Who Black Hills serves
Black Hills Energy’s Colorado electric territory is centered on Pueblo and parts of the Arkansas Valley. Nearby towns like La Junta, Lamar and Trinidad run their own municipal utilities, and rural areas may be on a co-op like San Isabel, so we confirm the utility on your bill before we design.
The production incentive: what it’s worth
The general production incentive is $0.0025 per kWh — a quarter of a cent. On a system producing around 8,000 kWh a year, that’s roughly $20 a year. It’s real money, but it won’t change whether solar pays off for you, and we won’t pretend it does.
The income-qualified track is a different story. A $1-per-watt rebate takes a large bite out of a $2.80–$3.25 per-watt system, and $0.038 per kWh in production payments adds up to meaningful money over the years. If your household may qualify, it’s worth checking before anything else.
Batteries on Black Hills
Black Hills pays $100 per kW for a battery paired with solar, capped at $1,000. That helps, but it doesn’t make a $15,500–$19,000 battery pay back on bill savings. The stronger reasons to add storage here are backup and Colorado’s 10% battery tax credit, which covers tax years through 2026.
The 2026 clock
Black Hills’ current incentives come from its 2023–2026 Renewable Energy Standard plan. We haven’t seen the terms for 2027 onward, so if an incentive is part of your decision, apply while the current plan is in force and treat anything after 2026 as unknown.
Rebates & programs
Programs change often. Status shown is what we could confirm on the date listed — always check with the program before you count on it.
Colorado Solar Program — income-qualified / disproportionately impacted
OpenFor qualifying households with systems from 0.5 to 25 kW: a $1-per-watt upfront rebate, a production incentive of $0.038 per kWh, and up to $1,000 for a paired battery.
- IQ/DI participants (0.5–25 kW): $1/W solar rebate; PBI $0.038/kWh; paired storage rebate $100/kW, maximum $1,000.(source)
- Program operates under Black Hills’ Renewable Energy Standard Compliance Plan for 2023–2026; terms for 2027 onward not yet published.(source)
Colorado Solar Program — general residential and small business
OpenFor everyone else with systems from 0.5 to 25 kW: a small production incentive per kWh and up to $1,000 toward a solar-paired battery.
- General participants (0.5–25 kW): PBI $0.0025/kWh; paired storage rebate $100/kW, maximum $1,000.(source)
Colorado Solar Program — commercial (25–250 kW)
OpenCommercial systems from 25 to 250 kW earn a production incentive of $0.02 per kWh.
- Commercial (25–250 kW): PBI $0.02/kWh.(source)
FAQ
Questions we hear
Is Black Hills Energy’s solar program open in 2026?
Yes, as of September 2026 the Colorado solar program shows as open under its 2023–2026 plan. What happens after 2026 hasn’t been published.
How much solar can I put on a Black Hills home?
Up to 200% of your reasonable expected annual consumption. We usually size closer to 100% because surplus beyond your use earns little.
What does the $0.0025/kWh production incentive add up to?
About $2.50 per 1,000 kWh. A typical home system earns tens of dollars a year from it.
What does Black Hills charge to apply for net metering?
$380 for systems up to 25 kW AC and $760 for 25 kW to 1 MW, per the program page as of September 2026.
Does Black Hills pay commercial solar incentives?
Yes — commercial systems from 25 to 250 kW earn $0.02 per kWh produced under the current program.