Is Solar Worth It in Colorado? 2026 Rates & Payback
Is solar worth it in Colorado?
Worth consideringAt 17.0¢/kWh, a system in Colorado pays for itself in about 11.4 years — reasonable, but not exceptional.
Electricity here is 12% cheaper than the national average (~19.3¢/kWh).
Rates in Colorado rose 28% from 2020 to 2025. If prices rise 3% a year, payback drops to about 9.9 years. Try other scenarios ↓
Get free quotes from local installersEstimates only. Actual results depend on your home, installer and local rules. Learn more: Is solar worth it in 2026? · What if electricity prices rise?
At 17.0¢/kWh, a home using 900 kWh a month pays about $153. A 6 kW rooftop system here produces roughly 9,300 kWh a year. At $3.00/W ($18,000, before incentives), the savings would pay off the system in about 11.4 years.
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Estimate based on average system size and current rates. Actual results vary.
What if electricity prices rise?
Many states have seen rates rise faster than 3% in recent years.
Do nothing: over 25 years you'd pay about $57,642 for the electricity a 6 kW system would otherwise produce — money that stays with the utility instead of paying off your panels.
Estimates only. Actual results depend on your home, installer and local rules.
Electricity rate trend
From 2020 to 2025, the average residential rate went from 12.4¢ to 15.8¢/kWh — +28% in 5 years.
If rates continue at a similar pace, solar payback shortens further.
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Electricity price trend
Electricity in Colorado went up 31% since 2015 (about 2.7% per year).
Average residential price, ¢/kWh (EIA yearly data).
For a 6 kW system. Yearly price rise capped at 5% in this estimate. Future prices are not guaranteed.
Major utilities & net metering
- Xcel Energy
- Black Hills Energy
Time-of-use plans are common: power costs most in late afternoon and evening.
Net metering: Full retail credit — exported solar power is credited at (close to) the price you pay.
General guide — check your utility for current rates.
Solar installers in Colorado
See all →Rocky Mountain Solar (example)
VerifiedDenver, CO · 10 yrs in business · NABCEP certified
Solar · Batteries
Serves: CO, UT
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Data based on EIA and NREL PVWatts (rates for 2026-07). Some figures are sample estimates because a data service was unavailable.