The Colorado Homeowner’s Guide to Going Solar with Xcel Energy

The state of Colorado has two major investor-owned utilities, Xcel Energy being one of them. Offering service across eight different U.S. states, Xcel is one of the biggest names in electric and gas utilities.

Xcel Energy not only provides power to homes and businesses, but it is also an industry leader in delivering renewable energy and reducing carbon emissions. In fact, Xcel Energy was actually the first major U.S. utility company to announce its vision to provide customers with 100% carbon-free electricity. 

Xcel Energy offers plenty of resources for customers looking to go solar. This aligns perfectly with Colorado’s goal to be 100% carbon-free by the year 2050. 

For current or prospective Colorado residents, here’s what you can expect from becoming an Xcel Energy customer – and the perks of going solar with them. 

What Colorado residents should know about Xcel Energy

Before getting into the solar side of things, what is it like to have Xcel Energy as your electricity provider? 

Cost

Most residents go on the general residential rate plan. This plan bills you on a seasonal flat rate. The current monthly energy charge rate is $0.08 per kWh during the summer season and $0.07 per kWh during the winter season. Additional monthly charges also apply. 

Using the average kWh consumption of residential customers in Colorado, the average electric bill with Xcel Energy’s rate should be between $67 and $76 per month. Compare this with Black Hills Energy, Colorado’s other major investor-owned utility. Their residential rate racks up a monthly electric bill between $81 and $113.

Switching to solar can dramatically reduce this monthly amount, or even eliminate it completely in some cases!

Billing

It’s important to know how to read your electricity bill so you know exactly what you’re being charged for. For Xcel Energy customers, you are billed based on your kWh consumption along with other fees such as service and fuel charges. 

Aside from a general residential rate, Xcel Energy also offers a time-of-use rate plan. Under this plan, the rate at which you pay your electric bill changes based on certain hours of the day, known as on-peak and off-peak hours. So, you can strategically plan to consume electricity during hours of the day when the rate is at its lowest. 

There are multiple ways to pay your bill each month. You can enroll in automatic billing, pay by phone, by mobile app, through your online account, or in person at your nearest pay station. 

Interconnection process

To have your home hooked up to the power grid through Xcel Energy, you must submit an interconnection application. Your proposal will be reviewed and eventually approved unless there is any further inspection required. 

After the fast approval process and signing of contracts, representatives from Xcel will coordinate to build out of any facilities in their system. Once this process is complete, you will receive a permission to operate (PTO) letter from Xcel.

Colorado residents: How much money can you save with solar?

Going solar with Xcel Energy seems like a sweet deal – but how much do you actually save?

Using a 6.4 kW system in Denver as an example, the average Xcel Energy solar customer in this city can save an average of $60 to $70 per month, depending on the season. 

There are many factors that will affect your savings, like the weather, your system size, and your monthly consumption. So, it’s tough to pinpoint exactly how much you’ll save. Taking into account the average monthly electric bill in Colorado, having solar panels can completely offset your bill in some cases. All in all, electric bills do add up, so going solar with Xcel Energy can help keep money in your pocket each month. 

What is Xcel Energy’s net metering policy in Colorado?

One of the best incentives for going solar is when states offer a good net metering policy to get compensated for any excess energy your solar system produces. 

Xcel Energy offers net energy metering to all eligible solar customers. Solar customers in Colorado can look forward to having any excess energy generated by their system compensated at a value determined by multiplying the excess energy by Xcel’s total energy rate during that time period. 

Xcel customers also have the option to fill out a Solar Bank Election Form, which gives the customer the decision to either have continuous rollover credits on a month-to-month basis or to waive this decision and let your credits build each month and then cash out at the end of the year. 

Are there any programs or incentives for Xcel Energy solar customers in Colorado?

There sure are! Since Xcel Energy prides itself on contributing to a more sustainable future, it offers multiple incentive programs to solar customers as part of its Solar*Rewards to ensure that going solar is easier than ever!

Residential Xcel Energy incentives in Colorado

Bottom line: Should Colorado residents go solar with Xcel Energy?

To get the most out of your solar system, it's imperative that you live in an area where you can take advantage of incentives and also receive good sun exposure so your system gets put to good use. Colorado is considered one of the better places to invest in a solar system in the U.S.

For customers of Xcel Energy living in Colorado, going solar is made easier. Being the largest investor-owned utility in the state, residents serviced under Xcel Energy have open access to a variety of solar incentives that contribute to their future goal of providing customers with 100% carbon-free electricity. 

The main downside to going solar with Xcel Energy is their low electricity rates. Since electricity with this company is relatively cheap, people might be willing to pay a smaller monthly bill rather than spend thousands of dollars on a solar system. However, with all of the perks they offer, Xcel Energy might be able to change people’s minds—especially when it comes to reaching lower-income customers. 

Put your home details into our solar calculator to find out if investing in solar is the right choice for you!