The average residential electricity rate in Colorado (CO) is $0.1418 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking Colorado #21 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Colorado household consumes 846 kWh per month, resulting in a monthly electric bill of approximately $120 and annual electricity costs of about $1,440.
Colorado has rapidly shifted from coal to wind and solar, generating more than 40% of electricity from renewables.
This comprehensive guide covers Colorado electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Colorado residential electricity rates have increased 16% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Colorado ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1222 | $0.1322 | -8% |
| 2022 | $0.1310 | $0.1492 | -12% |
| 2024 | $0.1370 | $0.1680 | -18% |
| Apr 2026 | $0.1418 | $0.1805 | -21% |
Colorado has a regulated electricity market. The primary providers are: Xcel Energy, Black Hills Energy, Holy Cross Energy.
Colorado generates electricity from: Natural gas 30%, Wind 27%, Coal 19%, Solar 14%, Other 10%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Colorado household uses 846 kWh/month.
Xcel Energy offers time-of-use rates where off-peak electricity costs 40-50% less. Colorado has some of the best solar resources in the nation, and the state offers additional tax credits on top of the federal 30% ITC.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Colorado receives 5.5 peak sun hours/day. A 6 kW system produces ~9,877 kWh/year, saving ~$1,401/year. With the 30% federal ITC, payback is typically 6-9 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Colorado (CO) | $0.1418 | $120 | Regulated |
| Kansas (KS) | $0.1398 | $143 | Regulated |
| Nebraska (NE) | $0.1198 | $122 | Regulated |
| New Mexico (NM) | $0.1378 | $108 | Regulated |
| Oklahoma (OK) | $0.1178 | $137 | Regulated |
| Utah (UT) | $0.1098 | $99 | Regulated |
| Wyoming (WY) | $0.1128 | $117 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.