Battery under Option 1 (time-of-day credits)
CSU’s published Option 1 components price summer on-peak energy at about $0.31 per kWh for access and facilities alone, against about $0.08 off-peak, plus a higher cost adjustment on-peak. A battery that stores midday solar and runs the house through the evening turns low-value exports into high-value avoided purchases.
Battery under Option 2 (demand charge)
The demand charge is billed per kW per day based on your highest 15-minute net draw during on-peak hours — CSU lists $0.3608 per kW per day in summer, roughly $11 per kW over a 30-day month. A battery that caps your evening draw at, say, 2 kW instead of 8 kW is worth real money every month, and it keeps working when you forget.
Timing: state credit ends, CSU program pending
Colorado’s 10% battery income-tax credit covers tax years through 2026. CSU’s reported battery program isn’t expected until about March 2027, with no published terms. Waiting might gain a CSU incentive but lose the state credit; we’ll lay out both paths with real numbers when you ask.
Utility type
Municipal utility
How exports are credited
Exports credited at the time-of-day rate when sent
System size limit
200% (raised from 120% under the 2026 changes).
Net metering, in plain English
Today, CSU credits excess solar as kWh that offset later usage, with summer surplus carrying into winter. Under the new structure, new customers choose Option 1 (a $1.00/day grid access charge, time-of-day rates, and separate on-peak and off-peak dollar credits with no monthly kWh rollover) or Option 2 (a demand charge on the highest 15-minute on-peak demand each month, a flat per-kWh rate, and kWh rollover). The system-size cap rises from 120% to 200% of usage.
Time-of-use: CSU’s Energy Wise time-of-day rates use a 5–9 pm Monday–Friday on-peak window. Under the new net-metering Option 1, solar customers are billed and credited on those periods, with summer on-peak energy priced roughly four times off-peak in CSU’s published components.
Sources & dated facts
- Customers with net metering agreements dated before April 1, 2027 transition to the new net metering rates on April 1, 2032.As of Sep 23, 2026 · source
- Option 1 (Grid Access Charge): Access & Facilities $0.7269/day + new Grid Access Charge $1.0000/day; per-kWh A&F summer on-peak $0.3089 / off-peak $0.0772, winter on-peak $0.1544 / off-peak $0.0772; Electric Cost Adjustment on-peak $0.0411 / off-peak $0.0206; Electric Capacity Charge $0.0066/kWh. On-peak is 5–9 pm Monday–Friday. No monthly kWh rollover.As of Sep 23, 2026 · source
- Option 2 (Demand Charge): A&F $0.8265/day; demand charge per kW per day on highest net 15-minute on-peak monthly demand — summer $0.3608, winter $0.2462; A&F $0.0294/kWh; ECA $0.0233/kWh; ECC $0.0066/kWh. Monthly kWh rollover kept for existing customers.As of Sep 23, 2026 · source
- CSU estimates both options increase a typical solar customer’s bill by about $38/month (calculated with 2027 rates); news coverage reported $30+/month.As of Sep 23, 2026 · source
FAQ
Questions we hear
Do I need a battery with solar in Colorado Springs now?
Not required, but it matters more than before. Under either new CSU option, a battery that covers 5–9 pm weekday usage or caps evening demand captures value that solar alone can’t.
Does Colorado Springs Utilities offer a battery rebate?
Not as of September 2026. News coverage reported a CSU battery program planned for about March 2027; terms haven’t been published.
Should I wait for the CSU battery program?
It’s a trade-off. The 10% state credit covers batteries bought through tax year 2026; the CSU program’s timing and amount are unknown. If backup or the demand charge matters to you now, waiting has a cost too.
How does a battery lower a demand charge?
It discharges when your home’s draw spikes during on-peak hours, so the grid sees a smaller peak. The demand charge is based on that single highest 15-minute net draw each month.