Net metering with Xcel Energy
Xcel Energy is Colorado's largest electric utility, and its net metering program is one of the most solar-friendly in the state. Because Xcel is regulated by the Colorado Public Utilities Commission, net metering rules are set in its filed tariffs — your excess solar is credited at the full retail rate.
Export credit
Full retail rate, banked month to month
Credit rollover
Indefinite, or optional annual payout
Who handles paperwork
Seed Solar files your interconnection application
How it works, step by step
A bi-directional meter tracks power both ways
When your system is approved and turned on, Xcel's net meter measures both the power you pull from the grid and the excess solar you send back.
Excess solar is credited at the retail rate
Any month you produce more than you use, the extra kilowatt-hours go into your "solar bank" and are applied against future bills at the full retail rate — so summer overproduction helps pay your winter bills.
Your solar bank rolls forward
Banked credits carry forward month to month. Through Xcel's Solar Bank Election, you can choose to keep rolling credits forward indefinitely or receive an annual payout for banked energy (paid at a lower, wholesale-based rate — most homeowners are better off rolling credits forward).
Approval before you build
Xcel requires your interconnection application to be fully approved before construction starts. As your installer, Seed Solar handles the application, engineering review, and final agreements for you.
Xcel's income-qualified solar rebate: up to $30,000
Under the 2026–2027 Renewable Energy Plan approved by the Colorado PUC, Xcel's Solar*Rewards program pays income-qualified homeowners an upfront rebate of $3.00 per watt of installed solar, up to 10 kW AC — as much as $30,000 on a typical system. Homes inside a state-designated Disproportionately Impacted Community can qualify by address alone.
The income limits are more generous than most people expect: a household of four in the Denver metro can earn up to $106,800 and still qualify under the 80% area-median-income test. Our free screener checks your county, household size, and income against the 2026 limits in about a minute.
- Three income tests — 80% AMI, 200% of the federal poverty level, or enrollment in LEAP and similar programs
- Rebate is paid upfront and reserved before installation
- Funds are first-come, first-served each program year
Xcel's battery program: Renewable Battery Connect
If you add battery storage with your solar, Xcel's Renewable Battery Connect program pays you for letting Xcel draw a portion of your stored energy during grid peak events. In exchange, you get an upfront incentive based on your battery's size — under the 2026 program that's $250 per kW of continuous discharge (up to $5,000 per application), $500 per kW for homes in Disproportionately Impacted Communities, and $1,000 per kW for income-qualified customers.
Your battery still works for you: it keeps a backup reserve for outages, and you stay in control of your home's power. Incentive levels are set by Xcel's PUC-approved renewable energy plan and budgets refill each program year on a first-come, first-served basis — so if a battery is on your list, enrolling earlier in the year is generally safer.
- Upfront incentive per kW of battery discharge capacity, capped per application
- Xcel can call on part of your stored energy during peak events (a limited number per season)
- Backup power for outages is preserved — a reserve stays available to your home
- Separately, qualifying customers in wildfire-risk areas may be eligible for Xcel's PSPS backup battery rebate of up to $10,000
How many Powerwalls does your home need?
A quick estimate based on Tesla Powerwall 3 — answer four questions.
Our recommendation
1
Tesla Powerwall 3
Typical for your home size: 1–2
This is a starting point — panel capacity, which circuits you want backed up, and your actual usage all shape the final design. We confirm the right count with a free home assessment.
Good to know
- Xcel also offers Solar*Rewards, a separate incentive program. For income-qualified households and homes in Disproportionately Impacted Communities it pays an upfront rebate of up to $3.00 per watt (up to 10 kW AC) under the 2026 program — see our Xcel rebate qualification check to find out if you're eligible.
- Your name on the interconnection application must match the name on your Xcel account.
- Xcel bills still include fixed monthly service charges that solar can't offset.
Utility rates and net metering rules change over time. This overview reflects Xcel Energy's program as of mid-2026 — always confirm current terms at Xcel Energy Net Energy Metering. When you get a quote from us, we verify the current rules for your address.
Solar designed around Xcel's rules
We size and design every system for your utility's exact rate structure — so your savings estimate reflects how Xcel Energy actually credits solar.