Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Updated October 14, 2026.
A typical Colorado home system is 7 kW and costs about $21,140 in cash at $3.02 per watt. In our two worked cases it pays back in 12.3 to 16.8 years. State law credits extra solar power one for one, but unless you choose rollover, Xcel and Colorado Springs pay about 2¢ or less for kWh left at year end.
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Under state law, a kWh you send to the grid earns a credit for a kWh you use later. So every kWh your panels make is worth about the same, whether your home uses it at once or not.
| Utility and credit rule | Year-one savings | After upkeep and new charges | Simple payback |
|---|---|---|---|
| One for one at 16.58¢ (state law, C.R.S. 40-2-124): Xcel, Black Hills, co-ops, Colorado Springs today | $1,922 | $1,712 | 12.3 years |
| Colorado Springs Utilities, new agreement from April 1, 2027 (utility’s estimate of about $38 a month more) | $1,922 | $1,256 | 16.8 years |
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All of them credit extra solar power during the year. What changes is what they do with leftovers, what they cap and what they pay toward the system.
Colorado’s largest electric utility: Denver, Boulder and many other towns. Leftover credits are paid out each year end at its average hourly cost of power, last printed as 1.529¢ (2023), unless you choose rollover.
Next: decide rollover or payout before December 1.
Owned by the city. One-for-one credits today, paid out on the January bill unless you made the one-time rollover choice. $100 application fee. New plans for agreements dated from April 1, 2027.
Next: ask which date your agreement will carry.
Every co-op, and every city utility with 5,000 or more customers, must carry extra kWh forward for home systems of at least 10 kW. Each sets its own year-end payout.
Next: get the year-end rate and size limit in writing.
| Utility | Leftover kWh at year end | Size limit | Money toward the system |
|---|---|---|---|
| Xcel Energy | Paid at its average hourly cost (1.529¢ in 2023), or rolled over if you choose | Ask Xcel | $3 per watt for income-qualified homes; $250 per kW for a battery |
| Black Hills Energy | Rolled forward, or paid each year end if you choose it in writing; rate not published | Ask Black Hills | Ask Black Hills |
| Colorado Springs Utilities | About 2¢ on the January bill, or one-time rollover | 200% of yearly use, up from 120% | None; $100 application fee |
| Holy Cross Energy | Netted each month; ask for its year-end rule | 200% of the past 12 months | $100 per kW on up to 25 kW; battery up to $12,500 |
| CORE Electric | Paid or credited within 60 days after the April billing cycle, at its average avoided cost | Net metered up to 10 kW AC | Ask CORE |
| United Power | Cashed out once a year, April to March, at its wholesale energy rate | 200% of yearly use | No rebate |
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A leftover kWh worth about 16.58¢ on your bill pays about 2¢ or less in cash at Xcel and Colorado Springs. That is why a Colorado system should be sized to the power you use, not past it.
Per leftover kWh, the latest year printed on its election form (2023).
On the January bill. 1,000 kWh earn about $20. Its rollover choice is one-time and cannot be undone.
After the April billing cycle, at its average avoided cost for the year before.
Leftovers are cashed out once a year at its wholesale energy rate.
State law gives Xcel and Black Hills customers both paths: credits that roll forward, or a year-end payment at the utility’s average hourly cost, chosen in writing. Black Hills does not publish its payout rate online; ask for it in writing.
The City Council approved them on September 22, 2026. A solar home with a new agreement picks one of two plans, and the utility estimates either adds about $38 a month to the bill.
The utility’s estimate for either plan, using 2027 rates. That is about $456 a year.
A system may cover up to twice your yearly use, up from 120%.
Agreements dated before April 1, 2027 keep today’s rates until then.
The utility says a net metering agreement does not guarantee future rate structures.
The September 2026 benchmark, $0.13 above the US average. These are modeled cash prices for solar only, not quotes we collected.
| Size (kW DC) | Cash price | Power made a year |
|---|---|---|
| 5 kW | $15,100 | 8,280 kWh |
| 7 kW (typical) | $21,140 | 11,592 kWh |
| 8 kW | $24,160 | 13,248 kWh |
| 10 kW | $30,200 | 16,560 kWh |
Colorado pays little toward panels on a typical roof. The cash goes to home batteries and to income-qualified Xcel homes.
Of a home battery’s purchase price, through tax year 2029. A $10,000 battery earns $1,000.
Renewable Battery Connect, once, per kW of battery power ($1,000 for income-qualified homes). Ask whether spots are open.
Solar*Rewards, on up to 10 kW AC, from a $1,000,000 budget for 2026. Other Xcel homes get no solar rebate.
On up to 25 kW, capped at 40% of the installed cost. A 7 kW system gets $700.
| Way to pay | Who owns the panels | Colorado rule to check |
|---|---|---|
| Cash | You | No state sales tax on the equipment; your year-end credit choice is yours |
| Loan | You | Cash versus financed total; a dealer fee adds years |
| Lease | The company | Panels stay free of property tax, even when a company owns them; check the yearly increase and buyout |
| PPA | The company | Price per kWh against the 16.58¢ state average, and how it rises |
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Colorado incentives guideWhat $0-down solar means in Colorado
Four companies that list Colorado service, A to Z, not ranked. Facts from their own sites; license status from Colorado’s licensing data, read October 14, 2026.
None of these four companies buys homeowner leads from EcoGen America, and none carries our Verified badge yet. How we make money. What the Verified badge means.
Ask each installer to name your utility and size the system to a year of your bills.
Run a Colorado solar evaluationEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. Privacy policy
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology