Colorado homeowners are seeing changes in their electric bills thanks to Xcel Energy’s updated time-of-use (TOU) rate structure. Under this system, electricity used during high-demand periods—generally late afternoon to early evening—comes with a premium charge. If you’re looking to get ahead of these peak-hour costs and save money in the long run, installing solar panels may be one of the best decisions you can make. Here’s how.
Understanding Xcel’s New Peak-Hour Charges
Xcel Energy now charges more for the power customers use when statewide demand is highest. This often means late afternoon to evening hours, roughly 4 p.m. to 8 p.m., although specific peak periods can vary. During these hours, using major appliances like dishwashers, washing machines, or even charging an electric vehicle can lead to higher bills. If your household’s schedule or habits make it hard to shift usage outside these times, peak rates can add up quickly.
Why Solar Is the Perfect Solution to Higher TOU Rates
Solar panels generate electricity throughout the day, especially during periods of strong sunlight. As peak-demand hours approach, your panels can send surplus energy to the grid, often earning you credits through Colorado’s favorable net metering policies. Later, if you need to draw some power from the grid during expensive peak hours, those credits can offset the higher rates. By reducing reliance on grid electricity when it costs the most, solar can significantly cut your monthly expenses.
As energy prices climb—especially during peak periods—the savings from solar become increasingly valuable. This shortens the overall payback period for a solar investment, making it more cost-effective over time. And while the financial advantages are a key motivator, you’ll also be shrinking your carbon footprint, since solar power replaces the need to burn fossil fuels during the highest-demand parts of the day.
Additional Benefits of Solar in Colorado
Colorado’s climate offers abundant sunshine, even through the winter months, which translates to consistent solar energy production. The state’s net metering policy also allows you to bank excess daytime generation, giving you bill credits you can use later.
For those seeking maximum energy independence, a battery storage system can further enhance solar’s benefits. Batteries store the power your panels produce during off-peak hours and make it available during peak times, saving you even more on your electricity bill.
How Solar Side Up Helps You Navigate Xcel’s Changing Rates
Solar Side Up takes a holistic approach to designing and installing solar systems that maximize financial returns. We begin with a detailed assessment of your home’s energy usage, roof configuration, and local utility rates. Armed with this information, we create a customized proposal so you know exactly how solar can offset your peak-rate charges.
Once you’re ready to move forward, we manage every detail—from permits to interconnection agreements with Xcel. We also provide ongoing support to ensure your system continues to deliver optimal performance and savings.
Ready to Lower Your Peak-Hour Charges?
Xcel’s updated time-of-use rates don’t have to drain your wallet. By switching to solar, you can take control of your energy usage, reduce exposure to high grid prices, and play a part in building a cleaner future.
- Schedule a Free Consultation: Our experts will evaluate your home’s solar potential.
- Get a Customized Quote: We’ll show you exactly how much you could save on monthly bills.
- Start Saving: Once your system is up and running, watch the impact on your utility costs.
Don’t let rising energy prices dictate your budget. Contact Solar Side Up today, and let us help you stay ahead of Colorado’s evolving energy landscape.
