Colorado's solar market is not the same for every property. The utility serving your home or business can affect how electricity is billed, how extra solar energy is credited, and how battery storage fits into your energy plan. If you are planning a solar smart home, knowing these details before installation can help you understand how your system will work with the electric grid.
Why Your Utility Matters Before Going Solar
Solar panels produce electricity when the sun is shining. Your home or business can use that power immediately. If your system produces more electricity than you need, the extra energy may go to the grid under your utility's solar and interconnection rules.
When solar production is lower than your property's needs, electricity can come from the grid. The basic process is similar, but billing rules can differ. That is why reviewing your utility rate and recent bills is important. Your yearly electricity use matters, but so does when and how you use electricity.
Holy Cross: Solar and the New Demand Charge
Holy Cross Energy changed its rate structure on April 1, 2026. Small Residential and Small Commercial customers now have a $1.00 per kW demand charge in addition to their energy charge. Demand is based on the highest average electricity use during a 15-minute period in the monthly billing cycle.
For Small Residential customers, the current energy charge is $0.11 per kWh, with a $16 monthly customer charge. Small Commercial customers have a $0.10 per kWh energy charge and a $20 customer charge. The Electric Cost Adjustment can change from month to month.
How Solar Net Metering Works With Holy Cross
Holy Cross gives eligible solar net-metering customers 100% retail credit for electricity sent to the grid that offsets their annual use. Any additional energy receives a wholesale credit. This makes system sizing worth careful consideration.
Your energy use, solar production, and daily usage patterns all matter. Holy Cross also recommends using larger electrical loads while solar is producing, while batteries can store excess solar power for later use.
What Xcel Customers Should Check
Xcel Energy also has processes for customers installing rooftop solar. Its Colorado resources explain that customers can install rooftop solar and request interconnection and net metering outside the SolarRewards incentive program. Xcel states that systems qualifying for its net-metering process can be less than 1 MW AC. Xcel also maintains information about SolarRewards and other renewable-energy programs.
Its current renewable-energy plans include distributed generation and battery storage, while current filings include information related to Solar*Rewards and Renewable Battery Connect. Property owners should check the current rate and program that applies to their specific account.
How Battery Storage Fits In
A battery can change when you use the electricity produced by your solar panels. For example, your solar smart home panels may generate more electricity during the afternoon than your home needs. A battery can store some of that energy for later use. This can be useful for properties that use more electricity in the evening.
Holy Cross currently offers battery-related programs, including Power+ and Power+FLEX, with incentives for qualifying systems subject to program requirements and available funding. Xcel has also offered battery programs that connect qualifying customer batteries with grid needs. Program terms can change, so current requirements should be checked before including incentives in financial planning.
Homes and Businesses Have Different Energy Needs
A home may use electricity for heating, cooling, water heating, appliances, and electric vehicle charging. A business can have a very different energy pattern. A restaurant, office, mountain lodge, retail property, or manufacturing facility may use larger equipment or have periods of high electricity demand. Because of these differences, the same solar system will not work the same way for every property.
A practical solar solution Colorado property owners can consider should start with actual electricity data. Reviewing recent bills can show when energy use is highest and help inform decisions about solar capacity, batteries, and energy management.
Start With the Utility
Xcel and Holy Cross have different service areas, rates, and program details. Understanding the rules that apply to your property can provide a clearer starting point for solar planning. Before moving forward, consider several questions.
Which utility serves the property? How is electricity billed? How is extra solar energy credited? How does the rate structure treat high electricity use? Which current solar or battery programs apply?
For homeowners and businesses in Colorado, answering these questions can help explain how a solar system will interact with the grid. From there, property owners can evaluate their options based on their own energy use and goals.
Sign in to leave a comment.