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Distributed Energy Resources Requirements

Concerning requirements to foster distributed energy resources in the state.

HB26-1225 2026 Regular Session Signed into Law Energy

Cost estimates

At the first note read
$220,233
FACT March 10, 2026
At the last note read
$0
FACT July 29, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation is required.

Bill summary

     Under current law, each subscriber to a community solar garden receives a net metering credit to their electric bill. The community solar subscriber organization can choose between a fixed bill credit or a bill credit that is adjusted annually. The act states that, on and after October 1, 2026, a subscriber organization may choose a fixed bill credit for the subscriber organization's income-qualified subscribers and a bill credit that changes annually for the subscriber organization's other customers. The public utility providing the bill credit must adjust the fixed bill credit annually to ensure that the credit remains aligned with changes in electricity rates over time.

     A public utility is permitted under current law to recover its prudently incurred costs to facilitate a timely interconnection of a distributed energy resource. The act prohibits a public utility from requiring an interconnection customer to pay the costs associated with interconnection facilities and upgrades until 30 days before the public utility incurs the costs. The act allows a public utility to require an interconnection customer to provide security for the estimated full costs of interconnection at the time of mutual execution of an interconnection agreement.

     The act requires a public utility with more than 500,000 customers in the state to, on or before August 15, 2026, convene a working group to accelerate distributed generation interconnection. The working group is tasked with discussing, if applicable, a cluster and batch study process for interconnection studies and a process for the public utility to accept a surety bond for interconnection upgrade work. The working group is also directed to discuss, and the public utility is required to implement, a process for third-party interconnection studies and upgrades.

     On or before December 15, 2026, the public utility is required to file a notice with the public utilities commission (commission) that includes a report on any recommendations of the working group. The public utility is directed to make appropriate filings to implement any recommendations of the working group that require commission approval on or before January 1, 2027.

     The act specifies that any interconnection upgrades and related utility construction work performed by a contracted third party must meet applicable safety, reliability, labor, and technical standards.

     The act amends the definition of 'dispatchable distributed generation' and requires the commission to evaluate the size of off-site renewable distributed generation or storage facility and installation limitations as part of a future renewable energy standard compliance plan.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)