Colorado Springs Utilities is not Xcel
Almost every Colorado solar guide describes Xcel terms, because Xcel serves most of the Front Range. Colorado Springs Utilities is a municipally owned utility that sets its own rates through City Council rather than through the Public Utilities Commission.
So the Solar Bank election, the Solar*Rewards programme and the Xcel crediting arrangement that fill those guides do not describe your bill. If a quote for a Colorado Springs home cites Solar*Rewards, the person who prepared it has not checked which utility serves the address.
Because rates are set by Council rather than a regulator, the process is also more political and more public than a rate case elsewhere, which is why the current proposal has drawn a large volume of public testimony.
The practical consequence is that the terms are genuinely changeable, and that any figure you are shown has a date attached to it whether or not the quote says so. Ask which tariff the projection assumes and what date that tariff is current as of.
The change being decided right now
Colorado Springs Utilities has identified an annual cost shift of about $4.5 million attributed to net metering customers, and has put two options to Council to address it: a grid access fee, presented as Option 1, and a demand charge, presented as Option 2.
On August 25, 2026 Council heard public testimony from more than 30 speakers, the large majority opposed. A motion to delay implementation until battery storage programmes were approved failed 3-5. Council then directed Utilities to prepare final decisions based on the proposed tariffs, passing 6-2, with final adoption scheduled for September 22, 2026.
Reporting through 2026 has put the monthly impact on a typical solar customer in the region of tens of dollars per month, with figures around $38 and around $51 appearing in different accounts of different versions of the proposal. Treat any single number you read as version-specific rather than settled.
This is not a reason to avoid solar in Colorado Springs. It is a reason to insist that your quote states which tariff it assumes, and to ask your installer what your bill looks like under both options rather than only under current rates.
What the five-year grandfathering actually means
Both options as presented included a five-year grandfathering period for existing customers. Customers with net metering agreements dated before April 1, 2027 transition to the new rates on April 1, 2032.
Read that carefully, because it is a date on an agreement rather than a date on an installation. What is being tested is when your net metering agreement is dated, which is an interconnection milestone, not the day the panels went up.
That gap is exactly where a project can slip. An installation completed in good time can still land on the wrong side of an agreement date if the interconnection paperwork lags, so ask your installer to commit in writing to the date they expect your net metering agreement to be executed.
And treat grandfathering as a delay rather than an exemption. On the terms presented, a customer who signs before the deadline moves to the new rates in 2032 regardless, so a 25-year savings projection that assumes today rates for its whole length is describing something the tariff does not do.
The parts that survive without qualification
Start by removing the federal residential credit. The 30 percent Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase receives nothing from it.
Section 48E, the commercial credit, survives at 30 percent and is available to third-party owners under leases and power purchase agreements. Ask a provider what they claim and what portion reaches you in the rate, and confirm with a tax advisor.
Then remove anything Xcel-specific, because it does not apply to a Colorado Springs Utilities customer. What does apply statewide is the property tax exemption for residential systems of no more than 100 kW AC under Section 39-3-102 C.R.S., the residential energy sales and use tax exemption, and the protection against an outright association ban under Section 38-30-168 C.R.S.
What is left is your own utility tariff, and that is the number under active revision. Ask for the projection under current rates and under the proposed rates, and check the status of the September 22, 2026 adoption before you sign.