Home Solar in Colorado:
Local installers, tax credits, and rebates.
4.9 ⭐ ⭐ ⭐ ⭐ ⭐ 900+ Google Reviews
Maximize your solar savings with:
Better product & prices
Colorado residents who experienced power outages in a span of ten years¹
Prices have fallen 54% over the last 10 years²
Average yearly savings for homeowner's who switch to solar³
Colorado is one of the sunniest places in the United States and boasts over 74,000 solar system installations. Much of Colorado is mountainous, but it also has plains and deserts. It is home to the city of Denver, the most populous city in the Mountain States. Colorado state government policies favor solar tax incentives. Despite relatively low energy-prices, the tax incentives and encouraging utility policies make Colorado a favorable place for businesses and residents to install solar panels and battery systems.
Let’s learn about some of those incentives, the utility policies associated with interconnection and setup, and special solar financing plans for solar panels and battery systems in Colorado.
Incentive Programs, Tax Credits, and
Solar Rebates in Colorado
|Federal ITC - 30%||Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system.|
|Instant Rebate from EnergyPal||EnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day!|
|CORE (Pitkin & Eagle Counties) Solar PV Rebate||Rebate Amount: 25% of project cost up to $2,500 Criteria: Home Energy Assessment required and connected energy monitoring system required. One rebate available per electric meter. Certifying installer must hold a current North American Board of Energy Practitioners (NABCEP) certification in PV.|
|Denver CARe Solar Rebate||To utilize this program: You must live in the City and County of Denver. You must apply the rebate to a project at an existing residence. New construction is not eligible. Project location must be in an existing single-family homes or multi-family building of 4 units or less. You must be Xcel Energy customer. If you already have a heat pump installed in your home and you're ready for solar, you can work with a registered contractor from our list to reserve a solar rebate. You can receive a rebate of $4,000 for your solar project.|
|High County Conservation Renewable Energy Rebate||This renewable energy rebates cover 50% of project cost up to $1,000. Breckenridge, Dillon, Frisco Cities in Summit County (and incorporated areas) but NOT Silverthorne.|
Find The Best Deals On Home Solar In Colorado
Colorado provides multiple solar energy rebates and incentives that help to reduce the overall cost of solar systems. Our EnergyPal Advisors can help you navigate all of the solar incentives available in Colorado and also apply them to the available solar panel offerings.
The EnergySmart Colorado program provides many local solar incentives:
- Xcel Energy pays cash monthly to solar customers through its Solar*Rewards program.
- Black Hills Energy offers a limited number of production-based incentive (PBI) opportunities every quarter. If selected, you are paid by check based on the size of your system and amount of excess energy you produce.
- Colorado Springs Utilities offers a $0.10 per watt Renewable Energy Rebate.
- The City of Aspen offers a $0.75 per watt rebate of up to $2,250 plus additional incentives for batteries and electric vehicle chargers.
- Holy Cross Energy offers a tiered incentive structure. It’s based on the size of your system and increases if you have a battery.
Colorado Rebates and Tax Breaks
Here are more details about the incentives available in Colorado:
- The Sales and Use Tax Exemption is a tax break where you don’t pay any sales tax on solar panels, systems or related equipment in Colorado.
- The Property Tax Exemption for Residential Renewable Energy Equipment provides a tax break where you won’t pay additional property taxes if your property value increases when you add a solar system (and with solar, your property value does go up!).
- There are plenty of local incentives depending on where you live and which electricity provider you have. EnergySmart Colorado gives rebates from $400 to $3,000 for home solar installations in Pitkin, Eagle and Summit counties, or in the Eagle Valley. San Miguel Power, Holy Cross Energy, Aspen Electric and Xcel Energy also have customer rebates or per-watt reimbursement programs. There are also some incentives for battery systems, solar hot-water systems and electric vehicle chargers among other energy saving measures.
Other Solar Energy Incentives
The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.
If you purchased a $20,000 system, your savings from the federal tax credit would look like this:
$20,000 X 0.30 = $6,000 savings
So if you spent $20,000 on that system, your cost would go down to $14,000. Depending on where in Colorado you live, additional rebates could save you even more.
Utility policy factors determine what your utility provider pays you for the excess power you produce and what you save on your power bill by reducing electricity usage. Colorado gets a high score for utility policies.
Net Metering and Interconnection Policy
One important policy for solar customers is called Net Metering. Net Metering is a billing mechanism that allows solar customers to push electricity to the grid for credit that can be used later, like at night when your solar panels aren’t generating power. This incentivizes people to go solar, provides clean energy for others to use and prevents waste. Some states have poorer net metering policies than others, meaning that credits may not be able to be rolled over to the next month or year, or that you don’t earn full watt-for-watt credit for your excess energy.
Colorado’s Net Metering program is highly favorable. You are paid the full retail amount for your excess energy in the form of a bill credit. Credits can be carried over into the next month, and at the end of the year, you receive a check for any excess energy you have produced.
Solar Setup Fees
You must have a bi-directional meter (necessary for Net Metering), which is installed at no cost.
Electricity prices in Colorado are on the low end. Usually you don’t want high prices, but with solar, the higher the prices, the more you save, and the more economical a solar system becomes.
According to the US Energy Information Administration, the average total cost of electricity in Colorado is $0.124 per kWh for residents. The national average for all states is $0.134 per kWh, ranging from $0.967 to $0.288 per kWh.
Rate designs are comprised of monthly fees and either a flat or tiered rate you pay for electricity. Good rate designs, which save you money when you conserve energy, are tiered and have low fixed monthly fees. Poor rate designs have flat rates and high fixed monthly fees.
Colorado is above average when it comes to the quality of its electricity bill rate design. It has many tiered rate programs and low fixed fees (around $5–$10 per month). Its mandatory time-of-use electricity rate plan, where your rate is lower during the day, also benefits solar customers. This is especially true if your system has a battery.
You still pay fixed monthly fees when you go solar because you are still tied to the grid. Being tied to the grid is a good thing, because otherwise you might not have power at night or if your system stopped working suddenly. Even if you go off of the grid and rely on a battery source, the high cost of the battery would not outweigh the low monthly fee and the savings obtained from a net metering program.
PACE stands for Property Assessed Clean Energy and is available in Colorado through the C-PACE financing program financing program. You can finance your solar system, but the low-interest, long-term loan is not attached to you; it’s attached to your home. It is paid back as a Local Improvement Charge (LIC) on your property tax bill. There is a $600 closing cost, and to qualify, your project must undergo a review to ensure it promotes utility cost savings.
Home Solar Financing in Colorado
There are three pathways to powering your home with solar energy in Colorado: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Colorado. Here's a comparison:
- Optimal Return-On-Investment
- Potential Reduction of Bills to near $0
- Enhances Property Value
Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Colorado can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.
- No Initial Expenses
- Ownership of the System
- Appreciates Property Value
Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us
- No Initial Investment Required
- Complete Maintenance Coverage
- Lower Monthly Payments
- Guaranteed Rates
Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.
Talk to your EnergyPal Advisor about financing solar options in Colorado. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.
Find The Best Deals On Home Solar In Colorado
Frequently Asked Questions
Is it worth going solar in Colorado?
In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Colorado pays around 14.37¢ cents per Kilowatthour.
What is the payback period for solar panels in Colorado?
Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Colorado averages 10.2 years.
How much are solar panels in Colorado?
As of August 2023, the average solar panel cost in Colorado is $3.44/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Colorado is $14,448 with 30% tax credit applied.
What incentives are available for solar in Colorado?
Solar installations in Colorado are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Colorado incentives, tax credits & rebates you qualify for.