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AIColorado Solarby Discovery Clean Energy

Batteries × Black Hills

Do Home Batteries Pay Off With Black Hills Energy (Colorado Electric)?

Black Hills pays up to $1,000 toward a battery paired with solar ($100 per kW). That’s helpful but small next to a $15,500–$19,000 battery, so on bill savings alone storage rarely pays back quickly here. The real reasons to add one are backup and Colorado’s 10% battery credit, which ends after tax year 2026.

Buy it for backup; the rebate and 2026 state credit soften the cost but don’t make it a moneymaker.
01

What the $1,000 rebate covers

The rebate is $100 per kW of a solar-paired battery, capped at $1,000, for both income-qualified and general customers. Whole-home batteries tend to be large enough that the cap is what you’d see, but we confirm how Black Hills measures kW before putting a number in your quote.

02

Stacking the state credit before it ends

Colorado’s residential battery income-tax credit is 10% of the purchase price (equipment, sales tax and freight; labor and permits excluded) for tax years through 2026. Combined with the Black Hills rebate and the state sales-tax exemption on batteries, the net cost drops noticeably — but only for batteries bought in 2026 or earlier. As of September 2026; verify with your tax preparer.

03

When a battery is the wrong buy

If your power rarely goes out and your bill doesn’t penalize evening use, a battery mostly sits full. In that case, we’ll tell you to spend the money on panels instead, or wait.

Utility type

Investor-owned utility

How exports are credited

Exports banked 1:1 as kWh credits

System size limit

Up to 200% of reasonable and expected annual consumption.

Net metering, in plain English

As an investor-owned utility, Black Hills follows Colorado’s full net-metering statute. Excess solar is added to your banked energy for future months, and the system can be sized to supply up to 200% of your reasonable expected annual use.

Sources & dated facts

  • Systems may be sized to supply no more than 200% of the customer’s reasonable and expected annual electricity consumption; excess energy is added to banked energy for future months.As of Sep 23, 2026 · source
  • Application fees: $380 for systems up to 25 kW AC; $760 for 25 kW to 1 MW.As of Sep 23, 2026 · source

FAQ

Questions we hear

Does Black Hills Energy offer a battery rebate?

Yes — $100 per kW for storage paired with solar, up to $1,000, under the 2023–2026 program. Verify current terms before you buy.

Can I get the Black Hills battery rebate without solar?

The rebate is for paired storage, meaning a battery installed with a solar system in the program. Standalone batteries may still qualify for the state tax credit.

Is a battery worth it in Pueblo on Black Hills?

If backup matters to you — medical equipment, a home office, a freezer full of food — often yes. On bill savings alone, usually not quickly.

Get honest numbers for your roof

Our Colorado crew looks up your utility’s current rules, models your roof, and tells you straight — including when solar or a battery won’t pay off.

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