Average Cost per watt:
$3.41
Written by
Jamie Smith
Updated: February 2025
In 2025, an average 4.9 kW solar installation in Colorado costs about $17,799 before the federal investment tax credit (ITC) is applied.This works out to $3.41 per watt of solar installed, according to our solar experts, who calculated the average cost of solar in Colorado using data from the National Renewable Energy Laboratory, the U.S. Energy Administration, and the Bureau of Labor Statistics.
If you’re a Colorado homeowner who wants to lower their electric bill and carbon emissions, rooftop solar could be the solution for you. Let’s dive into Colorado solar panel costs, savings, and more to see if solar panels are right for you.
Going solar in Colorado costs $3.41 per watt on average, with the average-sized installation costing $17,799. After the clean energy tax credit is applied, the cost works out to be about $12,459.
However, not every house will need a 4.9 kW installation. The chart below shows the average cost of a home solar installation based on different common system sizes:
System size | Installation cost | Installation cost (after tax credit) |
---|---|---|
4 kW | $12,200 | $8,540 |
6 kW | $18,300 | $12,810 |
8 kW | $24,400 | $17,080 |
10 kW | $30,500 | $21,350 |
The cost of solar panels in Colorado is higher than the average price of residential solar across the United States, which is around $3.03 per watt. However, this is because the average solar system in Colorado is smaller than the national average of 7.2 kW, making the cost per watt higher.
You can think of it like buying a bulk pack of paper towels versus a standard one. With the bulk pack, the total cost is higher, but the price per roll of power towels is lower, as the costs of packaging and shipping are spread across more rolls. The same goes for solar — larger systems have a lower cost per watt because the costs of permitting, inspections, and labor are spread across more watts of solar.
Calculate how much solar panels cost in Colorado based on local solar installations
The cost of a solar panel installation is more than just the panels on your roof. In fact, solar panels themselves only account for a small fraction of the total installation cost. The pie chart below breaks down each cost associated with a solar panel installation:
No two solar projects are the same. The cost of a solar panel installation in Colorado will vary depending on your home’s electricity usage, the type of solar panels you buy, the solar company you choose, and the solar incentives available in your area.
Homes that use more electricity will need more solar panels to cover their energy needs. If you have more people living in your home and more electric appliances, it’s likely that you’ll need a bigger system.
According to data from the Energy Information Administration (EIA), a typical home in Colorado uses about 662 kilowatt-hours (kWh) per month. With an average electric rate of $0.15 per kWh, most Colorado homeowners are paying just over $105 for electricity each month. The table below outlines how much solar you need to buy to cover different electric bills:
Electric Bill | System size needed | Solar cost (including tax credit) |
---|---|---|
$100 | 4.9 kW | $11,689 |
$150 | 7.3 kW | $15,580 |
$200 | 9.8 kW | $20,773 |
$250 | 12.2 kW | $25,967 |
$300 | 14.7 kW | $31,160 |
The good news is that the bigger your energy bill, the more money you can save with solar panels. If you’re nervous about paying more for a bigger system size, the high savings will contribute to a shorter return on your solar investment.
There are a few different types of solar panels, but the most commonly used for home solar are monocrystalline panels. The price of solar panels can depend on the brand used. If your installer is using high-quality Tier 1 solar panels, they may cost a bit more per watt.
Most solar panels on the market today have efficiency ratings between 19% and 21% and an output of 370 to 400 watts of power in ideal conditions – with some brands offering panels with outputs as high as 440 W.
Just keep in mind that if you want bigger, more efficient solar panels, you’ll likely be paying a higher price. You can seek out cheaper solar panels; just be sure you aren’t sacrificing quality for a low price.
When looking for a solar installer, we recommend getting at least three quotes to compare prices. This way, you can also see what solar equipment is being used, the system size you’re being quoted for, and – most importantly, the cost.
But don’t just choose the cheapest quote you find. Cheaper isn’t always better, as it may be a sign that the installer is using low-quality equipment or poor installation practices. Take a close look at the solar products being used and the company’s reputation, and find one that fits your budget! The more quotes to compare, the better.
Colorado is one of the best states in the country for home solar, offering plenty of incentives and rebates that lower the upfront cost. The table below gives an overview of solar incentives offered in Colorado:
Incentive | About |
---|---|
Federal solar tax credit | Tax credit equal to 30% of installation costs, applied to federal income taxes |
Colorado solar property tax exemption | Homeowners are 100% exempt from any additional property tax from installing solar |
Colorado solar sales and use tax exemption | 100% sales tax exemption for the purchase of a solar system |
Xcel Energy Solar*Rewards | Customers of Xcel Energy who meet income requirements can receive upfront incentives for every watt of solar installed to their home |
Local incentives and rebates | EnergySmart Colorado and Holy Cross Energy offer upfront rebates to customers who install solar |
If you’re a Coloradan looking for a more in-depth guide to incentives and rebates offered in your state (including battery storage incentives), be sure to read our full article on Colorado solar incentives in 2025
With the help of Colorado's full retail net metering, homeowners can save around $100 each month, or $1,200 annually, with solar panels. That means an average solar system in Colorado will reduce household energy costs by about 98%!
In some cases, solar can cover all of your energy costs. But, depending on your Colorado utility, there might be customer charges that solar can’t offset. These charges will typically amount to about $15, which is still a lot cheaper than $105!
Your home’s savings will vary depending on your system’s energy production and a few other factors – but solar savings are guaranteed!
Calculate how much you can save on electric bills by going solar in Colorado
With Colorado’s stellar solar and renewable energy policies, getting solar is worth it for most homeowners. Net metering allows for maximum electric bill savings, and most systems can pay for themselves in under 10 years!
Using a 4.9 kW solar system, here’s what you can expect:
System information | Value |
---|---|
System Size | 4.9 kW |
Est. Power Generation | 7,808 kWh |
Payback Time | 8.9 years |
Gross Cost | $14,896 |
Net Cost after Solar Tax Credit | $10,427 |
Total Value of Avoided Utility Costs Over 25 Years | $39,344 |
Want data for your specific home? Enter your information into our solar calculator for numbers unique to your Colorado home.
When looking for a reputable solar company, there are a few criteria you should keep an eye out for:
A local solar company
In business for 5+ years
Employs their own certified installers
Good review scores
Uses good quality solar equipment
Finding the right solar installer can truly make or break your experience with getting solar. To help you avoid the bad apples of the solar industry, check out our list of verified, high-rated installers in Colorado:
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