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:
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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.
4.82 168 Reviews
Latest review
Pohlman, over 1 month
The entire process of purchasing our solar array went smoothly Tony, our sales person made the configuration and selection process easy Jack scheduled the installation to fit our schedule Ramon and his installation team arrived an hour early and completed the task in under four hours. Panel placement was great. They even painted the conduit to match the house Brandon answered all my geek questions perfectly The system turns out power to match the quote and does it in even less than bright conditions I enjoy monitoring the system on the SunPower app All in all a pleasant experience
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Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Pohlman, over 1 month
The entire process of purchasing our solar array went smoothly Tony, our sales person made the configuration and selection process easy Jack scheduled the installation to fit our schedule Ramon and his installation team arrived an hour early and completed the task in under four hours. Panel placement was great. They even painted the conduit to match the house Brandon answered all my geek questions perfectly The system turns out power to match the quote and does it in even less than bright conditions I enjoy monitoring the system on the SunPower app All in all a pleasant experience
4.72 22 Reviews
Latest review
Stephen Kinser, 3 weeks ago
Smart Wave Solar was patient, helpful, and not pushy as I came up to speed with solar and evaluated several providers and different setups. They won my business due to their approach and their proposal that met what I was looking for.
Read more
Latest review
Stephen Kinser, 3 weeks ago
Smart Wave Solar was patient, helpful, and not pushy as I came up to speed with solar and evaluated several providers and different setups. They won my business due to their approach and their proposal that met what I was looking for.
4.71 41 Reviews
Latest review
There is no better solar install, over 1 month
Complete Energy Solutions is the best contractor I've worked with in any field. As an engineer myself, I've worked with hundreds of contractors, so that is saying a lot. The value of what they deliver is so far above standard it is crazy. Great work, great people, and they always go above and beyond. I believe you couldn't not find an outfit more technically competent than this. We had issues with our county (they were totally unreasonable to start off) in getting our 25k solar ground array approved, and Matt & Jennifer worked through all the details (and headaches) with them. I can't recommend them highly enough.
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Latest review
There is no better solar install, over 1 month
Complete Energy Solutions is the best contractor I've worked with in any field. As an engineer myself, I've worked with hundreds of contractors, so that is saying a lot. The value of what they deliver is so far above standard it is crazy. Great work, great people, and they always go above and beyond. I believe you couldn't not find an outfit more technically competent than this. We had issues with our county (they were totally unreasonable to start off) in getting our 25k solar ground array approved, and Matt & Jennifer worked through all the details (and headaches) with them. I can't recommend them highly enough.
4.69 419 Reviews
Latest review
In Denver, 2 weeks ago
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, 2 weeks ago
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 21 Reviews
Latest review
Sara, 3 weeks ago
Apollo Energy made the process of getting solar easy! They walked me through each part and handled everything from HOA approval to city inspections. I didn't realize how simple it could be to get solar and I'm so happy with the final product. Thank you Apollo!
Read more
Latest review
Sara, 3 weeks ago
Apollo Energy made the process of getting solar easy! They walked me through each part and handled everything from HOA approval to city inspections. I didn't realize how simple it could be to get solar and I'm so happy with the final product. Thank you Apollo!
Latest review
Anonymous, over 1 month
Good installation
4.65 60 Reviews
Latest review
Josh H, over 1 month
With these reviews, why would you hire some guy from junction that cold called you or knocked on your door? These guys worked with us to get the size array we wanted at a price point that worked. Their in-house team of electricians even completely replaced and upgraded our panel. Go Solar ... Go Local.
Read more
Latest review
Josh H, over 1 month
With these reviews, why would you hire some guy from junction that cold called you or knocked on your door? These guys worked with us to get the size array we wanted at a price point that worked. Their in-house team of electricians even completely replaced and upgraded our panel. Go Solar ... Go Local.
4.61 1,260 Reviews
Latest review
Blue Raven Solar Review in denve, 3 days ago
Did a wonderful job through the process. Really happy with the installation and how everything went.
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Latest review
Blue Raven Solar Review in denve, 3 days ago
Did a wonderful job through the process. Really happy with the installation and how everything went.
4.58 23 Reviews
Latest review
JDR, over 1 month
Dan and his team were easy patient and professional to work with. I had been in contact with many other solar companies but Southard solar was so easy. Dan was no BS and a strait shooter. Made it easy and understandable of what I needed and what I got. After they got the permits from the city it was fast. They had a crew out the next day and I was up in running soon after. Friendly professional installers. Best in Colorado in my opinion. Highly recommend southard solar.
Read more
Latest review
JDR, over 1 month
Dan and his team were easy patient and professional to work with. I had been in contact with many other solar companies but Southard solar was so easy. Dan was no BS and a strait shooter. Made it easy and understandable of what I needed and what I got. After they got the permits from the city it was fast. They had a crew out the next day and I was up in running soon after. Friendly professional installers. Best in Colorado in my opinion. Highly recommend southard solar.
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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