Xcel Energy Solar*Rewards

The Xcel Energy Solar*Rewards is a performance incentive 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 $0.035/kWh for 10 years. 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 performance incentive delivers compresses that payback further and improves 25-year net returns, currently modeled at roughly $17,400 before accounting for the Xcel Energy Solar*Rewards 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, CO Net Metering. 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.