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Solar incentives in Colorado
What is actually on offer here in 2026 — the state incentive, the federal position, and the export rule, which is usually worth more than either.
The state incentive
Sales tax exemption; local rebates. No state credit. Xcel Solar*Rewards pays roughly $0.02/kWh for about 10 years.
The federal position
§25D, the 30% residential credit, expired for systems placed in service after 31 December 2025 — installed, not merely purchased. §48E did not expire on that schedule, and a company owning panels on your roof under a lease or PPA can still claim it. That asymmetry, not anything specific to Colorado, is the largest single change in residential solar economics. The detail, with sources.
Rate schedules and export rules
What your surplus earns is set here, and it is where two identical systems a mile apart stop being comparable.
Xcel Energy Colorado — Residential TOU (default)
TOU is the default residential rate in Colorado. Full retail net metering, still. Fixed charge $8.50/month.
Summer On-peak $0.24, Shoulder $0.14, Off-peak $0.10.
Winter On-peak $0.20, Shoulder $0.13, Off-peak $0.10.
Exports: full net metering — every exported kilowatt-hour is credited at the same retail price you pay to import one.
Source: Xcel CO residential TOU, Sheet 33B, Proceeding 24AL-0377E
Production in Colorado
| City | kWh per kW / year | 7 kW system |
|---|---|---|
| Denver, CO | 1,513 | 10,592 |
Policy changes affecting Colorado
- The 30% residential solar credit is gone. What replaced it is not a credit.The 4 July begin-construction deadline has passed. What that means for commercial projects.Net billing is the default now, and it changes what a solar panel is for
Work out your own number
Credits are the easy part. What decides payback is how much of your own production you use versus export, hour by hour, against the schedules above.
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