Is solar worth it in Colorado?
A 7.0 kW rooftop system near Denver produces about 11,165 kWh a year. Priced against the 11 residential tariffs currently on file in Colorado, payback runs from 11 years on the best of them to 43 on the worst.
Why the tariff matters more than the panels
Two households in Colorado with identical roofs and identical systems can see paybacks 11 and 43 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 47% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in Colorado
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 11 of 11 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Black Hills/Colorado Elec.Utility Co. LP | Residential Service: RS-1 | Time-of-use + tiered | $946–$1,846 | 11–22y |
| Public Service Co of Colorado | Residential Energy Time Of Use (Schedule RE-TOU) | Time-of-use | $550–$1,828 | 11–38y |
| Public Service Co of Colorado | Residential General Service Opt-Out (Schedule R-OO) | Time-of-use | $865–$1,826 | 11–24y |
| Public Service Co of Colorado | Residential Service (Schedule R) | Time-of-use | $851–$1,803 | 12–25y |
| San Miguel Power Assn, Inc | Single Phase Non-Demand TOU | Time-of-use | $682–$1,693 | 12–31y |
| Mountain Parks Electric, Inc | General Service Whole House Time of Use (Residential) | Time-of-use | $499–$1,424 | 15–42y |
| Mountain Parks Electric, Inc | General Service Small (Residential) (Under 50 kW) | Flat | $665–$1,417 | 15–32y |
| City of Colorado Springs, Colorado (Utility Company) | Energy Wise Standard Time of Day (ETR) | Time-of-use | $443–$1,355 | 16–47y |
| City of Colorado Springs, Colorado (Utility Company) | Energy Wise Plus Time-of-Day Option (ETR-P) | Time-of-use | $490–$1,334 | 16–43y |
| Delta Montrose Electric Assn | Optional Residential Time Of Use (TOU11) | Time-of-use | $429–$1,134 | 19–49y |
| Black Hills/Colorado Elec.Utility Co. LP | Residential Service: RS-2 | Flat | $494–$1,052 | 20–43y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Denver on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within Colorado itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.