Two very different incentive tracks
If your household qualifies as income-qualified or lives in a disproportionately impacted community, Black Hills pays $1 per watt upfront plus $0.038 per kWh produced. On a 6 kW system, the upfront rebate alone is about $6,000.
Everyone else gets $0.0025 per kWh — pennies a month. It’s free money for paperwork we’d file anyway, but the decision should rest on bill savings, not the incentive.
Room to grow into electrification
Black Hills allows systems sized up to 200% of reasonable expected consumption. If you’re planning an EV or a heat pump in the next few years, we can size for the load you’ll have instead of the bill you have today — as long as you really expect to use it, since unused surplus isn’t worth much.
Fees and paperwork
Black Hills charges a $380 application fee for systems up to 25 kW AC. We build that into the quote and handle the interconnection application.
Utility type
Investor-owned utility
How exports are credited
Exports banked 1:1 as kWh credits
System size limit
Up to 200% of reasonable and expected annual consumption.
Net metering, in plain English
As an investor-owned utility, Black Hills follows Colorado’s full net-metering statute. Excess solar is added to your banked energy for future months, and the system can be sized to supply up to 200% of your reasonable expected annual use.
Sources & dated facts
- Systems may be sized to supply no more than 200% of the customer’s reasonable and expected annual electricity consumption; excess energy is added to banked energy for future months.As of Sep 23, 2026 · source
- Application fees: $380 for systems up to 25 kW AC; $760 for 25 kW to 1 MW.As of Sep 23, 2026 · source
FAQ
Questions we hear
Does Black Hills Energy still offer a solar rebate?
Yes, under its 2023–2026 program. Income-qualified and disproportionately impacted customers can get $1 per watt; general customers get a $0.0025/kWh production incentive instead of an upfront rebate. As of September 2026 — verify current terms.
How do I know if I qualify for the income-qualified track?
Black Hills sets the eligibility rules for its IQ/DI track. We’ll point you to the current application and won’t quote the $1/W rebate until eligibility is confirmed.
What’s the application fee for home solar on Black Hills?
$380 for systems up to 25 kW AC, per Black Hills’ Colorado solar program page as of September 2026.