Solar savings & payback in Colorado
Colorado runs about 16¢/kWh with full retail net metering (1:1). Enter your bill for a payback estimate tuned to local rates and sun, no federal tax credit assumed (it expired at the end of 2025).
- Avg electricity rate
- 16¢/kWh
- Solar generation
- ~4.5 kWh/kW/day
- Net metering
- Full retail net metering (1:1)
- Export credit
- Full retail (1:1)
State incentive: Xcel Solar*Rewards and local rebates; strong high-altitude sun.
Where your money goes
Your 25-year money curve
What the planet gets
Net metering credits exported power against what you draw from the grid. Rates vary by state, California's NEM 3.0 pays much less for exports than 1:1 states.
Enter a valid monthly bill and tariff greater than zero to see your results.
How Colorado compares to the US average
Three numbers decide most of your payback. Here's where Colorado sits against the national picture.
Electricity rate
16¢/kWh
US average: 17¢/kWh
Cheaper power means each solar kWh saves less
Solar generation
~4.5 kWh/kW/day
US average: ~4.5 kWh/kW/day
More sun per panel than the US average
Typical payback
10.7 years
US average: 10.6 years
Slower than the US average on a $150 bill
Solar cost & savings by system size in Colorado
Computed with Colorado's rate (16¢/kWh), sun (~4.5 kWh/kW/day), and full 1:1 net metering, at the 2026 national benchmark of ~$2.75/W with no federal credit.
| System size | Installed cost | Generation/mo | Annual savings | Payback |
|---|---|---|---|---|
| 4kW | ~$11,000 | ~540 kWh | ~$1,037 | ~10.6 yrs |
| 6kW | ~$16,500 | ~810 kWh | ~$1,555 | ~10.6 yrs |
| 8kW | ~$22,000 | ~1,080 kWh | ~$2,074 | ~10.6 yrs |
| 10kW | ~$27,500 | ~1,350 kWh | ~$2,592 | ~10.6 yrs |
Savings assume a home large enough to use this output. Figures last reviewed July 2026,size a system from your actual bill instead.
How exports are paid in Colorado
Full retail net metering statewide.
Policies change often, always confirm current rules with your utility or at DSIREbefore deciding.
City-level calculators in Colorado
Sun varies within the state, these pages tune the generation estimate to each metro's solar resource.
Colorado solar FAQs
Is solar worth it in Colorado in 2026?
For a typical $150/month bill, we estimate a Colorado system pays for itself in about 10.7 years, with no federal tax credit assumed (the residential credit expired at the end of 2025). At 16¢/kWh with full retail net metering (1:1), the case is workable but depends on your roof, usage pattern, and quotes.
How much does a solar system cost in Colorado?
At 2026 benchmark prices (~$2.75/W), a 6kW system runs about $16,500 installed, generating roughly 810 kWh a month in Colorado's sun. Local quotes vary 20-40% between installers, so always collect several.
What is the net metering policy in Colorado?
Full retail net metering statewide.
Does Colorado have a state solar incentive?
Xcel Solar*Rewards and local rebates; strong high-altitude sun. Since the federal residential credit ended in 2025, state and utility incentives are the main upfront help available.
How many solar panels do I need in Colorado?
A 7 kW system suits a typical $150/month bill in Colorado, that's roughly 17 modern 425W panels needing about 455 sq ft of unshaded roof. Enter your own bill in the calculator above for a precise size.