Summary of Colorado solar incentives 2020
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 energy you produce. Your utility will track how much solar power you produce and how much you use, and the utility will ‘store” any extra power 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 2020
10.1kW
Solar panel cost calculator
Best 10 solar companies in Colorado
70 solar companies in Colorado provide pricing on SolarReviews. Here are the best rated companies near you.
4.71 40 Reviews
Latest review
Garibaldy, 1 week ago
As an "early adopter" who subsequently achieved a methane-free home, I needed to make some changes. Big-name installers would talk on the phone, & give pricey, software estimates via e-mail. They wanted a financial commitment even before coming on site. Matt showed up in person & showed me how to build upon my original setup. I avoided bells & whistles ("points of failure," his term) I didn't need & accomplished my goal for considerably less than those other bids. One less important but irksome detail received a prompt followup solution. Mat even helped me passon my old equipment in a mostly charitable but satisfying way. I'm extremely happy with my choice. This is the kind of small business that America touts but is increasingly hard to find. Go with Complete Energy Solutions!
Read more
Latest review
Garibaldy, 1 week ago
As an "early adopter" who subsequently achieved a methane-free home, I needed to make some changes. Big-name installers would talk on the phone, & give pricey, software estimates via e-mail. They wanted a financial commitment even before coming on site. Matt showed up in person & showed me how to build upon my original setup. I avoided bells & whistles ("points of failure," his term) I didn't need & accomplished my goal for considerably less than those other bids. One less important but irksome detail received a prompt followup solution. Mat even helped me passon my old equipment in a mostly charitable but satisfying way. I'm extremely happy with my choice. This is the kind of small business that America touts but is increasingly hard to find. Go with Complete Energy Solutions!
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.
4.63 948 Reviews
Latest review
Brett Huebner, 5 hours ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
Read more
Latest review
Brett Huebner, 5 hours ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
4.62 46 Reviews
Latest review
PatS, over 1 month
We've had our panels for almost 2 years and it was the best decision we've made. Peak View installed it quickly, even though they had to get parts they needed. When we were concerned about the system, Nancy Brodhagen made it clear of what we needed to know about how the weather affects how the system works. Another time we had a discussion on energy-eaters and we stopped using our space heater. That made a huge difference! I've recommended Peak View to several people. One, my sister, found that her electricity use was too small to justify getting panels! They won't up-sell you!
Read more
Latest review
PatS, over 1 month
We've had our panels for almost 2 years and it was the best decision we've made. Peak View installed it quickly, even though they had to get parts they needed. When we were concerned about the system, Nancy Brodhagen made it clear of what we needed to know about how the weather affects how the system works. Another time we had a discussion on energy-eaters and we stopped using our space heater. That made a huge difference! I've recommended Peak View to several people. One, my sister, found that her electricity use was too small to justify getting panels! They won't up-sell you!
Latest review
Jenny Lighthart, over 1 month
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4.55 28 Reviews
Latest review
Tait, over 1 month
In May 2019 Solar Power Pros installed my system and I was impressed that they submitted all of the paperwork to the local Colorado Springs Utilities to arrange for me to have net-metering. All I had to do was fill out some electronic forms emailed to me. They also arranged for the inspections and meter change (to support net-metering). I'd originally got quotes from 8 solar companies and only 3 ever called me back and only one, Solar Power Pros, had the best price. They also had the best reviews on BBB, here on solarreviews, Google reviews and Yelp. The installation went smoothly and quickly and within 1 week of the panel installation, the new meter to CSU was installed and I was generating power. I'd recommend Solar Power Pros to you.
Read more
Latest review
Tait, over 1 month
In May 2019 Solar Power Pros installed my system and I was impressed that they submitted all of the paperwork to the local Colorado Springs Utilities to arrange for me to have net-metering. All I had to do was fill out some electronic forms emailed to me. They also arranged for the inspections and meter change (to support net-metering). I'd originally got quotes from 8 solar companies and only 3 ever called me back and only one, Solar Power Pros, had the best price. They also had the best reviews on BBB, here on solarreviews, Google reviews and Yelp. The installation went smoothly and quickly and within 1 week of the panel installation, the new meter to CSU was installed and I was generating power. I'd recommend Solar Power Pros to you.
4.50 35 Reviews
Latest review
Chris Kendall, over 1 month
Our ground mount solar panel array was accidentally placed too close to our property line boundaries when our house was being built. I e-mailed Solarado Energy and explained to them my problem. Curtis answered my e-mail by calling me and said he could move the solar array. He came and explained to us step by step how he would move the array. Curtis is very knowledgeable, dependable and trustworthy. He came as often as he could as he had a full priority list at the time. I highly recommend Solarado Energy to accomplish your solar needs. Thank you Curtis.
Read more
Latest review
Chris Kendall, over 1 month
Our ground mount solar panel array was accidentally placed too close to our property line boundaries when our house was being built. I e-mailed Solarado Energy and explained to them my problem. Curtis answered my e-mail by calling me and said he could move the solar array. He came and explained to us step by step how he would move the array. Curtis is very knowledgeable, dependable and trustworthy. He came as often as he could as he had a full priority list at the time. I highly recommend Solarado Energy to accomplish your solar needs. Thank you Curtis.
Latest review
Jim Crabtree, over 1 month
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4.42 8 Reviews
Latest review
Anonymous, over 1 month
We spent quite a bit of time researching different solar companies before deciding on who to go with. Genuine Solar provided the best deal by far. The salesmen were great to work with and responded to questions in a timely manner throughout the entire process.
Read more
Latest review
Anonymous, over 1 month
We spent quite a bit of time researching different solar companies before deciding on who to go with. Genuine Solar provided the best deal by far. The salesmen were great to work with and responded to questions in a timely manner throughout the entire process.
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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