Federal solar credit ended Dec 31, 2025
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Net metering · Colorado

Colorado Net Metering and Solar Export Credits

Updated Data verified Nov 5, 2026

Net metering. Xcel Energy must offer net metering: exports offset your bill at the full per-kWh energy rate, and leftover credits either roll over indefinitely (Continuous Rollover, cannot be cashed out) or, by default, are paid out once a year at Xcel's low average hourly incremental cost (about 1.5 cents/kWh in 2023). SB21-261 (2021) made indefinite carry-forward the rule unless the customer chooses annual reimbursement or donation.

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What Xcel Energy pays for exported solar

For a new rooftop system, Xcel Energy credits exported energy at about 1.53¢ per kWh[1], against an average Colorado residential price of 16.80¢[2]. Exports first offset what you use over each year at the retail rate; this rate applies only to the surplus left over.

Other Colorado utilities, co-ops and municipal utilities set their own rates; check your utility's current tariff.

State rules that apply

  • What the rule says: “Any excess generation from your net metered PV system will be multiplied by the prevailing total energy rate (base energy rate plus riders assessed on a per kWh basis)”[1]

What it means for sizing and batteries

When exports earn close to the retail price, sizing the system to cover your yearly use is usually the best value, and a battery is mainly for backup rather than savings.

The calculator uses the statewide rule until we add utility rates. See what solar costs in Colorado.

FAQ

Frequently asked questions

Does Colorado have net metering?

Xcel Energy must offer net metering: exports offset your bill at the full per-kWh energy rate, and leftover credits either roll over indefinitely (Continuous Rollover, cannot be cashed out) or, by default, are paid out once a year at Xcel's low average hourly incremental cost (about 1.5 cents/kWh in 2023). SB21-261 (2021) made indefinite carry-forward the rule unless the customer chooses annual reimbursement or donation.

sources

[ 2 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. Xcel Energy Colorado Solar Bank Election Form (17-9178, 02-24)xcelenergy.com · checked Nov 5, 2026
  2. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026

Tariffs last re-checked November 5, 2026.

Change log

  1. What the rule says updated to “Any excess generation from your net metered PV system will be multiplied by the prevailing total energy rate (base energy rate plus riders assessed on a per kWh basis)” (Xcel Energy Colorado Solar Bank Election Form (17-9178, 02-24)).