Solar panels Colorado:

Prices, incentives and best companies 2023

Avg CO solar panel cost:

$7,845 - $9,588*

Avg 25 year savings:

$23,442 - $28,651

Avg payback period:

7 - 8.5 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.

Colorado solar panels guide 2023

Updated December 7, 2022

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!

On this page:

Solar power prices, savings and payback in your part of Colorado

The average cost for an installed residential solar system in Colorado is currently $10,521 after claiming the 30% federal solar tax credit. This is $2.51 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Cost range of local prices


Net profit (savings less system cost)


Payback period

7-8.5 years

Recommended size for the selected utility bill


Solar panel cost calculator

Cash flow graph based on cash purchase of a 5.3kW system

Are solar panels worth it in Colorado

Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% 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.

Levelized cost of solar energy
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

5¢ /kWh

If you don't get solar

22¢ /kWh

(forecast avg Colorado electric rates over the next 25 years)

CO solar panel cost calculator

Best 10 solar installers in Colorado


Colorado solar incentives & tax credits

Federal solar tax credit

The most important solar incentive in the country is the federal solar investment tax credit. For 2022, you can earn up to 30% of the cost to install solar back as a tax credit on your federal taxes in the year after installation.

Net metering

Colorado does have a statewide net metering program, so the utility company will give solar owners full credit for any excess energy their panels generate and send to the grid. Net metering allows you to get huge savings on your electricity bill when you install solar panels!

Other incentives

Colorado offers sales and property tax exemptions that reduce the up-front and long-term costs of going solar.

Customers of Xcel Energy can qualify for the utility's Solar*Rewards program, which earns you a fraction of a cent extra for every kilowatt-hour of solar energy your panels generate. However, the program is currently sold out, and it's unclear if or when it will reopen. 

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Sales Tax Incentive

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Top models of solar panel installed in Colorado 2023

Average cost of solar panel installation in Colorado by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $10,788 $11,543
5kW $13,030 $13,942
6kW $15,030 $16,082
7kW $17,752 $18,995
8kW $20,328 $21,751
9kW $22,284 $23,844
10kW $24,520 $26,236

Find city information in Colorado


Best solar companies in the main cities of Colorado

Solar Companies in Denver

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Colorado

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.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2023 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Off-grid solar system

Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Colorado in 2023?

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 2023.

How much electricity do solar panel systems generate in Colorado?

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.

What are the pros and cons of installing solar panels in Colorado?

The biggest advantage in Colorado for installing solar panels is the 30% federal solar tax credit and the state's net metering policy. 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. Areas with lower electricity rates don't see as high of savings as states with high electricity prices. 

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!

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

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.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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