits at $1,000 for solar projects on commercial buildings. Ratliff said she would work with Mitchell to see those limits would cover the costs.

The bill now heads to the full Senate for a vote.

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