*Solar panel cost varies by location, solar panel mqanufacturer, system size and the amount of electricity your home uses.
Installing solar panels can help reduce your Xcel Energy bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
Yes! With a hefty $1,000 per kilowatt solar rebate, the Xcel rewards solar payment program, and available sales and property tax exemptions, solar panels make a lot of sense for Xcel Energy customers in Colorado. Xcel's net metering agreement also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Yes, Xcel Energy Colorado offers net metering credits.
Under the Xcel Energy Colorado net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
In addition to net metering, Xcel offers its Colorado customers a program called Solar*Rewards, which pays a small additional amount for every kWh of solar energy your panels generate. The current payment is $.005/kWh for systems under 25.01 kW in size, which isn't a very large amount, but can save the average Colorado solar owner an extra $50 per year.
If you end up with a system larger that 25 kW, the payment goes up to $0.0375/kWh, which is huge. At that rate a 25-kW system would produce an extra $1,500 in income per year. 25 kW is much bigger than most home systems will be, but if you have land or run a business, this can be a very nice way to earn some solar cash.
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a Xcel Energy customer:
Upfront Incentives | Value* |
---|---|
Residential Clean Energy Tax Credit (Federal) | -$7,130 |
Sales and Use Tax Exemption for Renewable Energy Equipment
(State)
Solar energy equipment fully exempt from state sales tax. |
Varies |
RENU Loan Program
(State)
State funded loan program with loans available from $500 to $50,000 to help finance solar projects. |
Varies |
Property Tax Exemption for Residential Renewable Energy Equipment
(State)
Excludes assessed costs of a solar system from a homeowner's property taxes. |
Varies |
Net Metering
(State)
Investor-owned utilities must offer customers kWh credits on their utility bill. |
Varies |
Xcel Energy - Solar*Rewards Program
(Utility)
$0.005 per kWh produced with a cap of 2 MW capacity per month. Utility retains SRECs. |
Varies |
TOTAL | -$7,130 |
*Based on 9.93 kW system, average installation cost $23,768
If you input the details for a Xcel Energy customer with a power bill of $150 per month into the best online solar panels calculator, it tells you that you need a 9.93 kW solar system that will produce 15,086 kWh per year and that this system will return the owner a $48,589 profit after repaying the cost of the system.
The solar savings possible for you as a Xcel Energy customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical Xcel Energy customer with a $150 per month electric bill prior to solar and who installs a 9.93 kW solar system.
Showing data for:
Prices based on a 10.6kW system, after 30% federal tax credit
System Size (for 100% usage offset) 9.93 kW |
Annual Power Generation 15,086 kWh |
Pay-back time (assuming Cash purchase) 8.4 Years |
Internal Rate of Return (IRR) on Investment 8.2% |
Gross cost $23,768 |
Total Upfront Incentives and Rebates -$6,180 |
Net Cost of System after rebates and incentives $17,589 |
Total Cost of Utility Power Avoided over 25 years $60,144 |
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Xcel Energy Colorado customer installing a 9.93 kW solar system on their property:
A solar system generating 15,086 kWh per year will save you money AND make the world a nicer placeThe cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.39 per watt or $17,589 for a standard 9.93 kW solar system after the customer claims the 30% federal solar tax credit.