Electricity Rates in Colorado
Average residential electricity cost, utility comparison, and solar savings potential for Colorado homeowners.
Electricity in Colorado averages $0.14/kWh and about $127/month — here is how that compares and how solar lowers it.
- The average residential electricity rate in Colorado is $0.14/kWh, 12% below the U.S. average of $0.16/kWh.
- The typical Colorado household pays about $127 per month for electricity.
- Colorado has a regulated market — the local utility sets the rate.
- Solar panels cut a typical Colorado bill by about 84% (around $107/month) and lock in costs for 25+ years.
What is the average electricity rate in Colorado?
The average residential electricity rate in Colorado is $0.14 per kWh, which is 12% below the national average of $0.16/kWh.Colorado homeowners pay an average of $127 per month for electricity, based on typical usage of 904 kWh per month.
Colorado electricity rates have been increasing as Xcel Energy transitions to cleaner energy sources. Solar panels help homeowners lock in energy costs and benefit from the state's 300+ days of sunshine.
Which electric utilities serve Colorado?
| Utility Company | Avg Rate ($/kWh) | Customers | Est. Monthly Bill |
|---|---|---|---|
| Xcel Energy | $0.14 | 1.5M | $127 |
| Colorado Springs Utilities | $0.12 | 230K | $108 |
| Black Hills Energy | $0.13 | 100K | $118 |
Can solar lower your Colorado electricity bill?
Without Solar
- Monthly bill: $127
- Annual cost: $1,524
- 25-year cost: $38,100
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $107
- Annual savings: $1,284
- 25-year savings: $37,000
- Rate: Locked in for 25+ years
Electricity Rates FAQ - Colorado
The average residential electricity rate in Colorado is $0.14 per kilowatt-hour (kWh), which is 12% below the national average of $0.16/kWh. The average monthly electric bill is approximately $127.
With solar panels, Colorado homeowners can reduce their electricity costs by approximately 84%, saving around $107 per month or $37,000 over 25 years. The 30% federal tax credit further reduces the upfront cost.
The largest electric utilities in Colorado include Xcel Energy, Colorado Springs Utilities, Black Hills Energy. Rates vary between utilities, so your exact cost depends on your provider and usage.
Yes, electricity rates in Colorado have been increasing over time, following national trends of 2-5% annual increases. This upward trend makes solar panels an increasingly attractive investment since they lock in your energy costs for 25+ years.
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