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Colorado is committed to clean energy, which means there are lots of Colorado solar incentives and tax breaks to help residents switch to solar energy. Solar power is on the rise in Colorado, and it currently ranks the 12th in the nation for solar power generation. In fact, 5.7% of the state’s electricity is sourced from solar systems.
Continue reading to learn more about the benefits of switching to solar energy if you live in Colorado, including the financial gains you’ll receive if you use tax incentives.
Annually, Colorado has 300 days of sunshine, making it an ideal state to generate solar energy. It’s also one of the sunniest places in America to reside. The state also led the way in renewable solar power and provides enough energy to power 452,783 homes.
To this date, there have been over 93,000 solar panel installations, and the renewable energy industry has created over 6,000 jobs.
From February 2021 to February 2022, electricity rates in Colorado spiked 8.1 percent, and inflation rates are affecting all areas of life. Plus, with Colorado homes costing 67% higher than the national average, switching to rooftop solar energy to power your home can save you money on electricity bills and put more into your pocket.
According to ElectricRate, there are 354 solar providers in the state, so you’re not short of choice to provide professional solar installation.
In Colorado, the cost of the solar panel ranges between $3.20–$4.76 per watt, depending on the system size. With this in mind, a typical solar panel installation costs between $13,302 and nearly $18,000.
Solar panels can save you around $35,000 over 20 years. This figure depends on a few factors. This includes the size of the solar energy installation, the efficiency of the solar panels, the side and orientation of your roof, and more.
|Federal Solar Investment Tax Credit (ITC)||Colorado homeowners can receive a 26% discount when they purchase home solar systems.||December 31st, 2022|
|Colorado Solar Sales Tax Exemption||Colorado will exempt you from paying any state sales tax when you purchase a solar panel system.||None|
|Colorado Solar Property Tax Exemption||This incentive excludes the added value of a solar panel system from a home’s value in Colorado.||None|
|Colorado Net Metering||This program allows homeowners to offset their unused solar generation on the grid for their next energy bill.||None|
The ITC is a tax credit that homeowners in Colorado (and other states) can claim on federal income taxes for a percentage of the amount of money it takes to run a solar panel system. To be eligible, the energy-saving system must be installed during the tax year and generate electricity for a home (or homes) in the United States.
Congress passed an extension of the ITC, providing a 26% tax credit for any solar panel system installed between 2021- and 2022. This also applies for systems installed in 2023, though systems installed before December 31, 2019, were eligible for a 30% discount. Unless Congress renews the ITC, this tax credit expires at the beginning of 2024.
Colorado is focusing on powering the entire state with renewable energy by 2050. The Colorado Solar Sales Tax Exemption means that you don’t have to contribute to any state sales tax when you purchase a solar panel system.
The state of Colorado has implemented a Property Tax Exemption. This means that you don’t have to pay any property tax on the increased property value when you sell your home due to the solar panel installation adding value.
The net metering program allows you, as a solar panel homeowner, to connect your solar energy production to your local public power grid and sell any excess solar energy that you don’t use, and apply for credit to your future electricity bills.
The City of Boulder’s NonProfit Solar Grants Program assists nonprofits and businesses in helping with their solar needs.
The Rural Energy for America Program provides grant funding and loan financing to small businesses and agricultural producers for renewable energy systems to provide improvements in their energy efficiency.
To be eligible for this program, you must be a United States citizen or reside in the U.S. after receiving legal permanent residence. You must also demonstrate that all funds from a loan or grant will remain in the county.
You can use the funds for producing the following:
If you choose to install a solar photovoltaic system before 2032, you’ll receive 30% off the total cost of the solar system, which includes equipment and labor. At the end of 2032, this figure will fall to 26%.
The above Colorado solar incentives provide ample reasons to invest in a solar energy system to decrease your electricity bills. With plenty of sun all year round, this state also provides a range of tax incentives for installation, running fees, energy costs, and more. With that in mind, there’s never been a better time to invest in a Colorado solar panel system.
Yes. Colorado has a host of tax incentives to help you save money when implementing solar panel systems. Plus, there are specific benefits to nonprofits and businesses in the state.
You can save an average of $1,750 per year. Over 20 years, that equates to a $35,000 saving.
A typical solar panel system costs between $13,302–$17,998, with the average house costing $15,650.
There currently aren’t any companies providing free solar panels in Colorado. Although there are many tax incentives to take advantage of.
The solar rebates include Federal Solar Investment Tax Credit (ITC), Colorado Solar Sales Tax Exemption, Colorado Solar Property Tax Exemption for Residential Renewable Energy Equipment, Colorado Net Metering, and two cash rebates.
There are nearly 30,000 Colorado homes with solar panels installed, making the state the 12th in the nation for solar power.
Thanks to the state’s Property Tax Exemption, you won’t have to pay a higher property tax if you choose to install solar panels.
At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:
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