Colorado solar rebates and tax credits calculator

Solar incentive

Federal ITC 30% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your home's location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Colorado solar incentives 2024

The state of home solar in Colorado is strong! 100% of electricity now needs to come from carbon free renewable sources by 2050. Residents of the most populous areas continue to benefit from Xcel’s solar rewards program which pays extra for solar credits over 20 years. Way to go, lawmakers!

Xcel has released a nice program called Solar*Rewards, which earns you a little extra money for every kilowatt-hour of electricity your panels generate.

Rebates continue to be available for residents of Boulder and Colorado Springs, too. All in all, Colorado is a great place to go solar, and we know expert local installers. If you're ready to see how much you can save with solar on your roof, use our calculator above to get started.

On this page, you can:

  1. Learn what solar incentives are available to Colorado homeowners

  2. See what Colorado solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Colorado solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Colorado

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

Net energy metering in Colorado

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

In short, net metering makes sure that you get credit, either in energy or in cash, for every bit of solar energy your panels produce. Your utility will track how much solar energy you produce and how much you use, and the utility will "store" any extra your solar system produces. At night or on cloudy days, the utility credits your surplus power back to you.

Net metering is one of the keys to successful solar policy, and Colorado may just have the best net metering laws in the country. The state requires utilities to pay you for the net excess energy that your system produces over the course of a year. So if you’re smart about your energy usage, your solar panels can actually turn a profit! The utility company will literally cut you a check at the end of the year for any extra solar juice you’ve contributed to the grid.

Colorado makes taking advantage of those savings even easier, allowing you to opt either for the check or to simply roll your extra credit to any subsequent monthly bills.

Colorado solar rebates

The real vein of Rockies gold for solar comes from Colorado’s utility companies. They have to meet the state’s renewable portfolio standard guidelines, so they’re willing to help you put solar on your roof, just for joining the world of electricity generation.

Truth be told, though, the big, fat rebates of years past are all but gone in the Rocky Mountain State. The good news is prices for solar have dropped by about the same amount of the erstwhile rebate money! The rebates worked!

Xcel's Solar*Rewards performance based incentive

If you’re lucky enough to be an Xcel customer in Colorado, you should definitely sign up for their Solar Rewards program. It pays you on an ongoing basis for the amount of kwh you produce with your solar panels.

You sign a contract to give your renewable energy certificates to Xcel for 20 years. They will pay you for the first 10 years at a rate of $.07/kwh, which is huge!

On an average sized 6kW system, you can expect to reap about $700 annually or $6,500 over those ten years.

Property and sales tax exemptions

A solar installation adds tens of thousands of dollars in value to your home. The good news in Colorado is that homeowners who go solar will not pay a single, solitary, Denver-minted penny in taxes on that value. Thanks, Colorado!

Also, when you install a residential solar system in Colorado you are exempt from 100% of related sales and use taxes. Now that’s how we like our renewable energy laws: simple, smart, and saving you money.

Low income solar grant program in Boulder

In 2020, the city of Boulder created a hefty home solar grant program. Income-qualified homeowners making less than $82,000 a year for a family of 4 can receive up to 50% of total project costs after rebates, incentives and tax credits are subtracted.

While that’s a good chunk of change, we’re curious to know how many residents will qualify, given Boulder’s relatively high living expenses. We’d love to see similar types of programs offered across more diverse areas of the state.

Cost of solar panels in your part of Colorado after all applicable solar incentives

Solar prices near you

Cost range of local prices

$16,341-$19,973

Payback period

8-9.8 years

Net profit (savings less system cost)

$42,997-$52,551

Average size system installed in CO in 2024

10.1kW

Solar panel cost calculator

Best 10 solar companies in Colorado

103 solar companies in Colorado provide pricing on SolarReviews. Here are the best rated companies near you.

Solar guides for your Colorado city

For more information about going solar near where you live, check out the following resources:

Find local city information

 

Related solar news