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 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 $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
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
Energy savings mortgage incentive for existing homes
For those of you who have recently purchased a new home, or are in the market, this is a great bonus for you: the State of Colorado will help pay your mortgage if you install energy efficiency upgrades and a renewable energy system within the first 120 days of buying your new home. Depending on how much you improve your house’s rating on the Home Energy Rating System Index, you could receive between $750 and $3,000 from this loan program.
Colorado community solar
If you don’t own your property or your home doesn’t have a roof suitable for solar, fear not. CO is one of the earliest proponents of community solar, which allows interested residents to subscribe to an off-site solar array, effectively offering you the benefits of solar without installing panels on your roof.
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 (ITC)
Don’t forget about your federal solar incentives! Legislators on Capitol Hill recently approved an extension of the solar Investment Tax Credit (ITC), which is one of the most significant PV subsidies out there. You can reduce the cost of your solar panel system by 30 percent thanks to this great tax credit. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit to have an economic impact.