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Last Updated March 24, 2023

Program Overview


Financial Incentive



Incentive Type:

Performance-Based Incentive


Xcel Energy

Start Date:


Expiration Date:


Web Site:

Applicable Sectors:

Residential, Low Income Residential, Commercial, Industrial, Commercial, Industrial, Commercial, Industrial

Eligible Renewable/Other Technologies:

Solar Photovoltaics, Solar Photovoltaics, Solar Photovoltaics, Solar Photovoltaics


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 0.0375/kWh for eligible systems. Systems between 500.1 kW - 1 MW receive $0.035/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 $1 million in estimated annual REC incentives for 2023, or up to $4 million across the timeline of its 2022-2924 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.