In short: Colorado is one of the easier states for home solar: strong high-altitude sun, full retail net metering, and since August 12, 2026 a law that allows plug-in balcony solar. Power cost about 17¢ per kWh in July 2026, up 6% in a year. Winter storms and planned wildfire shutoffs are the main reasons to add backup power.
Below we go through what Colorado’s own numbers mean for each choice: backup power for blizzards and shutoffs, rooftop and plug-in solar, home batteries, EV charging and even small wind, which is more realistic here than in most states. Every figure has its source and date.
Colorado at a glance
- Home electricity price: 17.0¢/kWh in July 2026 (EIA, preliminary), up from 15.99¢ in July 2025; 16.72¢ average for January to July 2026. U.S. average: 18.31¢ (EIA, July 2026).
- Outages in 2024: 255 minutes per customer including major events, 119 minutes without them; 1.4 interruptions per customer, or 1.1 on normal days (EIA-861, 2024).
- Sun: about 4.85 kWh per square meter per day in Denver and 5.0 near the center of the state (NASA POWER, 2001–2020), roughly 1,420 kWh per kW of panels per year in Denver by our rough estimate.
- Net metering: full retail net metering with rollover under state law for investor-owned utilities such as Xcel Energy and for larger co-ops. City-owned utilities set their own rules: Colorado Springs Utilities has approved a move to time-of-day net billing or a demand-charge option for new solar agreements from April 2027.
- Plug-in (balcony) solar law: in force since August 12, 2026 (HB26-1007), up to 1,920 watts.
- Electric vehicles: 162,800 battery-electric and 57,100 plug-in hybrid cars through 2025; 7,871 public charging ports at 2,891 locations, 1,681 of them DC fast (AFDC, October 2026).
- Main utilities: Public Service Co. of Colorado (Xcel Energy, about 55% of customers), Colorado Springs Utilities (9%), CORE Electric Cooperative (6%) and United Power (4%) (EIA-861, 2024).
- Top weather hazards: winter weather rated very high; wildfire and cold wave relatively high; tornado and strong wind relatively moderate (FEMA National Risk Index, December 2025).
- Public Safety Power Shutoffs (PSPS): yes. Xcel Energy shut off power to about 50,000 Front Range customers in December 2025 and ran another shutoff in the San Luis Valley in April 2026.
Backup power in Colorado
Colorado’s outage time more than doubles when major events are counted, from 119 to 255 minutes per customer in 2024. FEMA rates winter weather as the state’s top hazard, with cold waves and wildfire close behind. And Colorado now has a second kind of outage to plan for: the planned shutoff. In December 2025 Xcel Energy cut power to about 50,000 customers along the Front Range during a high fire-risk event, which showed that PSPS is no longer just a California issue. When a shutoff lands in a cold snap, keeping the heat on becomes the priority.
- Furnace and essentials: a gas furnace’s blower needs only a few hundred watts, so a home battery or a mid-size generator on a transfer switch can keep a home warm through a long outage. All-electric homes with heat pumps need a larger system.
- Shutoff warnings: utilities aim to warn before a PSPS, which gives you time to fully charge a battery or fuel a generator.
- Short outages and apartments: a portable power station keeps phones, internet, lights and a CPAP running.
Generators lose some power at high altitude, so check the maker’s derating figures when sizing in the mountains. Follow the CPSC rules: outdoors only, at least 20 feet from the house, exhaust away from windows, doors and vents, never in a garage, and battery-powered carbon monoxide alarms on every level. Clear snow away from the exhaust in a storm. Have a licensed electrician install the transfer switch or interlock. Work out your loads with the generator sizing calculator or the battery backup calculator.
Solar in Colorado
Colorado keeps full retail net metering under state law (C.R.S. 40-2-124) for investor-owned utilities such as Xcel Energy and for larger co-ops: they credit the power you send to the grid at the retail rate and roll extra credits forward. For those customers the math is simple, because a kWh exported is worth about the same as a kWh used. City-owned utilities set their own rules, and at least one is changing: Colorado Springs Utilities has approved time-of-day net billing or a demand-charge option for solar agreements signed from April 1, 2027 (older agreements move over in 2032). See our Colorado Springs guide.
Rough numbers (estimates, not promises): each kW of panels in Denver makes about 1,420 kWh a year, worth about $241 at 17¢. A 6 kW system makes about 8,520 kWh, worth up to roughly $1,450 a year at the July 2026 price. Snow can cover panels for a few days after storms, and tilted panels usually produce more than our horizontal-basis estimate. EIA counted 179,751 net-metered home solar systems in Colorado in 2024 (about 928 MW). Use the solar potential calculator, compare solar costs and read how net metering works.
Plug-in solar: Colorado’s HB26-1007 took effect August 12, 2026. It allows one plug-in system per address, sending up to 1,920 watts to the grid, and the equipment must be listed by a nationally recognized testing laboratory. Your utility cannot require approval or a fee but may ask you to tell it about the system and its size. Rules on HOAs and on the sale of these devices start January 1, 2027. As a rough estimate, a well-placed 800-watt kit could make on the order of 1,100 kWh a year, worth about $190; vertical balcony mounting makes less.
Colorado incentives we could confirm (check each program page; rules change):
- Residential renewable energy property tax exemption: solar equipment owned by the homeowner and serving the home is exempt from property tax.
- State sales and use tax exemption for components used to produce renewable energy, such as panels, inverters, wiring and racking; local sales taxes may still apply.
The federal 25D credit ended for systems completed after December 31, 2025. Utilities may run their own programs; see our solar guide and incentives page.
Home batteries in Colorado
With retail net metering, a battery does not save much money on its own in Colorado, because exported solar already earns full credit. Its value is backup: riding through a winter outage or a PSPS event without fuel. Only 1,298 net-metered solar homes reported a paired battery in 2024, so most Colorado solar owners have no backup when the grid is down; standard grid-tied solar shuts off in an outage for line-worker safety. If you live in a wildfire-risk area along the foothills, a battery is worth pricing with any new solar system. Keep it within the maker’s temperature range; an unheated garage can get very cold. See our home battery guide and home battery costs.
EV charging in Colorado
Colorado had 162,800 battery-electric cars through 2025 and 7,871 public charging ports, about 21 cars per port. At home, using about 30 kWh per 100 miles (a typical rating of the kind fueleconomy.gov shows), 100 miles cost about $5.10 at 17¢, and 12,000 miles a year about $610 (estimate). Cold weather and mountain driving raise energy use, so winter costs will be higher.
Drive on another fuel? See every alternative fuel station in Colorado: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.
A Level 2 charger needs a 240-volt circuit from a licensed electrician, with a permit. The federal 30D credit ended September 30, 2025, and the 30C charger credit ended for chargers placed in service after June 30, 2026. Check your utility for any charger rebate or EV rate. More in our EV charging guide and the EV charging cost calculator.
Off-grid, small wind and micro-hydro
Mountain cabins and ranches are good off-grid candidates thanks to strong sun, with batteries and a generator for winter; see off-grid power. Colorado is also one of the few states where small wind deserves a look: NASA POWER puts the 50-meter average at about 5.8 m/s near the center of the state and 5.6 m/s around Denver, above the roughly 4.5 m/s the U.S. Department of Energy suggests for a grid-tied home turbine. Our estimate is “fair, very site-dependent”: small turbines sit lower, and terrain matters a lot, so measure first (wind energy). Micro-hydro can work where a property has a year-round stream with drop, subject to Colorado water law; we have no state data, but our hydropower page explains the basics.
Licensing and permits in Colorado
Colorado has no separate solar license. Electrical contractors register with, and electricians are licensed by, the State Electrical Board in the Department of Regulatory Agencies (DORA), Division of Professions and Occupations. Search the division’s website for its license lookup. Permits come from your city or county, and your utility handles interconnection; for plug-in systems under HB26-1007, it may only ask for notice.
Local guides in Colorado
Utilities, rates, outage records, permit offices and local programs for each area:
Where we cover in Colorado
- Denver: Denver, Aurora, Lakewood, Arvada, Littleton, Parker, Castle Rock
- Northern Colorado: Boulder, Fort Collins, Loveland
- Colorado Springs: Colorado Springs
- Western Slope: Grand Junction
Local pages for these areas will follow as we verify local information and installers.
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Colorado energy FAQs
Is balcony or plug-in solar legal in Colorado?
Yes, since August 12, 2026. HB26-1007 allows one plug-in system per address, up to 1,920 watts to the grid, using equipment listed by a recognized testing laboratory. The utility cannot require approval or a fee but may ask for notice. HOA and sales rules begin January 1, 2027.
Does Colorado have net metering?
Yes, for most homes. State law requires investor-owned utilities such as Xcel Energy and larger co-ops to credit exported solar at the retail rate, with extra credits rolling forward. City-owned utilities set their own terms; Colorado Springs Utilities, for example, is moving new solar customers to time-of-day net billing or a demand-charge option from April 2027. Confirm your utility’s terms before you sign.
Does Xcel Energy shut off power for wildfires in Colorado?
Yes. Xcel Energy cut power to about 50,000 Front Range customers in a December 2025 Public Safety Power Shutoff and ran another in the San Luis Valley in April 2026. Sign up for your utility’s alerts, and if you live in a fire-prone area, consider a battery or generator.
Are there solar tax breaks in Colorado?
Yes: homeowner-owned solar serving the home is exempt from property tax, and panels, inverters, wiring and racking are exempt from state sales and use tax, though local taxes may apply. The federal 25D credit ended for systems completed after 2025. Check the program pages, because rules change.
Is small wind worth it in Colorado?
Possibly, on an open, windy site. NASA POWER averages near 5.8 m/s at 50 meters in central Colorado, above the Department of Energy’s rough 4.5 m/s threshold, but home turbines sit lower and terrain changes everything. Measure wind on your own land for a year before you buy a turbine.
Sources
Electricity prices: EIA Electric Power Monthly, July 2026 (preliminary). Outages, utilities and net-metered solar: EIA-861, 2024. Weather hazards: FEMA National Risk Index, December 2025. Sun and wind: NASA POWER, 2001–2020 averages. EV registrations and charging ports: Alternative Fuels Data Center (AFDC), 2025 registrations and station counts read October 3, 2026. Net metering and plug-in solar: Colorado General Assembly (C.R.S. 40-2-124, HB26-1007). Tax exemptions: Colorado Division of Property Taxation and Legislative Council, checked October 3, 2026. PSPS: Xcel Energy newsroom. Licensing: DORA State Electrical Board. Generator safety: CPSC.