Colorado Electricity Rates 2026 — Cost per kWh & Savings
The average electricity rate in Colorado (CO) is $0.1415/kWh, ranking #20 among US states. The average monthly bill is $108 for 763 kWh of usage.
Calculate Your Colorado Electric Bill
Electricity Savings Tips for Colorado
Colorado offers strong solar incentives including a state tax credit and net metering. With 300+ sunny days per year, solar panels perform well. Xcel Energy offers time-of-use rates that reward shifting usage to midday when solar production peaks.
Primary Utility: Xcel Energy
Colorado has a regulated electricity market served primarily by Xcel Energy. Rates are set by the state public utility commission and cannot be changed by shopping for providers. Focus on reducing usage and investing in efficiency improvements to lower your bill.
Solar Energy in Colorado
Colorado receives an average of 5.5 peak sun hours per day. This is excellent for solar energy production. A typical 6 kW system would produce approximately 9636 kWh per year, potentially offsetting your entire electric bill. At $0.14/kWh, a solar system that produces 9636 kWh/year saves approximately $1363/year. With the 30% federal tax credit, typical payback is 8-12 years.