Colorado Springs Utilities is changing how it bills customers with rooftop solar. City Council, which sets rates for the city-owned utility, approved the new net metering structure on September 22, 2026. Current customers have five years before it applies to them. New customers who sign agreements from April 1, 2027 will go straight onto it.
The Short Version
| Item | What changes |
|---|---|
| Approved | September 22, 2026, City Council, 7–2 vote (per The Gazette) |
| Who moves when | Agreements dated before April 1, 2027: new rates from April 1, 2032 |
| System size cap | Up from 120% to 200% |
| Rate choice | Option 1: grid access charge with time-of-day rates. Option 2: demand charge |
| On-peak hours | 5 p.m. to 9 p.m., Monday to Friday |
| Estimated bill impact | About +$38 a month under either option, calculated with 2027 rates |
| Reason given | A cost shift of about $400 a year per solar customer, the utility says |
Why the Utility Says It Changed
Colorado Springs Utilities says solar customers were billed at a flat rate that did not reflect higher costs in the 5 p.m. to 9 p.m. weekday peak, when solar produces little. It puts the resulting cost shift at “about $400 per year per solar customer,” covered by customers without solar. The Gazette reports staff estimated the total at about $4 million a year.
The two options are designed to recover more of those peak costs from solar customers. The utility’s estimate of about $38 a month is $456 a year (38 × 12), close to its $400 cost-shift figure.
Option 1: Grid Access Charge
A fixed daily charge plus time-of-day prices. The utility lists these components:
| Component | Rate |
|---|---|
| Access and facilities | $0.7269 per day |
| New grid access charge | $1.0000 per day |
| Access and facilities, per kWh | Summer: on-peak $0.3089, off-peak $0.0772. Winter: on-peak $0.1544, off-peak $0.0772 |
| Electric cost adjustment, per kWh | On-peak $0.0411, off-peak $0.0206 |
| Electric capacity charge, per kWh | $0.0066 |
What that adds up to (our arithmetic):
- Fixed daily charges: $0.7269 + $1.0000 = $1.7269 a day, or $51.81 in a 30-day month.
- Summer on-peak energy: $0.3089 + $0.0411 + $0.0066 = 35.66¢ per kWh.
- Off-peak energy, either season: $0.0772 + $0.0206 + $0.0066 = 10.44¢ per kWh.
- Winter on-peak energy: $0.1544 + $0.0411 + $0.0066 = 20.21¢ per kWh.
Under this option, monthly rollover of kWh credits ends. The utility describes it as “net billing with separate on-peak and off-peak monthly bill credits.” The page does not list the credit rates.
Option 2: Demand Charge
A smaller fixed charge, a flat per-kWh price and a charge based on your single highest 15-minute period of net use during on-peak hours in the billing period.
| Component | Rate |
|---|---|
| New access and facilities | $0.8265 per day |
| New demand charge, per kW per day | Summer $0.3608, winter $0.2462 |
| New access and facilities, per kWh | $0.0294 |
| Electric cost adjustment, per kWh | $0.0233 |
| Electric capacity charge, per kWh | $0.0066 |
Our arithmetic:
- Fixed daily charge: $0.8265 × 30 = $24.80 in a 30-day month.
- Energy: $0.0294 + $0.0233 + $0.0066 = 5.93¢ per kWh, flat.
- Demand: your highest on-peak 15-minute kW × the daily rate × days in the month.
| Highest on-peak demand | Summer month (30 days) | Winter month (30 days) |
|---|---|---|
| 3 kW | 3 × $0.3608 × 30 = $32.47 | 3 × $0.2462 × 30 = $22.16 |
| 5 kW | $54.12 | $36.93 |
| 7 kW | $75.77 | $51.70 |
The utility says existing customers who choose this option can keep monthly rollover of kWh credits.
Which Option Suits Which Home
| If your home… | Likely better fit | Why |
|---|---|---|
| Runs big loads at once in the evening (oven, dryer, EV charger, AC) | Option 1 | One 15-minute spike sets the whole month’s demand charge under Option 2 |
| Can keep evening use low and staggered | Option 2 | Low per-kWh price and a small demand charge |
| Has, or will add, a battery | Either, but run both | A battery can cut on-peak kWh (Option 1) or the peak spike (Option 2) |
| Relies on carrying summer credits into winter | Option 2 (existing customers) | Option 1 ends monthly rollover |
The utility says both options have the same estimated impact for a typical customer. Your result depends on your load shape, which only your interval data can show.
The Gazette reports that Councilmember Nancy Henjum voted no because the utility does not yet have a battery program. It quotes the utility’s CEO saying one could start around March 2027.
What Else Changed
- Bigger systems allowed: the cap rises from 120% to 200%. The utility did not say 200% of what measure on its summary page. We assume it is the same basis as the old 120% cap, but confirm before designing a larger system.
- A separate rate cut: The Gazette reports a unanimous across-the-board electric rate decrease effective October 1, worth about $1.50 a month for the average customer. That applies to all customers and is separate from the net metering change.
- The utility says net metering agreements do not guarantee a rate structure.
What to Do Now
- If you are getting quotes: an agreement dated before April 1, 2027 keeps current terms until April 1, 2032. After that date you start on the new rates. Ask installers to model both options, not today’s rates.
- If you already have solar: you have until April 1, 2032. Download your interval data and look at your highest weekday evening use.
- Consider your evening loads: under the demand option, staggering appliances between 5 p.m. and 9 p.m. on weekdays can lower the charge.
- Watch for the utility’s workshops and open houses, which it lists as still to be scheduled.
Colorado Springs Utilities is city-owned, so its rates are set by City Council, not the Colorado Public Utilities Commission. For Xcel Energy and other Colorado utilities, see our Colorado rate guide. For how demand charges work in general, see residential demand charges explained.
Limitations
- Rate components and the $38 estimate are as listed on the utility’s page, which says the estimate uses 2027 rates. Rates could change before April 1, 2027.
- Export credit rates under Option 1 are not listed on the summary page.
- Vote counts, the rate decrease and the customer count come from The Gazette, not the utility.
- The monthly figures use a 30-day month.
Sources
- Colorado Springs Utilities, “Approved changes for solar customers”
- The Gazette, “Electric rate decrease, net metering hikes approved for Colorado Springs Utilities,” September 22, 2026
Frequently asked questions
What did Colorado Springs approve for solar customers?
City Council approved two new rate options for net metering customers: a fixed daily grid access charge with on-peak and off-peak rates, or a demand charge based on the highest 15-minute on-peak use each billing period. It also raised the system size cap from 120% to 200% and set a five-year grandfathering period.
How much will the new net metering rates cost?
Colorado Springs Utilities estimates both options raise a typical solar customer's bill by about $38 a month, calculated with 2027 rates. Your amount depends on your usage, when you use it and, under the demand option, your highest 15-minute on-peak use.
Are existing solar customers affected?
Customers with net metering agreements dated before April 1, 2027 move to the new rates on April 1, 2032. The Gazette reports more than 11,000 current net metering customers.
What are on-peak hours under the new Colorado Springs solar rates?
On-peak is 5 p.m. to 9 p.m., Monday through Friday. Under the grid access charge option, both usage and generation are priced or credited separately for on-peak and off-peak periods.
