Solar panel cost and payback period in Denver, Colorado
Updated
Updated
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:
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, your household energy consumption, 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.
We recommend you search online for the local solar companies operating in your area. They will 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’s permitting requirements, which will help avert delays in your installation. Find top-rated solar companies in your area.
Once you find a company that looks promising, 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.
Next, use the solar calculator below 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 12th among U.S. cities based on the installed solar power capacity. 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, experts 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.
There are many advantages to going solar in Denver, Colorado. These include:
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 has a well-developed solar industry, offering consumers many options when it comes to solar. In addition to rooftop solar for homes, you will also find plenty of companies offering solar batteries and solar water heaters. Alternatively, you could choose to sign up for a community solar program.
There’s also a green roofs law (formerly the Green Roof Initiative), under which new buildings over 25,000 feet in size are mandated to incorporate energy efficiency and cooling measures. Compliance can be achieved by installing solar panels on-site or dedicating roof space to vegetation, among other options.
Green roofs are expensive to implement, but that’s the only negative factor in the initiative. With Denver’s metropolitan area growing rapidly at 1.5% per year, reducing the city’s carbon footprint is important.
Installing a solar system in Denver, Colorado is typically less expensive than the national average.
As of January 2023, the average cost of solar panels in Denver is $2.28 per watt. This means that a typical 6,000-watt (6 kW) solar system will cost $9,576 after claiming the 30% federal solar tax credit that is currently available.
This compares very favorably with the average U.S. price of $3.00 per watt, or $12,600 for a 6 kW system after the 30% tax credit.
You can check the average cost for solar panels in your zip code by using this online tool.
The average payback period for home solar panel installations in Denver, CO is 7 to 8.5 years.
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:
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 in Denver is under 10 years, while warranties last 25 years or longer, your savings after payback can add up to well over $20,000.