Colorado

Colorado’s net metering policies and solar incentives are designed to encourage the adoption of renewable energy across the state. Here’s an overview of the major utilities, their net metering programs, state incentives, and the permitting and interconnection processes.

Major Utilities and Their Net Metering Policies

1. Xcel Energy
   • Net Metering Details:
     Offers net metering for residential systems up to 10 kW. Customers receive credits for excess generation at the retail rate, which roll over monthly. At the end of the annual billing cycle, remaining credits are compensated at the average hourly incremental cost.
   • Link
2. Black Hills Energy
   • Net Metering Details:
     Provides net metering for residential systems up to 10 kW. Excess generation is credited at the retail rate and rolls over monthly. Annually, any remaining credits are paid out at the utility’s average hourly incremental cost.
   • Link
3. Colorado Springs Utilities
   • Net Metering Details:
     Offers net metering for residential systems up to 10 kW. Excess generation credits roll over monthly. At the end of the year, remaining credits are compensated at the current cogeneration rate, approximately $0.02 per kWh.
   • Link
4. Fort Collins Utilities
   • Net Metering Details:
     Provides net metering for residential systems up to 10 kW. Excess generation credits roll over monthly. Annually, remaining credits are paid out at the utility’s average hourly incremental cost.
   • Link

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State Incentives

1. Solar for All 
   • Details:
     Colorado Solar For All is an income-qualified program for solar installations.
   • Link
2. Sales and Use Tax Exemption
   • Details:
     Solar systems are exempt from state sales and use tax, reducing the overall cost of installation.
   • Link
3. Local Municipal Incentives and Rebates
   • Black Hills Energy will pay you $0.03 cents for every kWh your solar panels produce for the first 10 years they’re connected to the grid. Your system needs to be 30 kW or smaller, with a20 year warranty on your panels.In exchange, Black Hills Energy will earn the renewable energy credits (RECs) associated with your system—a fair trade, we’d say.  
   • Holy Cross Energy customers can earn an upfront incentive of $250/kW for systems between 0-6 kW,  then $100/kW for systems between 6-25 kW. The funds are available on a first come, first-served basis.
   • Xcel Energy’s Solar*Rewards On-Site Solar program pays out $1,000/kW up to 7 kW for customers who are income qualified or live in a Disproptionately Impacted (DI) community. You’ll need to allow Xcel to claim your RECs for 20 years, which is a fair trade. If you qualify, you’ll receive a check in the mail within 60 days of your system receiving permission to operate.

Depending on where you live, you may be eligible for incentives if you sign a contract through High Country Conservation Center’s Solarize Summit program. If you live in Breckenridge or Silverthorn County, you can earn $1,650 and if you live in Summit County or the Town of Frisco, you can earn $1,500. The program’s installer, Active Energies solar, also provides a 5% discount, up to $1,500, to program participants. However, incentives are only available until June 30, 2024.

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Permitting and Interconnection Processes

General Process:

1. Application Submission: Submit an interconnection application to the utility, including system design and specifications.
2. Review and Approval: The utility reviews the application for compliance with safety and technical standards.
3. Installation: Upon approval, install the solar system according to the approved design.
4. Inspection and Metering: The utility conducts a final inspection and installs a bi-directional meter.
5. Activation: Once all steps are completed, the system is activated, and net metering begins.

Average Timelines:

• Application Review: Typically 10-20 business days.
• Inspection and Metering: Approximately 10 business days post-installation.

Utility-Specific Links for Interconnection:

1. Xcel Energy
   Interconnection Process
2. Black Hills Energy
   Interconnection Guidelines
3. Colorado Springs Utilities
   Solar Interconnection Information
4. Fort Collins Utilities
   Solar Interconnection Process