Colorado Net Metering Laws & Xcel Energy Buyback
Spoke ArticleColorado1 min readVerified Q1 · 2026

Colorado Net Metering Laws & Xcel Energy Buyback

SBI Editorial DeskUpdated Q1 · 20262 sections

Colorado has robust net metering laws that protect homeowners and guarantee fair compensation for solar production. If you use major utilities like Xcel Energy or Black Hills Energy, understanding net metering is vital to maximizing your savings.

01

How 1:1 Retail Net Metering Works

During bright Colorado afternoons, your system will likely generate more power than your home can consume. This excess electricity flows backwards through your meter into the grid. Your utility company credits you for this power at the 1:1 retail rate. You bank these credits during the summer and use them to offset your energy consumption during the shorter winter days.

02

The Continuous Rollover & True-Up

Under Colorado law, utilities generally allow your net metering credits to roll over from month to month indefinitely. If you continually overproduce, Xcel Energy gives you the option to either keep rolling the credits forward or receive a cash payout at the end of the year at the wholesale rate. SunBeam Innovations engineers your system to cover up to 120% of your historical usage to maximize these benefits.

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