Xcel Energy - Solar*Rewards Program
Administered by Xcel Energy
The Solar*Rewards Program lets you install a grid-connected solar system and earn performance payments for 20 years based on the energy your system produces. If you qualify as income-eligible (0–7 kW systems), you receive $1/W upfront; residential systems up to your home's average annual load qualify, and excess generation credits to your next month's bill or can be paid out annually. Applications fill quickly when capacity opens monthly or quarterly, so check Xcel's website for current availability before applying.
You can help residential, commercial, and industrial customers access performance-based incentives on systems up to 120% of annual load, with income-qualified customers receiving $1/W upfront and commercial/industrial customers receiving $0.04–$0.0475/kWh depending on system size (8 kW to 1 MW). An additional $0.15/W adder is available for projects serving low-income or disproportionately impacted communities (subject to a $700,000 annual budget). Confirm current capacity availability with Xcel before quoting, as allocations are limited monthly for small systems and quarterly for medium systems.
Solar*Rewards operates three tiers: Income-Qualified (0–7 kW, $1/W, 0.5 MW annual cap), Commercial & Industrial (8 kW–1 MW, performance payments of $0.04–$0.0475/kWh, up to 15 MW annually), and Large (1 MW–200% of consumption, competitive bid, $4M across 2022–2024). The program purchases 20-year RECs; net metering credits excess generation monthly and pays year-end surplus at avoided-cost rates. Monthly and quarterly capacity allocations typically fill quickly; program tracks availability online to manage demand.
Program details
- Program ID
- 1255
- Effective
- 3/1/2006
- Last updated
- 9/26/2025
Eligibility
- Sectors
- commercial industrial residential low income residential
- Technologies
- solar photovoltaics
Program summary
Note: The Solar*Rewards Program has capacity limits that are allocated on a monthly basis for the Small Program and quarterly for the Medium Program. These allocations typically fill quickly when the application windows open. Check the program website for the latest information on available capacity remaining and other program updates.
Xcel Energy's Solar*Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities. Xcel purchases the renewable energy credits (RECs) produced by the systems for a period of 20 years (unless other legal provision supersedes). The size of the REC payment depends on the size of the system and the owner of the system, as shown below. The follow REC payments are in effect as of November 2015. Check the website above for changes to REC pricing.
For more information, visit the program website or view Xcel Energy's approved 2014 Renewable Energy Standard Plan.
Income Qualified On-Site Solar Program (0 – 7 kW) – Standard Offer
The IQ Program offers $1/W for eligible systems. The performance payment is set at $0.00/kWh. The annual capacity limit is 0.5 MW.
Commercial & Industrial Program (8 kW - 1 MW) – Standard Offer
The C&I Program offers a performance payment based on the size of the system. Systems between 8 - 250 kW receive $0.04/kWh. Systems between 250.1 - 500 kW receive 0.0475/kWh for eligible systems. Systems between 500.1 kW - 1 MW receive $0.045/kWh. Up to 15 MW of capacity will be approved for each year. There is also an upfront adder for projects that serve income qualified customers or disproportionately impacted communities of $0.15/W; the adder has an annual budget of $700,000.
Large Program (1 MW - 200% of a customer's annual consumption) – Competitive Bid
Under the Large Program, Xcel is offering up to $4 million across the timeline of its 2022-2024 Renewable Energy Plan.
Net Metering
Net metering is available for Xcel Energy's customers, with net excess generation (NEG) at the end of a monthly billing period credited to the next month’s bill. If a customer has NEG at the end of a calendar year, the customer will be paid for the credit at a rate comparable to the utility's avoided-cost rate, or the customer may make a one-time election to have the NEG carried forward from month to month indefinitely as a kilowatt-hour credit.
Contact & resources
- Contact email
- solarprogram@xcelenergy.com
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
