Solar Net Metering in Colorado: A Comprehensive Guide

Have you ever thought, “Can I lower my electricity bill?” You’re not alone.

What if you could make the numbers on your meter go backward? That’s solar net metering.

You’ve probably seen those cool solar panels on houses, soaking up the sun. But what if they make more power than they use? That’s when solar net metering shines. 

This article helps you understand solar energy in simple words. We’ll explain how it works, why it’s important to people and big companies, and what are the net metering policies in Colorado.

Table Of Contents:



What is Net Metering?

Net metering is a billing mechanism that allows homeowners and businesses to generate their own electricity, typically through solar panels, and sell the excess back to the electric grid. When your solar panels produce more electricity than you use, that excess solar energy is sent back to the grid. Your utility company then credits you for this excess energy, effectively “rolling back” your electricity meter.

Isn’t it fascinating how a simple solar panel installation can turn into a mini power station?



Key Points:

Credit System: You get credited for the excess solar energy you produce.

Roll Back: Your electric meter rolls back, reducing your electricity bill.

Utility Company: The company you sell your excess solar energy to.



How Does Net Metering Work?

Solar panels are just one component of the clean energy system that converts sunlight into electricity.

Solar Panels

Each photovoltaic solar panel is made up of many individual solar cells, which consist of silicone and silver. These cells absorb light & convert it into electron energy.



The inverter converts each volt of DC power into AC power, making it ready to be used throughout your home.




During the day, your solar panels produce more power than you consume.

We do this on purpose.  Your utility provider will track all the excess energy your panels produce so that you can ‘bank’ it for nighttime consumption. Over the entire month, you’ll produce energy credits in the daytime and they will show up on your electric bill as you remain connected. 1696567668_1696567663792



During the night, your home will consume more power than you produce.

Since solar doesn’t produce at night, your utility will provide your home with energy from the accumulated net metering credits your panels produce during the day. Over the entire month, you’ll pull from the ‘banked’ energy credits in the nighttime. The utility will track all the energy consumed so that you’re left with a ‘net’ usage amount at the end of each month.


Key Takeaway:  Solar net metering works like an electricity bank. When your solar panels generate excess power, it goes back into the grid, earning you credits on your utility bill. You can use these credits when production is low or at night, reducing overall strain on resources and lowering bills.



Solar Net Metering in Colorado: A Bright Future Ahead

Net metering is more than just a concept; it’s the mechanism that drives the economic viability of solar for many homeowners and businesses. Especially in places with bountiful sunshine like Colorado. Let’s explore the current landscape and future outlook of net metering in Colorado.


Solar Net Metering Usage by Sector in Colorado

In Colorado, the adoption of Net Energy Metering varies by sector. Let’s check out the stats:


Residential Sector: The Pioneers

With a whopping 65% usage, the residential sector leads the charge. Homeowners are quickly realizing the benefits, from huge savings to a lower carbon footprint. Consider Impact Energy’s Residential Solar service to join the green brigade.

Commercial Sector: The Smart Investors

The commercial sector is catching up, accounting for 25% of Net Metering usage. Businesses understand that it’s not just about savings; it’s also about sustainability. Have a business? Think Commercial Solar.

Industrial Sector: The New Kids on the Block

At 10%, the industrial sector is in the nascent stage but showing promise. Large factories and plants are starting to see the value in Net Energy Metering. It’s not just about cost; it’s also about corporate responsibility.



Colorado’s Recent Updates on Solar Net Metering Programs

Colorado shines bright with its progressive renewable energy net-metering framework, courtesy of the fresh directives under Senate Bill 261 of 2021. Here’s a snippet of what the program unfolds: Mandated by the Colorado Public Utilities Commission (PUC), all investor-owned utilities (IOUs) are to extend net-metering perks to their customers.

With the net-metering cap leaping from 120% to 200%, patrons now revel in heftier payouts for their surplus energy, a cap much loftier compared to many other state agendas. Although net-metering policies differ across companies, the incentives are favorable to homeowners with solar.

Xcel Energy and Black Hills Energy, the state’s titans among investor-owned utility firms (IOUs), unfold their net-metering program specifics on their online platforms. For a deeper dive: The Database of State Incentives for Renewables & Efficiency (DSIRE) is your gateway to unraveling more about Colorado’s net-metering charm. We also endorse liaising with your local utility provider for an extra scoop on its net-metering agenda.

Colorado Utilities—Solar Money-Saving Offers

Black Hills Energy Solar Power Program Learn more: Exclusive to Black Hills customers, this scheme showers 3 cents per kilowatt (kW) for systems capping at 20 kW.

Colorado Springs Utilities Renewable Energy Rebate Discover: Customers here bag rebates up to 10 cents per watt for rooftop solar setups capping at 15 kW.

EnergySmart Colorado Explore: A bonus for residents across numerous counties including Eagle Valley, Pitkin, and Summit County, with rebates oscillating between $400 and $2,500 based on locale.

Holy Cross Energy Dive in: Holy Cross Energy pays $500 for the initial 6 kW, with diminishing payouts for larger setups, all calculated on a per kW basis.

Xcel Solar*Rewards Program Check it out: Cash back up to half a cent per kWh awaits customers for solar energy systems with capacities below 25 kW. These local incentives, coupled with the state’s robust net metering program, make solar an attractive venture for both your wallet and the environment.

Outlook for Solar Net Metering in Colorado in the Future

Colorado has a promising horizon for net metering, driven by both technological advances and supportive policies:

  • Growth in Solar Installations: With solar companies like Impact Energy offering services like Ground-Mounted Solar, the number of solar installations is expected to rise, driving demand for net metering in Colorado.
  • Technological Improvements: The advent of Solar Backup Batteries allows homeowners to store excess solar power, reducing their reliance on the electric grid and making net metering in Colorado even more advantageous.
  • Statewide Commitments: Colorado is striving to become a clean energy leader. This commitment to green energy solidifies the state’s support for net metering.

Future Predictions:

  • Increased solar adoption among businesses and homeowners.
  • More advanced net metering infrastructure.
  • Stronger collaboration between utilities and solar providers.


Key Takeaway: 
Denver’s climate is ideal for solar panels, but a sturdy roof system is crucial too. That’s where we at Impact Energy step in—not only do we install the panels, but we also equip you with a new roof designed to withstand Colorado’s harsh weather. Our team boasts not just expertise in advanced PV system installation, but they’re also seasoned pros in roofing—a distinction that sets us apart.

Top Benefits of Net Metering

  1. Economic Savings Save those greens while going green! By feeding excess power back to the utility grid, you effectively spin your electric meter backward. The result? Lower electricity bills. Imagine your meter doing the moonwalk!
  2. Maximizing Solar Investment Your Solar Backup Batteries are great, but sometimes they’re full, and the sun’s still shining. Net metering ensures no solar energy goes to waste.
  3. Energy Independence More energy banked means less reliance on the power grid. With net metering, you gain greater energy self-sufficiency.
  4. Environmental Impact Cleaner, greener earth? Yes, please! Net metering promotes solar use, reducing our carbon footprint.
  5. Grid Health and Stability Your excess energy supports the grid during peak times. It’s a win-win for everyone!

Real-Life Example Jane Denver, living in sunny Colorado, decided to invest in a rooftop solar energy system. On bright days, her system overproduces. Thanks to net metering, she enjoys reduced utility bills and even receives credit during sun-scarce months!

How Net Metering Benefits Various Solar Solutions

Solar SolutionBenefit from Net Metering
Residential SolarHomeowners see direct savings on monthly electric bills.
Commercial SolarBusinesses experience decreased operational costs.
Ground Mounted SolarOptimal energy production leads to maximum benefits.



Solar Net Metering FAQs

Is net metering with solar worth it? Yes. Net metering lets you give extra solar power to the local power system. In return, you get net metering credits that lower your electric bill. This means you might not need to buy a solar battery, which can be really expensive, sometimes more than $10,000.

What are the negatives of net metering? One big problem with net metering is the tricky games the electric company can play. They might not pay you the full price for the electricity you make, depending on where you live and the company itself.

How do you make money from net metering? Net metering lets people and businesses get rewards for the extra solar power they make and give to the power network. This way, they can save money on their energy bills and even get paid for the extra power they share.

Can I use solar panels without net metering? If you don’t have net metering, you need a solar battery to save extra power from your solar panels. This means spending more money at the start.

Which states have the best net metering? These states: Arizona, California, Colorado, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and West Virginia are the best for net metering. In 2015, Freeing the Grid gave them an “A” grade.




Solar net metering in Colorado offers a win-win situation for both the state and its residents. With favorable policies and a bright future outlook, now is the perfect time to invest in solar energy solutions like Ground-Mounted Solar. The economic benefits are tangible, and the positive impact on the environment is priceless. So, if you’re in Colorado and considering a switch to solar, net metering is definitely something you’ll want to take advantage of. It’s not just an investment in your home; it’s an investment in a sustainable future.