Colorado solar rebates and tax credits calculator

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.

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.

Solar guides for your Colorado city

For more information about going solar near where you live, check out the following resources:

Useful links

Related solar news

Ben Zientara

January 26, 2021

The state of net metering in the United States in 2021

This annual report ranks the states for friendliness to home solar based on their net metering programs.

Net metering

Ben Zientara

July 2, 2020

Low-income solar incentives in the US

Across the US, several states have programs that provide free solar panels for low-income households.

Solar financing Solar incentives

Ben Zientara

January 21, 2019

What is a solar carve-out?

A solar carve-out is a law that sets a specific goal for electricity generation from solar panels. Solar carve-outs in the United States often include incentives that reward solar owners for the energy their panels generate. The incentives can be worth th

Solar 101 Solar incentives

Ana Almerini

March 4, 2021

Everything you need to know about installing solar panels on boats

Adding solar panels to your boat will keep your battery charged and your appliances running, from a quick fishing trip to sailing an entire open ocean.

Solar panels

Zeeshan Hyder

March 3, 2021

Jinko Solar: reviewing the world’s biggest panel maker

Jinko Solar makes a lot of solar panels — but are they a good choice for your home? Here’s a complete review of the Chinese solar giant.

Solar panels

< >

1 of 1