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AIColorado Solarby Discovery Clean Energy

Colorado utility guide

Solar & batteries with Xcel Energy (Public Service Company of Colorado)

If you live in Denver, Boulder, Lakewood, Golden or most of the Front Range suburbs, your solar economics are set by Xcel Energy. Xcel still credits exported solar against future use and lets credits roll forward, which keeps rooftop solar simpler here than in Fort Collins or Longmont. What changed is the evening: since November 2025 most Xcel homes pay about 2.7 times more for power from 5 to 9 pm on weekdays, and Xcel has twice cut power to tens of thousands of customers to prevent wildfires. Those two facts are why nearly every Xcel conversation we have now includes a battery.

Investor-owned112 Colorado communities on the state map

Utility type

Investor-owned utility

How exports are credited

Exports banked 1:1 as kWh credits

System size limit

State statute allows up to 200% of expected annual use; Xcel’s installer FAQ cites 120% of prior 12-month use — confirm against the current tariff.

Net metering, in plain English

Xcel is an investor-owned utility, so Colorado’s full net-metering statute (C.R.S. 40-2-124) applies. Excess solar becomes a credit that carries forward month to month with no expiration, and once a year you can ask Xcel to cash out accumulated credits at its average hourly incremental cost — a rate well below what you pay — or leave them banked. Because the cash-out rate is low, a system sized close to your annual use earns more than an oversized one.

Time-of-use: Since November 1, 2025, time-of-use is the default for Xcel residential customers with smart meters (you can opt out to a flat rate). On-peak runs 5–9 pm on non-holiday weekdays all year, with a June–September summer season, and on-peak energy costs about 2.7 times off-peak. Check your bill for the exact cents per kWh.

Sources & dated facts

  • C.R.S. 40-2-124 applies to investor-owned utilities: credits carry forward indefinitely; an optional year-end cash-out is paid at the utility’s average hourly incremental cost.As of Sep 23, 2026
  • Wildfire public safety power shutoffs: about 50,000 customers in December 2025 (Boulder, Clear Creek, Jefferson, Larimer, Weld counties); about 18,000 on 2026-03-14 (mostly Boulder County).As of Sep 23, 2026 · source
01

What Xcel territory looks like for solar

Xcel serves Denver and most of the metro, Boulder, much of Jefferson County, and pockets across the state, but not everywhere on the Front Range. Fort Collins, Loveland, Longmont and Colorado Springs run their own city utilities, and co-ops like CORE and United Power serve much of the suburban fringe. Before we design anything, we confirm the utility on your actual bill; neighbors across a street can be on different systems.

Inside Xcel territory, rooftop solar economics are fairly forgiving: exports earn kWh credits that roll forward, so summer surplus covers winter shortfall. The main mistake we see is oversizing. Credits you never use get cashed out at a low wholesale-style rate, so every panel beyond your yearly usage earns very little.

02

Time-of-use changed what a battery is for

Before late 2025, a battery on an Xcel home was mostly insurance. Now most Xcel homes with smart meters are on time-of-use by default, with weekday evenings from 5 to 9 pm priced about 2.7 times higher than off-peak. That window lands right after rooftop panels fade, which is exactly when a charged battery can carry the house.

The honest caveat: shifting one evening’s usage saves real money, but not battery-sized money. On the price spread alone, a whole-home battery takes a long time to pay back. The case gets stronger when you stack it with backup value, the state’s 10% battery tax credit (tax years through 2026), and Renewable Battery Connect if it’s funded when you apply.

03

Public safety power shutoffs are now a real planning factor

Xcel de-energized about 50,000 customers across Boulder, Clear Creek, Jefferson, Larimer and Weld counties in December 2025 to reduce wildfire risk, and about 18,000 more — most of them in Boulder County — in March 2026. Outages of this kind have lasted from a day to three days or more.

A standard grid-tied solar system shuts off when the grid does; that’s a safety requirement, not a flaw. To keep lights, a furnace blower, a well pump or medical equipment running through a shutoff, you need a battery or a bidirectional EV setup with a transfer switch. If you live in the foothills or along the Boulder–Jefferson wildland edge, that’s the first thing we’ll talk about.

04

Rates are moving up, slowly

Xcel’s residential rates have been rising through rate cases, and a 2026 case added a few dollars a month to a typical residential bill. We don’t build quotes on aggressive rate-escalation assumptions — a solar system should make sense at today’s rates, with future increases treated as upside.

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.

Renewable Battery Connect

Open

Xcel pays an upfront incentive for a home battery paired with solar, in exchange for letting Xcel draw on part of the battery a limited number of times each year for five years. The 2026 round reopened on May 21, 2026, but the published incentive amounts disagree from source to source, so we confirm the current figure on Xcel’s portal before we quote it.

  • 2026 Renewable Battery Connect reopened on 2026-05-21 with a renewed budget.(source)
Program page

Solar*Rewards (residential)

Status unconfirmed

Xcel’s long-running residential solar incentive has been reported as sunset for new residential applicants. We don’t count on it in any quote unless Xcel’s site shows it open for your system size.

    Residential EV charger wiring rebate

    Status unconfirmed

    Xcel has offered a rebate toward the wiring for a home Level 2 charger when you enroll in one of its EV charging programs, with a larger amount for income-qualified households. Amounts and enrollment rules change; confirm before you rely on it.

      FAQ

      Questions we hear

      How do I know if I’m an Xcel customer?

      Look at the name on your electric bill. Many Front Range addresses are served by city utilities (Fort Collins, Loveland, Longmont, Colorado Springs) or co-ops (CORE, United Power, Poudre Valley REA), even when a neighboring town is on Xcel.

      Can I opt out of Xcel’s time-of-use rate?

      Yes. Time-of-use is the default for residential customers with smart meters, but you can opt out to a flat rate. If you have solar and a battery, time-of-use often works in your favor; if you can’t shift evening use, flat may be simpler.

      What happens to my solar during an Xcel power shutoff?

      A grid-tied system without storage turns off when the grid goes down, to protect line crews. You need a battery or a bidirectional EV setup to keep power on.

      Does Xcel charge a fee to connect solar?

      Interconnection requirements and any fees depend on system size and are set in Xcel’s tariff. We handle the application and tell you up front if your project triggers anything beyond the standard residential process.

      Why is my Xcel bill still not zero after going solar?

      You still pay fixed monthly charges, and on time-of-use your evening usage is priced higher than the midday power your panels export. Solar reduces what you buy; it doesn’t erase the connection costs.

      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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