Colorado has some of the best solar incentives and rebates in the country
You know what is almost as sweet as winning the Super Bowl? Saving money and the environment by going solar. From residential rooftops to community solar, the state government is doing everything it can to help you succeed with Colorado renewable energy like the Broncos do on the field.
The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.
The best solar rebates and tax breaks in Colorado
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 $2,500 (depending on where you live) are available for solar installations on homes in Pitkin and Eagle counties, Eagle Valley, the Town of Vail, 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 $500 for the first 6 kW, and is stepped down for larger systems. Homeowners installing an average 6kW system can save $3,000 on their installation costs with this great rebate.
Tax exemptions for renewable energy equipment
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.
Other solar energy incentives in CO
Net metering in Colorado
When you put solar panels on your roof, you want to make sure you get credit for all of the power your system generates. Luckily, Colorado has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power. Xcel Energy offers the top utility net metering program in Colorado.
The federal solar tax credit
Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).