How Much Do Solar Panels Cost in Colorado?
March 29, 2021
Colorado is well known for its stunning natural beauty, as well as its commitment to environmental sustainability. In fact, the Centennial state has pledged to draw 100 percent of its electricity from renewable sources by 2050, making it one of the best places to add a solar panel installation to your home.
When you harness the power of the sun, you’re not only on your way to a future of clean, sustainable energy; you’re also protecting your home against rising energy costs.
The solar savings you’ll see will depend on a number of factors, including where you live, the size of your system, energy costs in your area, and your personal energy use. However, Coloradans can expect to pay, on average, about $33,000 for a 7 kilowatt (kW) residential SunPower system — and that doesn’t even factor in the tax credits and local rebates that we cover below. That average cost covers all necessary parts, including:
- Solar panels
- Mounting equipment
- Conduit and other components
- Installation labor
- Project management, including HOA approvals, permitting, and inspections
The good news is that solar power has proven to be an incredibly high-return investment, since it allows you to eliminate your monthly power bill. And best of all, the state of Colorado offers numerous rebates and incentives to help make going solar more affordable than ever. Keep reading as we cover the full spectrum of solar incentives available at the federal, state, and local levels for your Colorado home.
Ways to Save on a Solar Installation
In order to encourage widespread solar usage, governments and utility providers across the country offer various solar tax breaks and incentives to help make it as affordable as possible. We’re here to help you find and make the most of those offers, including:
- Local rebates. Renewable energy incentives from your state and local government will help drastically reduce the costs of your solar panel setup.
- Federal rebates. Thanks to the federal solar tax credit, you can currently deduct 30% of the cost of your solar panel installation on your federal taxes.
- Manufacturer rebates. Discover which manufacturers are offering generous financial incentives to make your solar installation more affordable.
- Promotions. Depending on when you purchase your solar panels, you’ll be eligible for promotions that will help you save.
Saving Money with Local Rebates
Despite the fact that Colorado lacks a state-led solar tax credit or solar rebate program, there are still a number of local governments and utility providers that offer incentives and rebates to make the switch to solar even more affordable. Depending on where you live in the Centennial State, you can take advantage of the following rebates and incentives:
- Holy Cross Energy Renewable Energy Rebate: For members who install solar panels, this program offers a per-kilowatt (kW) rebate, which includes $750 for the first 6 kW, $500 per kW for the next 6 kW, and $200 per kW for the next 13 kW of a system.
- The Sales and Use Tax Exemption for Renewable Energy Equipment: This exemption applies to the sales tax for solar panel systems purchased in the state of Colorado. Additionally, the Property Tax Exemption for Residential Renewable Energy Equipment helps ease taxes on the increased value of your time.
- Xcel Energy Net Metering: This Colorado utility provider gives solar owners electricity credits on their monthly bill for all the extra energy their solar panels produce.
- La Plata Electric Association Renewable Generation Rebate Program: Solar owners who are eligible for this rebate can receive a one-time upfront payment of $16 per kW. For systems greater than 10 kW, the rebate is valued at $1 per MWh and paid twice a year.
- Colorado Springs Utilities Renewable Energy Rebate Program: Homeowners with solar installations are eligible for a rebate of $0.20 per watt. Up to 40 percent of the total cost of the installation may be covered by rebates and tax credits.
- Mountain Parks Electric, Inc. Green Power: These rebates offer a residential maximum rebate of $1,000.
- San Miguel Power Association Renewable Energy Rebate Program: Homeowners may be eligible for rebates of $0.25 per watt, up to 3 kW or $750.
- City of Aspen Residential Energy-Efficient Rebate: This generous incentive offers homeowners a rebate of 50 percent of the total solar installation cost, and up to $300 for energy-saving projects.
Saving Money with Federal Rebates
The most significant incentive to install solar panels in Colorado is the federal solar investment investment tax credit (ITC). You simply claim the ITC on your federal income taxes, which allows you to deduct 30% of the cost of installing a solar energy system. This financial incentive dramatically cuts overall costs, making the switch to solar power more affordable for all.
Saving Money with Manufacturer Rebates
Some solar panel manufacturers offer rebates, making it easy for you to make the switch to renewable energy. SunPower periodically offers rebates of $500 or more to help offset the cost of your solar panel installation. Manufacturer rebates don’t last long, so it’s best to act quickly in order to take advantage of these incentives. Contact us to see which manufacturer rebates are available.
Saving Money with Promotions
At Freedom Solar, we offer special promotions throughout the year to help our customers save on their solar installations. Contact us to learn more about our current promotions.
Get Paid for Your Unused Electricity
Net metering (also known as net energy metering or NEM) is a utility arrangement that allows users to send their excess energy to the grid in exchange for credits on their monthly electricity bill. During times when the solar panel system is underproducing — such as at night or on cloudy days — those net metering credits offset the costs of energy used from the grid. As a result, you save on electricity costs over the lifetime of your solar installation.
Harness the Sun’s Energy for a Lifetime of Savings
The journey to clean, renewable energy — and a lifetime of free or drastically reduced electricity — is easier than ever. If you’re wondering whether solar panels are worth it in Colorado, contact us for a free solar consultation. Our friendly representatives will help review your energy bill, evaluate your sunlight exposure, and estimate your incentives and costs so that you know exactly what to expect for your Colorado home.