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TOU Rate Structure

Solar ROI for Xcel Energy Colorado Customers

Xcel Energy Colorado charges an average of $14.2¢/kWh. Peak rates reach $19.5¢/kWh with off-peak at $9.8¢/kWh, creating strong battery arbitrage value. A 7 kW solar system produces a $11,378 NPV over 25 years.

$13,720
Net System Cost
$11,378
25-Year NPV
9 years
Payback Period
$0.131/kWh
Solar LCOE

Xcel Energy Colorado Rate Structure

ParameterRate
Average residential rate$14.2¢/kWh
Peak rate$19.5¢/kWh
Off-peak rate$9.8¢/kWh
Peak/off-peak spread$9.7¢/kWh
Rate structureTOU
Export credit policy1:1 net metering at retail rate

Solar System Economics

A 7 kW solar system for a Xcel Energy Colorado customer costs $19,600 before incentives. The 30% federal ITC saves $5,880. The net out-of-pocket cost is $13,720.

At Xcel Energy Colorado's $14.2¢/kWh average rate, the system saves $1,541 in year one, producing 10,850 kWh. The solar LCOE of $0.131/kWh is 8% below Xcel Energy Colorado's current rate.

Battery Storage for Xcel Energy Colorado Customers

$8,400
Battery Net Cost
$1
Daily Arbitrage
$323
Annual Arbitrage
-$6,616
25-Year Battery NPV

Xcel Energy Colorado's TOU spread generates $323/year in arbitrage value. The 25-year battery NPV of -$6,616 suggests batteries are marginal on economics alone. Backup power value and grid services programs may improve the case.

FAQ: Solar for Xcel Energy Colorado Customers

How much can Xcel Energy Colorado customers save with solar?
A typical 7 kW solar system saves Xcel Energy Colorado customers approximately $1,541/year in electricity costs. Over 25 years, the NPV of savings after system costs is $11,378.
What is Xcel Energy Colorado's rate structure?
Xcel Energy Colorado uses a time-of-use (TOU) rate structure with peak rates of $19.5¢/kWh and off-peak rates of $9.8¢/kWh. The $9.7¢/kWh peak/off-peak spread creates significant value for battery storage — TOU arbitrage alone is worth $323/year.
Does Xcel Energy Colorado offer net metering?
1:1 net metering at retail rate
Should Xcel Energy Colorado customers add battery storage?
Battery storage for Xcel Energy Colorado customers has a 25-year NPV of -$6,616. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Colorado

Black Hills Energy Colorado
$13.5¢/kWh · FLAT
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