Community Solar Gardens and Community Geothermal Gardens
Administered by Xcel Energy, Black Hills Energy
If you live in Xcel Energy or Black Hills Energy territory, you can subscribe to a share of an off-site community solar or geothermal garden and get bill credits at the total aggregate retail rate, with unused credits rolling over indefinitely. Your subscription must be at least 1 kW and no more than 120% of your average annual electricity use, and the garden must be in your utility's territory. Income-qualified households can get help applying through Energy Outreach Colorado, and starting in 2026 at least 51% of inclusive community solar capacity is reserved for income-qualified subscribers.
Customers who can't or don't want to install rooftop systems can subscribe to your garden and receive bill credits at the total aggregate retail rate. Gardens in investor-owned utility territory must have at least 10 subscribers, subscriptions of at least 1 kW and no more than 120% of a subscriber's average annual use, and generally a size of up to 5 MW (up to 10 MW in preferred areas), while geothermal gardens must be under 5 MW. Inclusive projects must reserve 51% of capacity for income-qualified subscribers with no single subscriber holding more than 40%, and Xcel must offer consolidated billing.
H.B. 1342 (2010) authorized community solar gardens in investor-owned utility territory, H.B. 1003 (2019) raised the size cap to 5 MW and loosened the county location rule, S.B. 118 (2022) added geothermal gardens under the same rules, and S.B. 207 (2024) restructured the solar program. Starting in 2026, Xcel must offer 50 MW per year and Black Hills 3.5 MW per year of inclusive community solar capacity, with 51% reserved for income-qualified subscribers and a 40% cap per subscriber. Municipal utilities and cooperatives may offer gardens voluntarily, and cooperatives using them for renewable standard compliance must keep them at 2 MW or less, with any renewable resource allowed and with discretion over credit rates, REC ownership, and low-income provisions.
Program details
- Program ID
- 22137
- Last updated
- 3/9/2026
Eligibility
- Sectors
- commercial industrial local government nonprofit residential schools state government federal government agricultural multifamily residential low income residential
- Technologies
- geothermal electric solar photovoltaics
Program summary
H.B. 1342 of 2010 authorized the development of community solar gardens (CSGs) in the service territory of investor-owned utilities in Colorado. H.B. 1003, enacted in 2019 increased the maximum size of a CSG from 2 megawatts to 5 megawatts, and allowed the Public Utilities Commission (PUC) to increase the maximum size to 10 megawatts beginning July 1, 2023. The legislation also removed the requirement that a CSG subscriber's identified physical location be in the same or adjacent county as the CSG, though both locations must be within the service territory of the same investor-owned utility.
A facility must have at least 10 subscribers. Subscriptions must be at least 1 kW and cannot exceed 120% of the subscriber's average annual electricity consumption. Subscribers are credited at the total aggregate retail rate, and any unused credits are rolled over indefinitely. Income-qualified subscribers can receive assistance with their application through Energy Outreach Colorado.
S.B. 207 of 2024 made major changes to community solar. Starting in 2026, Xcel Energy must offer an annual capacity allocation of 50 MW, and Black Hills an annual capacity allocation of 3.5 MW, for inclusive community solar capacity. Inclusive community solar projects must make 51% of capacity reserved for income-qualified subscribers, with no more than 40% of each facility's subscription going to any one subscriber. The subscription size and facility size requirements remain the same, except that facilities located in preferred areas may have a capacity of up to 10 MW. The bill also requires Xcel Energy to offer consolidated billing.
Community Geothermal Gardens
In 2022, S.B. 118 created the Community Geothermal Gardens program. A community geothermal garden is defined as a geothermal facility under 5 MW that produces electricity from the earth's heat. The rules for the geothermal program are the same as for solar program.
Investor-Owned Utilities
- Black Hills Energy program website
- Xcel Energy program website
Municipal Utilities and Electric Cooperatives
Municipal utilities and cooperatives are not required to offer community gardens, but can voluntarily offer them if they choose. If a cooperative wants to use a community garden to meet its renewable energy standard requirements for retail distributed generation, it must follow certain rules: it must be 2 MW or less, located within its service territory, and must generate electricity for the beneficial use of subscribers who are cooperative customers. A facility must have at least four subscribers if 50 kW or less, and at least 10 subscribers if over 50 kW. Subscriptions cannot exceed 120% of the subscriber's average annual electricity consumption. Cooperatives' gardens do not have to use solar or geothermal specifically; any renewable energy resource is eligible. Cooperatives have the right to determine the credit rate, REC ownership, low-income provisions, and other rules.
Contact & resources
- Contact email
- coloradoenergyoffice@state.co.us
Please verify current program details with the administering agency before making any financial decisions.
