Colorado · Performance incentive
Xcel Energy Solar*Rewards
Pays residential solar owners in Colorado based on actual output -- see the rate, eligibility, and how it changes payback below.
- $0.035/kWh for 10 ye…
- stated benefit
- Residential
- eligible customers
- 12.3 yr
- Colorado baseline payback
- 4
- other Colorado programs
What it means
In Colorado, a 6 kW system already pays back in about 12.3 years on ~$1,368/year of modeled savings, and the Xcel Energy Solar*Rewards stacks on top of that, on top of any federal credit.
- $0.035/kWh for…
- stated benefit
- 12.3 yr
- baseline payback (pre-incentive)
- 5
- Colorado programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Xcel Energy pays performance-based incentive for excess generation over 10-year term.
Program at a glance
- Program type
- Performance incentive
- Eligible customers
- Residential
- Stated benefit
- $0.035/kWh for 10 years
- State electricity rate
- 14.2¢/kWh
- Colorado solar score
- 45/100
How Colorado compares to the U.S. average
Why this incentive matters more (or less) here - Colorado's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Colorado
The market this incentive operates in: total installed solar capacity in Colorado reported to the EIA.
Colorado's solar incentive stack
How this performance incentive sits among Colorado's 4 tracked programs, by type
- Tax exemption
Tax exemption
2 programs
- Net metering
Net metering
1 programs
- Performance
Performance
1 programs
What this shows Colorado tracks 3 incentive types, 1 of them performance-based like this one -- paid on actual output rather than a one-time credit, stacking with the state's other program types.
How this incentive fits Colorado's solar picture
The Xcel Energy Solar*Rewards pays based on actual measured generation rather than a one-time credit, one of Colorado's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of $0.035/kWh for 10 years. 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 performance incentive delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. 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, CO Net Metering. 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.
Your next step
- See Colorado's full solar profile, score, irradiance, rates, payback, and every program you can claim. Colorado solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Colorado incentives
Frequently asked questions
What is the Xcel Energy Solar*Rewards?
How does the Xcel Energy Solar*Rewards work?
Who is eligible for the Xcel Energy Solar*Rewards?
How does this incentive affect solar ROI in Colorado?
Are there other solar incentives in Colorado?
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.