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
91 solar companies in Colorado provide pricing on SolarReviews. Here are the best rated companies near you.
4.75 41 Reviews
Latest review
Mike, 1 week ago
Smart Wave ownership tell us we fell through the cracks. $35K spent and still don’t know if all 40 panels are working. 55% reduction in energy bill; guaranteed 85%
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Latest review
Mike, 1 week ago
Smart Wave ownership tell us we fell through the cracks. $35K spent and still don’t know if all 40 panels are working. 55% reduction in energy bill; guaranteed 85%
4.72 45 Reviews
Latest review
Robert Stubblefield, 2 days ago
A friend recommended them and they more than lived up to their reputation. On time or early to every appointment. Did exactly what they said they would do. Excellent equipment and professional installation. Always willing to stop and answer my questions. Couldn't ask for anything more.
Read more
Latest review
Robert Stubblefield, 2 days ago
A friend recommended them and they more than lived up to their reputation. On time or early to every appointment. Did exactly what they said they would do. Excellent equipment and professional installation. Always willing to stop and answer my questions. Couldn't ask for anything more.
4.69 177 Reviews
Latest review
Mary Travis, 2 days ago
My system has been installed for over 3 months now and I have tried to contact someone at Freedom Solar to help explain how the system works - I have been assured it is working and I have paid my monthly bill - and my Mid-South electric bill is the same as before they system was installed. Very discerning that I can not speak to a person.
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Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Mary Travis, 2 days ago
My system has been installed for over 3 months now and I have tried to contact someone at Freedom Solar to help explain how the system works - I have been assured it is working and I have paid my monthly bill - and my Mid-South electric bill is the same as before they system was installed. Very discerning that I can not speak to a person.
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 22 Reviews
Latest review
Ingo, over 1 month
I wanted to wait a few months before leaving a review to ensure the delivery and output would be considered in this review. Our experience with Apollo Energy was truly outstanding. Every single person we spoke to between the sales process, support process, and installation team were amazing. The output and delivery is exactly as they said it would be. They made the entire process seamless, between the consultation, the price quoting process, the permitting, working with excel, the installation, and the follow up. I highly recommend working with Apollo. A+.
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Latest review
Ingo, over 1 month
I wanted to wait a few months before leaving a review to ensure the delivery and output would be considered in this review. Our experience with Apollo Energy was truly outstanding. Every single person we spoke to between the sales process, support process, and installation team were amazing. The output and delivery is exactly as they said it would be. They made the entire process seamless, between the consultation, the price quoting process, the permitting, working with excel, the installation, and the follow up. I highly recommend working with Apollo. A+.
4.66 61 Reviews
Latest review
Charles Lozner, over 1 month
Sunsense did a great job with our solar array. They were really great to work with, helped coordinate everything with Xcel for net metering, and explained everything very well. The folks that did the installation were very polite and professional.
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Latest review
Charles Lozner, over 1 month
Sunsense did a great job with our solar array. They were really great to work with, helped coordinate everything with Xcel for net metering, and explained everything very well. The folks that did the installation were very polite and professional.
Latest review
Anonymous, over 1 month
Good installation
4.64 1,453 Reviews
Latest review
Igor, 1 day ago
I got my panels installed in 6 hours vs. 1.5 days since Blue Raven brought 2 crews and they finished by 3pm! The work quality is good, county inspection got passed in 1 minute! Very happy so far!
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Latest review
Igor, 1 day ago
I got my panels installed in 6 hours vs. 1.5 days since Blue Raven brought 2 crews and they finished by 3pm! The work quality is good, county inspection got passed in 1 minute! Very happy so far!
4.56 38 Reviews
Latest review
parkerres0, 1 week ago
These guys were terrific. Honest and easy to work with in the sales process, almost 25% less than competitors. Set aggressive but clear expectations on timelines, and met all expectations. Great communication, and easy to work with. It's hard to think of a better experience.
Read more
Latest review
parkerres0, 1 week ago
These guys were terrific. Honest and easy to work with in the sales process, almost 25% less than competitors. Set aggressive but clear expectations on timelines, and met all expectations. Great communication, and easy to work with. It's hard to think of a better experience.
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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