How Does Solar Energy Work?
Solar panels convert the energy created by the sun into energy that you can use in your home. Solar panels are made of photovoltaic cells, and when the sun’s rays hit these cells, they excite the electrons enough to create a direct current (DC). Solar systems are also equipped with inverters—equipment that converts DC energy into alternating current energy (AC), the type that powers your home.
How Do My Solar Panels Connect to MPE’s Grid?
The AC electricity inverted from your solar panels can be used to power your home. This power is often supplementary to the power you receive from MPE, meaning your panels power what they can, and we supply the rest. When you install solar panels on your home, you connect to our grid as a net metering member. Here are the steps to connect your solar panels to MPE’s grid:
- Step One: Invest in Energy Efficiency
- Step Two: Understand Your Electricity Use
- Step Three: Choose a Solar Installer
- Step Four: Sizing Requirements
- Step Five: Apply Before Construction
- Step Six: Approval & Installation
- Step Seven: Billing
- Step Eight: Unlock Rebates and Incentives
Learn more about connecting your home solar panels to MPE’s grid
MPE’s Grid and Net Metering
When you become a net metering member at MPE, your current meter is replaced with a net meter that monitors energy flowing from the MPE distribution system to your home and excess energy generated by your solar that is flowing onto the MPE distribution system.
The net metering accounting process allows you to bank excess energy produced by your solar panels for use in later months. This energy is calculated in kilowatt hours or kWh. These credits roll forward at a one-to-one ratio, meaning every kWh you send to the grid offsets one kWh you later use. If you have kWh in your bank at the end of March, MPE will reconcile your account by paying you the average wholesale power supply cost rate—the same rate MPE pays its wholesale supplier for bulk power—for each kWh in your bank. The spring 2025 payout rate was $0.04213 per kWh.
This payout rate is different from the retail rate you pay for electricity. Retail rates cover not only the cost of generating electricity, but also the fixed costs of delivering it—maintaining poles, wires, substations, transformers, and providing round-the-clock service. Colorado law requires co-ops to provide fair, nondiscriminatory net metering and co-ops are given flexibility to structure refunds in line with their wholesale costs and system operations.
MPE members still need to pay the monthly system access charge to MPE because while your solar panels will offset energy usage, generating energy at your home doesn’t eliminate MPE’s responsibility to maintain reliable energy infrastructure for you.
Working with a Solar Installer to Install Panels in MPE’s Service Area
- Site visit and system design—A professional solar installer will review your property for sun exposure, roof construction, and energy use, and design a system that can be installed on your home.
- Permitting—Your installer will acquire the proper permitting from municipalities and work with MPE to interconnect.
- Roof preparation—Your installer will prepare your roof for solar panel installation
- Panel installation—Your installer will place the panels on your roof. The average solar system size in Colorado is 10.47 kW.
- Wiring and grid connection—Install the inverter, new net meter, and connect to MPE’s grid.
- Inspection—An inspector will confirm that your solar system is properly installed.
- System activation—Your solar and net metering system will be activated.
How Much Do Solar Panels Power?
The amount of power you can get from your solar panels depends on a variety of factors, including how many panels you have, how efficient your panels are, and how much sunlight they are getting. In MPE’s service area, members are usually well-situated for solar power—we get to enjoy a lot of sunny days every year, and the cool mountain air helps solar systems work more efficiently. However, depending on where you site your solar panels, snow load can be a factor that influences their production.
According to Consumer Affairs, one solar panel produces approximately 25 kWh to 60 kWh per month. The average residential usage for MPE members is 700kWh/month. That means it would take 12-28 solar panels to power the average home in our service area.
Is Your Home Solar-Ready?
Before installing solar panels, you’ll want to check if your home is set up to effectively harness the power of the sun. Here are a few questions to ask before calling a solar installer.
- Which direction does your roof face? South-facing is the best for capturing the energy of the sun. West-facing roofs can also work.
- How old is your roof? If your roof was installed more than 15 years ago, you may want to replace it before installing solar panels.
- Can your roof handle the weight of solar panels? Older roofs and roofs made from certain materials might not be up to the job.
- Is there anything obstructing the sun from your roof? Large trees and buildings can prevent the sun’s rays from hitting your panels.
- Do you understand city, county, and HOA permitting requirements?
- Does your homeowners insurance cover rooftop solar?
Trusted Solar Panel Providers in MPE's Service Territory
Are you working with a trusted solar panel installer? Solar scammers try to take advantage of the growing demand for solar energy. We’ve compiled a list of our preferred solar installers to help you find a trusted provider.
MPE’s List of Preferred Solar Installers
Our criteria for preferred solar installers:
MPE’s preferred solar installers must:
- Have been in business for at least 12 months under the same leadership and corporate name
- Have received training on MPE’s interconnection policies
- Have successfully completed two or more projects in our area in the last 24 months
- Have not received a written complaint in the last 12 months from MPE’s members, and have no unresolved written correction requests from MPE
- Have signed our ethics pledge, committing them to conduct their business with integrity, honesty, and quality, and with environmental, social, and financial responsibility
- Carry contractors’ liability ($1,000,000) insurance
- Have company logos on company vehicles and workers’ uniforms
It’s also important that your solar provider can secure necessary permitting at the state, county, and HOA levels and submit an interconnection application to MPE.
If you choose not to use one of these providers, make sure you check their licenses, insurance, and reviews, and be on the look out for common scams.
Common Solar Scams
- “Free solar” promises— There’s no such thing as free solar. The reality is that solar panels can offset some of your energy costs, which pays off over time.
- “Sign today” sales tactics—Trusted installers will give you time to make a decision. If the installer is asking to sign or for a deposit with urgency, it’s a red flag.
- Overstated savings— Some companies promise that you’ll never pay for electricity again. With MPE, your solar system can offset your energy use, but you’ll still receive a bill from MPE.
- Unlicensed contractors— Reputable businesses will always have the proper licenses and insurance.
- Skipping permits or inspections— Permits and inspections are required by law in Colorado. If your installer says you can skip these steps, beware.
Using MPE’s preferred installers helps ensure you are working with a trusted provider who knows our interconnection process, helping to avoid scams and unnecessary delays.
How Much Do Solar Panels Cost?
When considering the cost of solar panels, you’ll want to consider installation, monthly bills, and ongoing maintenance.
Installation
The price to install solar panels varies depending on the size of the system, equipment, solar panel type, installer, and permitting fees. According to Energy Sage, it costs about $14,171 to install a 5 kW solar system. This estimate excludes offsets from incentives.
Monthly Bills
Understanding your current energy use and billing will help you determine the benefits you’ll get from installing solar panels on your home. Members still pay a systems fee, and your panels may not cover all of your electricity needs.
For example, the average MPE household uses around 700 kWh per month. A 10 panel solar system in our service area can typically generate 250–600 kWh per month. This sized system could offset 35–85% of your annual electricity usage, depending on your household consumption, roof space, and access to sunshine.
Becoming a net metering member does not eliminate the need to reduce energy use by making your home more energy efficient. Insulating your home and upgrading appliances can reduce how large a system you need or increase your total offsets.
Ongoing fees
Maintenance, annual inspection, cleaning and repairs are additional costs to consider; these costs will usually fall under $1,000 a year. Solar panels need to be replaced every 25-30 years.
Solar Installation Incentives
Federal, state, and local incentive programs can offset some of the initial costs associated with setting up a solar system. Use the Rewiring America calculator to search for incentive programs that fit your home. The federal investment tax credit (ITC) will end on December 31, 2025. The State of Colorado does not offer incentives for solar.
There is a lot to think about when it comes to transitioning to solar power. MPE is dedicated to providing you with the resources you need to power your home. View our solar resource page for more information.