How to Lower Your Electricity Bill in Denver, CO

Why Denver bills run high

Colorado's average residential rate is about $0.140/kWh through Xcel Energy, close to the ~$0.17/kWh U.S. average — but rates have been rising at about 6.0% a year. Denver’s dry climate and wide day-to-night temperature swing — July days average an 88°F high but cool to around 60°F overnight — mean many homes get by with fans and evening cool-down instead of running central AC all day.

Six ways to cut your bill

1. 1
   Set your thermostat to 78°F (or higher) while home, higher while away. Every degree above 72°F saves roughly 1–3% on cooling costs. A programmable or smart thermostat that bumps the temperature up automatically while you're out is one of the highest-return, zero-cost changes you can make.
2. 2
   Seal air leaks around doors, windows, and outlets. Gaps around old windows and exterior doors let cooled air escape and hot air in, forcing your AC to run longer to hold the same temperature. Weatherstripping and caulk cost a few dollars and typically pay for themselves within a month.
3. 3
   Run major appliances during off-peak hours. If your utility bills time-of-use rates, running the dishwasher, laundry, and EV charging overnight or early morning — instead of during the late-afternoon peak — can meaningfully cut the effective rate you pay per kWh.
4. 4
   Unplug or switch off always-on electronics. Game consoles, TVs, chargers, and other devices left plugged in continue drawing small amounts of power around the clock. A power strip you can switch off at night eliminates this "phantom load" for the whole cluster at once.
5. 5
   Get your AC system serviced before peak summer. A dirty filter or low refrigerant charge can force a central AC system to work 10–15% harder to deliver the same cooling. A $100–150 tune-up often pays for itself within a single summer.
6. 6
   Generate some of your own electricity with plug-in solar. Colorado's HB 26-1007 now allows a permit-free, no-utility-approval plug-in solar system up to 1920W — a panel that plugs directly into a standard outlet and offsets your usage in real time. An 800W system in Denver generates roughly 1,092 kWh a year, worth about $153 at local rates.

What plug-in solar actually looks like in Colorado

Under HB 26-1007, Colorado now allows systems up to 1920W to plug directly into a standard household outlet — no permit, no electrician, no utility interconnection application. The law takes effect January 1, 2027, but you can shop and plan a system today.

Bottom line

Efficiency changes — thermostat settings, sealing leaks, shifting usage off peak hours — cost little or nothing and add up fast. Generating even a fraction of your own electricity stacks on top of those savings every month, all summer, with no ongoing cost once the system is paid for.