Living with a view of Pikes Peak means you get some of the best sun in the country—over 300 days a year. For homeowners in Security-Widefield, this makes solar a powerful tool to take control of rising Colorado Springs Utilities (CSU) electric bills, which average over $122 a month.
Benchmark Cost Analysis
2026 Solar & Battery Costs in Security-Widefield
The upfront investment in solar is made significantly more affordable by federal and state incentives. Here’s a look at the typical costs for a system designed to offset a $122 monthly bill:
- Solar Only System: The most common choice for maximum ROI. The gross cost is around $11,500, but after the 30% federal tax credit, your net cost drops to just $8,050. This system pays for itself in about 7.5 years.
- Solar + Battery System: For those concerned about grid outages during severe weather, adding a battery provides crucial backup power. A combined system runs about $23,500 upfront, or $16,450 after the 30% credit, with a payback period closer to 15 years.
Incentives & Tax Credits
Available Solar Incentives for CSU Customers
Colorado offers some of the nation's best solar perks, on top of the main federal credit.
- Federal Solar Tax Credit: This is the big one. You get 30% of your total system cost (panels and battery) back as a dollar-for-dollar credit on your federal taxes.
- State Sales Tax Exemption: Colorado completely exempts renewable energy equipment from the state's 2.9% sales tax, saving you hundreds of dollars instantly.
- Property Tax Exemption: Adding solar panels increases your home's value, but thanks to a state exemption, your property taxes will not go up a dime.
While Xcel Energy customers often have access to additional rebates, Colorado Springs Utilities runs its own programs. It's important to check the latest CSU incentives when you get a quote.
Net Metering: Colorado Springs Utilities
Net Metering Active
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Understanding Net Metering with Colorado Springs Utilities
Colorado has a strong net metering policy. For every excess kilowatt-hour (kWh) your solar panels produce and send to the grid, CSU must credit your account at the full retail rate. This 1-to-1 credit is what makes 'solar only' systems so financially attractive here. Your excess production in sunny summer months effectively banks credits that you can use during shorter winter days, zeroing out your bill for much of the year.
Projected Savings
Slashing Your Monthly Colorado Springs Utilities Bill
With an average electricity rate of over 16 cents per kWh, a standard 4kW solar system in Security-Widefield can save you around $1,077 in your first year. Thanks to Colorado's high solar irradiance (5.88), your panels will produce efficiently year-round, even in winter. Over 25 years, these savings can exceed $35,000 as utility rates continue to climb.