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Solar in Colorado

Quick Facts

National Ranking: 12th (11th in 2018) .

State Homes Powered by Solar: 249,924 homes.

Percentage of State's Electricity from Solar: 2.96%.

Solar Companies in State: 473 (48 Manufacturers, 232 Installers/Developers, 193 Others).

Total Solar Investment in State: $3,259.26 million.

Growth Projection: 2,636 MW over the next 5 years (ranks 9th).

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Federal Tax Credit

Uncle Sam wants you to use clean energy, that’s why the Government is helping you out by paying for 30% of your system. Yes you read that right, 30%.  This incentive was initially scheduled to end on in 2015; but fortunately for us the program was extended to the end of 2019. It’s a double edge sword, you can take advantage of this incentive, but it wont last long!

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State / Utility Incentives

The Centennial State makes it pretty beneficial for you to have solar: not only will you get paid for any extra energy you generate thanks to Colorado net metering, you’ll also be rewarded for producing clean energy and won’t even have to pay any taxes on your new system.

Local solar rebates

Many Colorado utilities and local organizations offer cash rebates to homeowners who want to install solar on their property. These are just two examples, but more local incentives are available – be sure to explore the options available in your area:

EnergySmart Colorado: Rebates of anywhere from $400 to $3,000 (depending on where you live) are available for solar installations on homes in Eagle Valley, Roaring Fork Valley, and Summit County.

Holy Cross Energy: Holy Cross has a per-kilowatt (kW) rebate for its customers to reduce the cost of going solar. The incentive is $750 for the first 6 kW, and is stepped down for larger systems. Homeowners installing an average 6kW system can save $4,500 on their installation costs with this great rebate.​​​​​​​

Tax exemptions for renewable energy equipment

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Thanks to some helpful CO tax breaks for solar, you won’t have to pay the government anything for your new solar panels. First, the Sales and Use Tax Exemption for Renewable Energy Equipment means that there won’t be any sales tax on the purchase of your system. Second, the Property Tax Exemption for Residential Renewable Energy Equipment keeps you from having to pay any additional taxes on the increased value of your house.

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Colorado State Solar Policy Resources​​​​​​​

Colorado State Energy Office – Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics

Colorado State Legislature – Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Colorado

Colorado Public Utilities Commisssion – Learn about the governing body that regulates the electricity rates and services of California public utilities

DSIRE Incentives Database - Colorado – Search a public clearinghouse for specific solar energy incentives in Colorado and across the United States