CO SB261

Increases the allowable capacity for customer-sited renewable energy generation facilities from 120% to 200% of average annual consumption for investor-owned utilities, removing artificial barriers to solar installations.

Expands net metering eligibility to allow off-site renewable generation on noncontiguous property owned or leased by customers within the utility's service territory, with a reasonable transmission charge deducted from credits.

Requires utilities to establish transparent processes for approving meter collar adapters within 60 days, enabling customers to interconnect distributed energy resources and isolate systems for energy backup purposes.

Mandates utilities reserve capacity equal to 0.25% of annual retail sales for off-site customer-owned distributed generation in 2022-2023, with the Public Utilities Commission setting future limits based on market demand.

Appropriates $91,488 to the Public Utilities Commission for fiscal year 2021-22, including 1.0 FTE position and operating expenses to implement the act.