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Proposed changes for solar customers

Customers with solar have a net metering agreement. In 2026, we are exploring options to update how solar customers interact with our grid and help us provide reliable electricity to our community.

What is net metering?

Net metering lets customers receive credits for solar energy they generate from their own panels that isn’t used right away. The credits are kilowatt hours (kWh) that are used from the electric grid at a later time. Credits are typically used at night when solar panels aren’t generating, and surplus credits from summer can carry over into the winter.

What’s the challenge?

A collection of solar panels on the rooftop of a single family home on a sunny day.Today, about 11,000 customers have solar and exchange energy with our grid.

Under current rates, the cost related to serving solar customers is not fully reflected.

This has caused a growing cost shift between solar and non‑solar customers, which is important to address thoughtfully and with community input.

What is being proposed?

The conversation is not about whether solar is valuable. Rather, it's about aligning rates with how our community's electric system works, so costs are shared in a way that is fair, predictable and sustainable for the entire community.

Five-year grandfathering

Customers with net metering agreements dated before April 1, 2027, will transition to the new net metering rates on April 1, 2032.

Increase in eligible system size from 120% to 200%

With a modernized net metering rate, solar system sizes have more flexibility. We are proposing to increase the cap on system sizes to 200%.

Two rate options

Customers choose which rate option makes the most sense for them.

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Option 1 - Grid Access Charge

A fixed daily charge with Energy Wise time-of-day rates.

  • Monthly bill will be more predictable and stable.
  • On-peak (5PM-9PM, M-f) and off-peak times for usage and generation.
  • Less control over your bill.
  • Monthly rollover of kWh credits is not available.

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Option 2 - Demand Charge

A charge based on the highest on-peak 15 minute interval during a billing period.

  • You control your bill.
  • Monthly rollover of kWh credits can be kept for existing customers.
  • Flat kWh rate.
  • Bills can vary each month depending on highest demand.

Click the + to expand the options below to view individual charges and fees that make up each rate option.

Both options have the same estimated bill impact: an increase of ~$38/month (calculated with 2027 rates).

Public participation

1. Create a community-focused path forward. We want the future of residential solar to be sustainable through responsible cost management and aligned with the needs and priorities of the community. By engaging with the public early in the process, we aim to design a program that is fair, easy to understand and built for long-term success.

2. Provide more options for customers. Energy technology and customer expectations are changing. To keep pace, we are researching several program options for public consideration.

3. Include both solar and non‑solar customers in the conversation. Changes to the net metering program affect the entire community, not just households with solar panels. Through surveys, focus groups and workshops we’re gathering and sharing feedback from solar and non‑solar customers alike.

4. Collaborate with solar installers and industry groups. Solar installers are key partners to help customers make informed choices. We plan to collaborate with local installers and advocacy groups through workshops to align program changes with the needs of both customers and the utility.

Timeline

Jan. 2026: Customer survey closed.

April 2026:
Focus group discussions.

Spring 2026: Feedback shared with the Utilities Board and used to develop updated program options.

• Aug. 25, 2026 - Public Hearing at City Council.*

• Sept. 22, 2026: City Council to vote on proposed changes to net metering.*

Fall 2026: Workshop for solar providers and advocacy groups to learn about proposed changes and support the transition.

Fall 2026: Open house-style meeting(s) to solar customers to learn more about proposed changes.

*City Council items are tentative until the agendas are published. Please review the published agenda prior to the meeting.

A Colorado Springs Utilities employee stands and talks to two customers at a community event.

Our commitment to the community

Public input has played an important part in how this project is evolving. We know there is an issue to address and are relying on multiple inputs—including customer feedback, future research, and public meetings—to inform the decision. Throughout our public engagement process we aim to:

  • Rebuild trust through two-way communication.

  • Facilitate meaningful participation from solar and non-solar customers.

  • Strengthen relationships with solar providers.

  • Promote constructive, solutions-focused conversations. 

Questions and answers

Can the grid store electricity from solar panels?

No. The electric grid does not store electricity. Power must be used as it is generated. While utility-scale batteries are an emerging technology that we do have in our portfolio, they currently cannot store large amounts of energy for extended periods of time. This is why grid reliability depends on having flexible, dispatchable resources available during peak demand hours, especially when solar production drops.