☀️ Solar in Colorado Has Never Made More Sense: The Cost-Effectiveness Is Clear

📈 The Data Doesn’t Lie

We compared 30 years of average electricity rates from Xcel Energy and Holy Cross Energy—two of Colorado’s major utilities—against the cost of generating your own power with solar panels. Here’s what we found:

• Utility rates have risen by ~50% since 1995, increasing from around 9¢/kWh to over 13¢/kWh today.
• Solar PV electricity costs have dropped over 90%, from ~45¢/kWh in the '90s to under 6¢/kWh in 2023—and still falling.

![Graph of Electricity Rates vs. Solar Costs 1995–2025]

In 1995, powering your home with solar cost 4 to 5 times more than just buying electricity from the grid. Today, it’s the reverse. Solar is now cheaper than buying electricity from your utility, especially when you factor in state and federal incentives.

💸 Lock In Your Rates, Skip the Surprises

When you install solar panels, you’re essentially locking in a fixed cost for your electricity. Unlike utility rates—which are subject to inflation, infrastructure upgrades, and fuel price volatility—solar offers energy stability and predictable savings for 25+ years.

🌄 Why This Matters in Colorado

Colorado gets over 300 days of sunshine each year, making it one of the most solar-friendly states in the country. Add to that:

• Strong net metering policies, which credit you for extra energy you send to the grid.
• Local rebates and incentives from utilities and municipalities.
• A growing interest in energy independence and sustainability.

And you have the perfect storm for long-term value.

⚡ Real Numbers, Real Savings

Let’s say you use 800 kWh/month. At 13.5¢/kWh, that’s about $1,300/year in electricity costs. With solar, you can generate the same power at 5–6¢/kWh—cutting your power costs in half or more, with many systems paying for themselves in 7–10 years or less.

Plus, the 30% federal tax credit is still in full swing, making installation even more affordable right now.

✅ Bottom Line

The gap between rising utility rates and falling solar costs has never been wider. If you’ve been on the fence about going solar in Colorado, this is your sign. The technology is better, the incentives are strong, and the financial upside is clearer than ever.

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Sources:

U.S. Energy Information Administration. Average Price of Electricity to Ultimate Customers by End-Use Sector. www.eia.gov/electricity/data.php. Accessed 27 May 2025.Holy Cross Energy. Annual Reports and Rate Information. www.holycross.com. Accessed 27 May 2025.Xcel Energy. Tariff and Rate Filings – Colorado. www.xcelenergy.com. Accessed 27 May 2025.National Renewable Energy Laboratory. U.S. Solar Photovoltaic System and Energy Storage Cost Benchmark: Q1 2023. NREL, Sept. 2023, www.nrel.gov.Lazard. Levelized Cost of Energy Analysis – Version 17.0. Lazard, Oct. 2023, www.lazard.com.International Renewable Energy Agency. Renewable Power Generation Costs in 2023. IRENA, 2024, www.irena.org.

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