Plug-In Solar in Colorado — Legal
Bill: HB 26-1007 — Improve Customer Use of Distributed Energy Resources
Sponsor: Rep. Lesley Smith, Rep. Rebekah Stewart, Sen. Cathy Kipp, Sen. Matt Ball
Legislative Status: Signed into law by Governor Jared Polis on May 7, 2026. Colorado becomes the 4th US state to explicitly legalize plug-in solar. Passed both chambers with bipartisan support — House 48-16, Senate concurrence April 14, 2026. Provisions take effect January 1, 2027.
Current Status: Enacted — Signed by Governor Polis on May 7, 2026 (effective January 1, 2027)
Last Updated: May 7, 2026
Key Information
| Average Electricity Rate | 14.8¢/kWh |
| Estimated Annual Savings | $202/year |
| TOU Rate Spread | 6¢/kWh |
| Peak Sun Hours/Day | 5.5 |
| Retail Choice | none |
Key Provisions
Allows plug-in solar systems up to 1,920W — the highest limit of any US plug-in solar law. Prohibits utilities from requiring approval before installation. Prohibits HOAs from banning qualifying systems. Also covers meter-collar adapters. Effective January 1, 2027.
Law Provisions
| Effective Date | January 1, 2027 (signed into law May 7, 2026) |
| Wattage Limit | 1,920W AC output (for portable-scale solar generation devices) |
| UL 3700 | referenced — Not named in the bill. The law requires devices over 391W to be "labeled and listed by a nationally recognized testing laboratory" (NRTL) — broad NRTL language, not a specific UL 3700 mandate. Meter collar adapters must be approved by an NRTL. In practice, UL 3700 is the relevant standard for plug-in solar systems above 391W, and the Colorado Solar and Storage Association recommends waiting for UL-listed products or buying systems under 392W until certified products are widely available. |
| HOA Provision | HOA restrictions that unreasonably prohibit or restrict the installation, use, or operation of a portable-scale solar generation device are unenforceable and void. HOAs may require reasonable restrictions related to fire/electrical safety, damage prevention, and device location. Owners may be required to reasonably secure the device to their unit or limited common element patio, deck, or balcony. |
| Renter Provision | The bill aims to expand access to solar for renters and apartment dwellers. Renters can install portable-scale solar generation devices, and the law prohibits unreasonable restrictions on their use. |
| Utility Approval | Utility approval is not required for installation or use of portable-scale solar generation devices. However, utilities may require notification of the device's presence and size in kilowatts. Utilities must allow for customer ownership and use of meter collar adapters. |
| Permit Required | Not addressed directly for portable-scale solar devices, but installation must be in accordance with fire code requirements and applicable local building codes that pertain to health and safety. Devices with power output not more than 391W are exempt from solar photovoltaic installation requirements and building safety code provisions requiring electrical wiring alterations. |
| Backfeed/Net Metering | The bill aims to improve customer use of distributed energy resources, and meter collar adapters are intended to simplify solar interconnection. The bill prohibits utilities from requiring a production meter as a condition of interconnection for a customer-sited distributed energy resource that has a power output of no more than 10 kilowatts, implying net metering is supported. |
| Key Differences | Colorado's law sets a relatively high wattage limit of 1,920W for portable-scale solar devices compared to other states. It explicitly addresses HOA restrictions, making unreasonable prohibitions unenforceable. The law also mandates that utilities revise interconnection rules to allow for meter collar adapters, broadening access for customers. |
| Notable Omissions | The law does not explicitly waive electrical permits for all plug-in solar systems, though it exempts smaller systems (under 391W) from certain installation and wiring alteration requirements. It also doesn't explicitly mention specific net metering rates or compensation mechanisms for excess generation from portable-scale devices. |
What You Can Do
Install systems up to 1,920W without utility approval or permits. HOAs and landlords cannot prohibit qualifying systems. Renters may install after notifying their landlord. Meter collars must be allowed by all utilities. Rules effective January 1, 2027.
What You Can't Do (Yet)
Law takes effect January 1, 2027 — not yet in force. Until then, plug-in solar operates in a regulatory gray area. Certified UL 3700 systems above 391W are not yet widely available; consumers should wait for UL-listed products.
Available Rebates & Incentives
Xcel Energy Solar*Rewards offers performance-based payments (RECs) for solar generation. Income-qualified customers receive $1/W upfront rebate (up to 10 kW). Colorado property tax exemption applies to residential solar under 100 kW. Colorado sales tax exemption applies to solar components. The federal 30% ITC (Section 25D) expired December 31, 2025.
Incentive Program Links
- Xcel Energy — Solar*Rewards Program — Performance-based REC payments; income-qualified customers get $1/W upfront rebate up to 10 kW.
- Xcel Energy — Net Metering — Earn bill credits for excess solar sent to the grid.
- Black Hills Energy — Colorado Solar Program — Net metering for Black Hills Energy customers in Colorado.
- DSIRE — Colorado Solar Incentives — Full list of Colorado state and utility solar incentive programs.
Demographics (US Census 2023)
| Population | 5,877,610 |
| Total Households | 2,260,864 |
| Owner-Occupied | 1,529,040 |
| Renter-Occupied | 731,824 |
| Single-Family Homes | 1,489,960 |
| Apartment Units (5+) | 434,800 |
| Median Household Income | $91,241 |
| Median Home Value | $513,100 |
Solar Resource Data (NREL PVWatts)
| Peak Sun Hours/Day | 5.3 |
| Optimal Tilt Angle | 39° |
| Optimal Azimuth | Due South (180°) |
| Est. Annual kWh (800W system) | 1248 kWh |
| Best Solar Months | May-August |
Major Utilities
| Utility | Customers | Net Metering |
|---|---|---|
| Xcel Energy | ~1.6 million customers | Yes |
| Black Hills Energy | ~192,700 residential electric customers | Yes |
| Colorado Springs Utilities | ~215,799 residential customers | Yes |
| CORE Electric Cooperative | ~180,000 customers | Yes |
News Coverage
- Bill to Allow Plug-In Solar Panels Signed Into Law — Colorado House Democrats (May 7, 2026)
- Colorado approves balcony solar, but approved units aren't widely available yet — CPR News (May 7, 2026)
- Colorado clears path for plug-in solar, a more affordable option — Coloradoan (May 7, 2026)
- What's plug-in solar? Colorado legislators promote a bill to help eager consumers find out — Colorado Sun (February 27, 2026)