Colorado · Net metering · Deep-stack program

CO Net Metering

Sets the billing terms for excess solar generation sent back to the grid by residential customers in Colorado -- see the credit rate and how it shapes payback below.

Retail rate credit
stated benefit
Residential
eligible customers
12.3 yr
Colorado baseline payback
4
other Colorado programs
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Deep-stack program · early directory

Colorado runs a 5-program DSIRE stack; this net metering is one layer on a 12.3-year modeled baseline, not the whole story.

  • Stack5 programs
  • In-state #1/4
  • Type #4/46
  • Baseline12.3 yr

In-state directory place #1 of 4 (early alphabet). National net metering directory #4 of 46. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

Program description

Investor-owned utilities must offer net metering at retail rate for residential customers.

Program at a glance

Program type
Net metering
Eligible customers
Residential
Stated benefit
Retail rate credit
State electricity rate
14.2¢/kWh
Colorado solar score
45/100

Solar's trajectory in Colorado

The market this incentive operates in: total installed solar capacity in Colorado reported to the EIA.

0 MW500 MW1.0 GW1.5 GW2.0 GW2.5 GW 2007201020132016201920222024 2.4 GW
Colorado now has about 2.4 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Colorado's solar incentive stack

How this net metering sits among Colorado's 4 tracked programs, by type

programs

What this shows Colorado tracks 3 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.

Source DSIRE incentives registry As of 2024

How this net metering layers inside Colorado's deep stack

The CO Net Metering governs how Colorado credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Retail rate credit. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Colorado 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 of annual utility offset on a typical 6 kW system costing $16,800. That baseline already implies a 12.3-year simple payback and a 25-year modeled net of roughly $17,400 before this incentive - every dollar this net metering delivers compresses that payback further.

Colorado bundles a deep incentive stack, so this program rarely stands alone. 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 decides whether a given program is worth claiming for a specific household.

Frequently asked questions

Where does the CO Net Metering sit in Colorado's deep program stack?
The CO Net Metering is a net metering available to residential solar customers in Colorado. The stated benefit is Retail rate credit.
How does this net metering work beside Colorado's other programs?
Investor-owned utilities must offer net metering at retail rate for residential customers.
Who qualifies, and why is this an early in-state directory row?
The program is available to residential customers in Colorado. Check the official program page for current eligibility requirements and deadlines. In-state directory place #1 of 4 (early alphabet).
How does this incentive affect solar ROI in Colorado?
Colorado has an estimated 12.3-year payback for a 6 kW system before incentives, with about $1,368/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Which other Colorado programs stack with this one?
Colorado has 5 solar incentive programs tracked in DSIRE, including CO Renewable Energy Sales Tax Exemption, CO Residential Renewable Energy Property Tax Exemption, Xcel Energy Solar*Rewards. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Colorado solar data · ROI calculator · All incentives.