How much do solar panels cost in Denver, Colorado and what is the payback period?
Individual panel prices
Prices of DIY kits
Installed system prices
For most homeowners, reasons to install a solar system in Denver Colorado break down into personal priorities. Many people are motivated by environmental concerns. Others are driven by the idea of being more self-reliant. One thing they all have in common, however, is the desire to save money by generating their own power.
The state of Colorado offers a range of incentives to encourage residents to go solar, including:
A net metering program that pays homeowners for additional energy generated by their solar systems.
Community solar initiatives, which enable residents to sign up to an off-site solar system even if they don’t own property or have a suitable roof surface for solar.
Tax breaks, such as:
Sales and Use Tax Exemption for Renewable Energy Equipment, which eliminates the payment of sales tax when you buy a solar system,
Property Tax Exemption for Residential Renewable Energy Equipment, which helps homeowners avoid higher taxes on increased resale value resulting from a solar installation.
Colorado Energy Mortgage Incentive Program, which offers cash incentives up to $8,000 towards the mortgage for energy-efficient upgrades and installations.
Deciding on the right solar system depends on various factors. Some panels offer higher efficiency ratings than others. Combine these with individual circumstances such as the direction and pitch of your roof, the amount of energy your household uses, and anticipated future requirements. Contact an authorized solar energy installer and ask for a comprehensive quote incorporating various equipment and financing options.
Finding an installer for your Denver, Colorado solar system begins with research. Look online for companies serving your particular area, because they have intimate knowledge of the local climate, government regulations, as well as the building and electrical codes affecting your home. They are also likely to have a good understanding of Denver permitting requirements, which will help avert delays in your installation.
Check the company’s license and credentials, and ask for an evaluation and quote. Ask about the equipment they recommend, and request calculations that show the financial savings you can expect to generate.
Use our solar calculator to determine whether their numbers align with industry standards. Read reviews from former clients, and request contact details for personal references. When you’re spending thousands of dollars and entrusting your home to a vendor, it’s reasonable to ensure they know what they're doing.
Absolutely. Environment America shows Denver is ranked 10th in the nation for solar power. The city is reported to experience 300 days a year when the sun appears, making it exceptionally good for solar energy. While this fact is disputed in some quarters, people agree Colorado is one of the sunnier states. The support offered by the local government for solar initiatives means authorities actively work to promote and encourage installations.
Apart from the financial benefits of going solar in Denver, Colorado, you can look forward to multiple other advantages. These include:
Energy independence. While the area isn’t known for extreme weather events, cold winters make energy security an important factor. This applies especially to households with vulnerable members, such as those who use electrical medical equipment for survival.
Reduced environmental impact. In the U.S., around 29% of global warming emissions come from the use of fossil fuels like coal and natural gas to generate electrical power, according to the National Renewable Energy Laboratory (NREL). Going solar can reduce your carbon footprint by 100,000 pounds during the life of your installation.
Financial security. In addition to increased home value as well as the cost savings and returns you receive from net metering, you’re protected against energy rate hikes in the future. This helps achieve financial security, which is important for your peace of mind.
The more households that choose to go solar in Denver Colorado, the cleaner the region will be, which contributes to improved public health. In addition, the higher the demand for solar the more jobs will be created in the sector, which benefits everyone who lives in the state.
Denver offers options including rooftop solar, community solar, solar generators, and solar water heaters. There’s also a Green Roof Initiative, which encourages all new buildings over 25,000 feet to dedicate a portion of roof space to vegetation. With Denver’s metropolitan area growing rapidly at 1.5% per year, reducing the footprint is important. Green roofs are expensive to implement, but that’s the only negative factor in the initiative.
Installing a solar system in Denver, Colorado is typically less expensive than the national average. Quotes from a cross-section of installers show prices ranging from $6,600 for a 3kW system to $26,600 for 12kW installations.
This compares very favorably with the average U.S. prices of more than $8,550 for a 3kW and $34,200 for a 12kW system. Find out what the average cost is for a solar electric system in your zip code by using this online tool.
The payback period is the length of time it takes to break even on your investment. Comparing payback periods of various quotes will help determine when your installation will begin earning money. This is calculated using:
the net cost of installation, minus tax breaks and incentives you are eligible for
the system size you choose and the equipment included
average monthly electricity costs,
estimated power generation.
Identify your total cost and divide it by the annual financial benefits. This gives you the number of years in your payback period, after which you count the returns as financial gain. Given that the average payback period varies between 5 and 10 years while warranties last up to 25 years, your savings after payback can add up to well over $20,000.
Some solar installers use inflated estimates of utility price growth to make it seem like savings will be higher than they likely will. It’s time to stop.