Summary of Colorado solar incentives 2021
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:
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Learn what solar incentives are available to Colorado homeowners
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See what Colorado solar incentives you qualify for based on your utility company and city
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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
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
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
Showing data for:
Prices based on a 10.1kW system, after 26% federal tax credit
Solar prices near you
Payback period
8-9.8 years
Net profit (savings less system cost)
$42,997-$52,551
Average size system installed in CO in 2021
10.1kW
Solar panel cost calculator
Best 10 solar companies in Colorado
95 solar companies in Colorado provide pricing on SolarReviews. Here are the best rated companies near you.
4.79 51 Reviews
Latest review
David, 3 weeks ago
We went with Smart Wave because they provide a solution to still getting power from your panels even if the grid goes down, but you haven't invested in batteries yet. It didn't hurt that they also offered a gift card to Amazon for getting a quote. From our first interaction with Smart Wave to getting the system turned on, every single person we dealt with was easy to talk to, informative, and highly professional. We never had to wait on them for answers and they kept us informed on everything. Smart Wave also handled all permits, inspections, and dealt with the city for getting us approved. All we had to do is say we wanted the system and they did everything else. The install team was easy to work with and did a fantastic job installing everything. Bethany, our project manager, always got back to me within minutes or hours if I had a question and even followed up with the city when it took them longer than normal to get our power meter swapped out. I honestly have no complaints about going with Smart Wave. I would highly recommend them to anyone looking to get solar installed.
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Latest review
David, 3 weeks ago
We went with Smart Wave because they provide a solution to still getting power from your panels even if the grid goes down, but you haven't invested in batteries yet. It didn't hurt that they also offered a gift card to Amazon for getting a quote. From our first interaction with Smart Wave to getting the system turned on, every single person we dealt with was easy to talk to, informative, and highly professional. We never had to wait on them for answers and they kept us informed on everything. Smart Wave also handled all permits, inspections, and dealt with the city for getting us approved. All we had to do is say we wanted the system and they did everything else. The install team was easy to work with and did a fantastic job installing everything. Bethany, our project manager, always got back to me within minutes or hours if I had a question and even followed up with the city when it took them longer than normal to get our power meter swapped out. I honestly have no complaints about going with Smart Wave. I would highly recommend them to anyone looking to get solar installed.
4.75 48 Reviews
Latest review
Jack and Connie, over 1 month
All the proposals we received were nearly identically priced per kW for the solar array. Matt and Jennifer at Complete Energy Solutions, however, were easier to work with, provided the pros and cons for various options while explaining their proposed design, and were far more knowledgeable about the battery backup that we also wanted than the others. They answered all our questions before, during, and after installation and we're very pleased with the resulting system. We highly recommend Complete Energy Solutions.
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Latest review
Jack and Connie, over 1 month
All the proposals we received were nearly identically priced per kW for the solar array. Matt and Jennifer at Complete Energy Solutions, however, were easier to work with, provided the pros and cons for various options while explaining their proposed design, and were far more knowledgeable about the battery backup that we also wanted than the others. They answered all our questions before, during, and after installation and we're very pleased with the resulting system. We highly recommend Complete Energy Solutions.
4.74 178 Reviews
Latest review
kc, 15 hours ago
Bought my solar panels and backup Tesla battery from Freedom Solar Power. The sales, solar panel installers and the battery technicians were outstanding! Explained their process, cleaned up after themselves and even let me watch! Cherry on top was a hand-written thank you note from the CEO.
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Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
kc, 15 hours ago
Bought my solar panels and backup Tesla battery from Freedom Solar Power. The sales, solar panel installers and the battery technicians were outstanding! Explained their process, cleaned up after themselves and even let me watch! Cherry on top was a hand-written thank you note from the CEO.
4.71 27 Reviews
Latest review
Tiffany Davis, over 1 month
My husband and I recently purchased our home and were excited to get solar installed quickly. We received quotes from three solar providers and decided on Apollo Energy for several reasons: 1. The price was right. Pricing was competitive and they were offering incentives at the time. This kept our monthly payments the same as those offered by competitors but with a larger system. 2. The attachment system they use for the panels seems less susceptible to roof leaks. 3. The panels themselves are esthetically pleasing and each panel has it's own converter. 4. The transferability of the warranty upon the sale of our home in the future. Installation was seamless. Our panels were installed, inspected, and up and running in under 90 days! Every single person we spoke to at Apollo was knowledgeable about the process and what our next steps were. The installers were courteous, focused, and prompt. Communication is hands-down one of Apollo's biggest strengths. Response times on phone calls and emails were incredibly fast. It was not uncommon to receive a call or email on a weekend to answer a question. That communication carries throughout the entire company. I asked three different questions of three different people who were at our home during the process (auditor, installer, electrician) and each one knew exactly what was going on with our system. Apollo has an obvious focus on engaging with their customers to provide the best possible experience. To me, that is an incentive that weighs just as heavy as a monetary one.
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Latest review
Tiffany Davis, over 1 month
My husband and I recently purchased our home and were excited to get solar installed quickly. We received quotes from three solar providers and decided on Apollo Energy for several reasons: 1. The price was right. Pricing was competitive and they were offering incentives at the time. This kept our monthly payments the same as those offered by competitors but with a larger system. 2. The attachment system they use for the panels seems less susceptible to roof leaks. 3. The panels themselves are esthetically pleasing and each panel has it's own converter. 4. The transferability of the warranty upon the sale of our home in the future. Installation was seamless. Our panels were installed, inspected, and up and running in under 90 days! Every single person we spoke to at Apollo was knowledgeable about the process and what our next steps were. The installers were courteous, focused, and prompt. Communication is hands-down one of Apollo's biggest strengths. Response times on phone calls and emails were incredibly fast. It was not uncommon to receive a call or email on a weekend to answer a question. That communication carries throughout the entire company. I asked three different questions of three different people who were at our home during the process (auditor, installer, electrician) and each one knew exactly what was going on with our system. Apollo has an obvious focus on engaging with their customers to provide the best possible experience. To me, that is an incentive that weighs just as heavy as a monetary one.
4.69 419 Reviews
Latest review
In Denver, over 1 month
I purchased a house which was installed my Namaste Solar. Just to add more panels, they said I have to replace nearly everything. So frustrating.
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Latest review
In Denver, over 1 month
I purchased a house which was installed my Namaste Solar. Just to add more panels, they said I have to replace nearly everything. So frustrating.
4.67 62 Reviews
Latest review
MS, over 1 month
Very organized and communicative group with excellent service. Highly recommended.
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Latest review
MS, over 1 month
Very organized and communicative group with excellent service. Highly recommended.
Latest review
Anonymous, over 1 month
Good installation
4.64 1,534 Reviews
Latest review
Brad M., 1 day ago
So far so good. The company has been very friendly, knowledgable and quite patient in answering my questions. At every step in the process from initial sales meeting to installation the Blue Raven Solar representatives have been extremely helpful and seem to genuinely care that we are satisfied and that we've had all of our questions answered. Also to date, everyone has arrived around the time they said they would and finished faster than expected. The quality of both product and personnel appear to be great.
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Latest review
Brad M., 1 day ago
So far so good. The company has been very friendly, knowledgable and quite patient in answering my questions. At every step in the process from initial sales meeting to installation the Blue Raven Solar representatives have been extremely helpful and seem to genuinely care that we are satisfied and that we've had all of our questions answered. Also to date, everyone has arrived around the time they said they would and finished faster than expected. The quality of both product and personnel appear to be great.
4.64 44 Reviews
Latest review
RAM, over 1 month
Working with Solar Power Pros to get our solar system approved, install and operating was awesome! Unlike some of you competitors, your sales person was honest and patient with us from the start - no overselling and pressure! Once we made the decision, the approval and installation process was simple and painless, and your installers were very efficient. I also appreciate your consideration for military veterans. Keep up the good work!
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Latest review
RAM, over 1 month
Working with Solar Power Pros to get our solar system approved, install and operating was awesome! Unlike some of you competitors, your sales person was honest and patient with us from the start - no overselling and pressure! Once we made the decision, the approval and installation process was simple and painless, and your installers were very efficient. I also appreciate your consideration for military veterans. Keep up the good work!
Latest review
Jenny Lighthart, over 1 month
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Solar guides for your Colorado city
For more information about going solar near where you live, check out the following resources:
Useful links
Fort Collins Solar Loan Program - Offers on-bill repayment
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