CO Net Metering

The CO Net Metering is a net metering tracked in the federal DSIRE database as one of Colorado's solar policy levers. Eligibility is scoped to residential customers, with a stated benefit of Retail rate credit. The program does not carry a scheduled sunset in DSIRE, though appropriations and enabling legislation can still be revised year to year. Like every state-level incentive, it is designed to stack on top of the federal 30% Investment Tax Credit rather than replace it.

Layered onto Colorado's underlying economics, this matters more than it might look in isolation. The state averages 5.5 kWh/m²/day of usable sunlight and residential rates of 14.2¢/kWh, producing an estimated 9,636 kWh/year and $1,368 in annual utility offset on a typical 6kW system costing $16,800. Without incentives that baseline already implies a 12.3-year simple payback — every dollar this net metering delivers compresses that payback further and improves 25-year net returns, currently modeled at roughly $17,400 before accounting for the CO Net Metering itself.

This program is not the only option. Colorado has 5 solar incentive programs indexed in DSIRE, including adjacent options like CO Renewable Energy Sales Tax Exemption, CO Residential Renewable Energy Property Tax Exemption, Xcel Energy Solar*Rewards. The state's net metering policy is classified as full, which governs how excess generation is credited and often determines whether a given program is worth claiming for a specific household. Before applying, verify current terms on the official program page, confirm your utility participates, and consult a qualified tax professional about how state credits interact with the federal ITC on your return.