Size to your usage, not to your roof
Xcel banks your excess solar as kWh credits that roll forward without expiring, which is generous. But when credits pile up beyond what you use, the only way to monetize them is a year-end cash-out at Xcel’s average hourly incremental cost — far below the retail price you pay. We size to roughly 100% of your last 12 months, plus planned loads like an EV or a heat pump.
There’s a size-cap question we check on every project: Colorado law allows up to 200% of expected use, while Xcel’s installer guidance has cited 120%. It rarely matters for a home sized to its own usage, but it matters if you’re planning to electrify.
Time-of-use and solar
On Xcel’s default time-of-use rate, your panels produce most in the middle of the day, when power is cheapest, and fade before the 5–9 pm on-peak window. Solar still offsets your kWh, but it doesn’t touch the priciest hours unless you shift usage or add storage. We model your savings on your actual rate plan rather than a blended average.
Owning vs. leasing after the federal credit
Owned systems finished after December 31, 2025 no longer qualify for the §25D homeowner credit. Leases and PPAs can still carry federal credit value because the system owner may claim §48E, provided the system is placed in service by December 31, 2027. We price cash, loan, lease and PPA side by side; for many Xcel households with modest bills, the lease or PPA is the stronger option. Terms verified as of September 2026 — confirm with your tax advisor.
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
FAQ
Questions we hear
Does Xcel still pay full retail for my extra solar?
Xcel credits exported solar as kWh credits that offset future usage and roll forward indefinitely. What you don’t use can be cashed out once a year at Xcel’s average hourly incremental cost, which is much lower than retail. So yes for what you use, no for true surplus.
How big a system will Xcel let me install?
State law allows systems sized up to 200% of expected annual consumption, but Xcel’s installer materials have cited 120% of your prior 12 months. We check the current tariff for your project; most homes sized to their own usage fit either way.
Is it too late for Xcel’s Solar*Rewards incentive?
Residential Solar*Rewards has been reported as closed to new applicants. We don’t include it in quotes unless Xcel’s site shows it open for your system.
Does time-of-use make solar less valuable on Xcel?
It shifts where the value sits. Solar still offsets your kWh, but the costliest 5–9 pm hours come after most production. Solar plus a battery, or moving flexible loads like EV charging and laundry off the evening peak, captures more of it.