Individual panel prices
Prices of DIY kits
Installed system prices
The average cost for an installed residential solar system in Colorado is currently $10,834 after claiming the 26% federal solar tax credit. This is $2.44 per watt.
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Prices based on a 5.3kW system, after 26% federal tax credit
Note: Prices after 26% Federal Solar Tax Credit
Colorado is one of the best states to live in, and because the people who live there care about the natural environment, it’s also one of the best places to add solar panels to your home. The state has a commitment to get 100% of electricity from renewable sources by 2050, and you can be a part of that. Luckily, Colorado makes it easier by offering a few great incentives to help reduce the cost!
Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
(forecast avg Colorado electric rates over the next 25 years)
The most important solar incentive in the country is the federal solar investment tax credit, or ITC for short. For 2020, the ITC can earn you up to 26% of the cost to install solar back as a tax credit on your federal taxes in the year after installation. At the end of 2020, the amount of the credit will decrease from 26% to 22%.
Colorado does have a statewide net metering program. This means the utility company will give solar owners full credit for any excess energy their panels generate and send to the grid.
Colorado offers sales and property tax exemptions that reduce the up-front and long-term costs of going solar.
If you’re an Xcel customer (over half the state), you can qualify for a special program called Solar*Rewards, which earns you an extra few cents for every kilowatt-hour (kWh) of electricity your solar panels generate. That might seem like small potatoes until you learn that the average-sized home solar system in Colorado generates about 9,500 kWh per year, earning its owner close to $700 in Solar*Rewards payments. That’s pretty great!
Eligibility: Federal incentive
Type: Personal Tax Credit
High Country Conservation Center - Energy Smart Colorado Renewable Energy Rebate Program - Summit County
Eligibility: Local incentive
Type: Rebate Program
(After tax credit)
(After tax credit)
You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.
Minimum of 25 years but generally 30 or more
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter where the direct current (DC) electricity is converted into alternating current (AC) electricity that can be used by your home or exported to the electric grid.
Off-grid solar power involves meeting all your energy needs from the power of the sun. There’s no utility to fall back on. This means the solar installation needs to power the home not just during the day, when the sun is shining, but after dark as well.
Read more about types of home solar systems.
No, but cleaning them can improve power generation if they are dirty.
Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Colorado will fall during 2020.
Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar.
Reasons for this include:
SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US.
Depending on the location, solar panels will generate different amounts of electricity.
A solar system that is installed on a south-facing 27-degree pitch roof Colorado will generate 1,150kWh of peak DC (direct current) capacity per year per 1kW in the Denver area.
Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.
The biggest advantages in Colorado for installing solar panels are the Xcel Energy Solar*Rewards program and the 26% federal tax credit. Colorado also offers those solar tax exemptions that make doing the right thing easier by reducing cost and uncertainty.
One downside to installing solar panels in Colorado is the relatively low cost of electricity here. At about $.12/kWh, Colorado is below the national average of $.13/kWh. That means if you’re not an Xcel customer, you might find the financial benefits of solar to be less great than they are in other states.
Still, Colorado rooftops get lots of sun, meaning every solar panel generates more electricity here than it does in cloudy states at higher latitudes. With incentives set to go away soon, now is the time to see how much you can save with solar in the Centennial state!
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Colorado solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
Alabama Power has been approved to implement a high monthly charge on solar homeowners that will drastically reduce electric bill savings.