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Colorado net metering: how Xcel Energy credits your solar in 2026

Colorado net metering explained: credit rates, interconnection steps, and what Xcel Energy and Black Hills Energy offer Colorado solar owners.

~$0.15–$0.17/kWh
Net metering rate
Xcel
Main utility
Full retail
Credit type
6–10 wks
Interconnect time

Xcel Energy’s net metering program is the financial backbone of Colorado residential solar. With full retail-rate credits and 300+ annual sun days producing strong system output, Colorado homeowners have one of the most productive net metering situations in the country — even at Xcel’s relatively modest $0.15–$0.17/kWh rate.

How Xcel Energy net metering works in Colorado

Xcel credits excess solar at the full retail rate monthly. Unused credits carry forward. Annual surplus credits may be compensated at a lower avoided-cost rate per your interconnection agreement. Xcel’s interconnection process for residential systems: 6 to 10 weeks from application to permission to operate. Black Hills Energy (Pueblo area) has a separate net metering program; contact Black Hills for current terms. Rural Colorado homeowners may be served by electric cooperatives — co-op net metering terms vary; contact your co-op directly.

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Colorado net metering: common questions

Does Colorado have net metering in 2026?
Yes. Colorado requires investor-owned utilities to offer net metering for residential solar. Xcel Energy offers full retail-rate net metering. Black Hills Energy serves the Pueblo area with its own net metering program.
What is Xcel Energy's net metering rate?
Xcel Energy credits excess solar at ~$0.15–$0.17/kWh in 2026. Credits roll forward monthly and are reconciled annually.
How long does solar interconnection take in Colorado?
Typically 6–10 weeks for a residential system from application to permission to operate. Your installer handles the application.
Is solar worth it in Colorado with net metering?
For most Colorado homeowners who own their home with good sun exposure, yes. Colorado's 300+ annual sun days and 5.0–6.0 peak hours produce more solar per dollar of system cost than any Northeast state. Payback runs 7–10 years.
Does the federal solar credit still apply in Colorado in 2026?
No. The 30% federal residential solar tax credit expired at the end of 2025.

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