Blog Updated: May 2024
Colorado homeowners and commercial property owners are in luck when they go solar because there are many solar incentives and rebates available, making solar panel systems an even better deal. Colorado consistently ranks in the top 10 for the most solar installed per capita, and the state has one of the nation’s strongest Renewable Energy Standards (RESs). This is why there are so many Colorado solar incentives and rebates for residential and commercial solar.
We’ve gathered information on the solar incentive programs available in Colorado to help you understand these opportunities. If you get a free quote from our non-commissioned team, your quote will include all available incentives based on your location and utility. We want to help you get the best deal on your home solar panel system. So, which Colorado solar incentive program are you eligible for?
The BIG one: The Federal Solar Tax Credit
In addition to the local Colorado solar incentives listed below, all homeowners can also take advantage of the federal tax credit for solar. Thanks to the Inflation Reduction Act, the federal solar tax credit is at 30% and will remain there until 2032.
Xcel Energy Solar Reward Programs
Xcel Energy customers receive net metering benefits for their system, but they may also be eligible to receive extra incentives through their various solar energy reward programs. Some program examples are:
- Solar*Rewards Community: You may be eligible to subscribe to a community solar garden at no cost. Check out this page to learn more and check eligibility requirements.
- Solar*Rewards Onsite Income Qualified and Disproportionately Impacted Community Programs (IQDIC): If you live in a Disproportionately Impacted Community and/or meet income qualifications, getting a home solar system can be affordable through this program. If you qualify, you're eligible for a $1/watt discount UP TO 7 kW AC. Check out this map to see if you live in a qualifying area. Keep in mind that you may be eligible under income qualifications even if you don't live in a qualifying area on the map. Check out this page to learn more.
- Solar*Rewards Onsite Commercial and Industrial Entities IQDIC: There are some eligibility requirements dependent on location of your commercial or industrial entity and who you serve, but you could also be eligible for a discount through Xcel on your commercial solar project. Check out this page to learn more.
Our home and commercial solar advisors can help you determine which program is a good option for you.
Denver's Rebates for Renewables
- Climate Action Rebate program: If you already have a heat pump or heat pump water heater installed in your home and you're ready for solar, you can work with a registered contractor to reserve a solar rebate through this program. You can receive a rebate of $1 per watt, up to $4,000 for your solar project. Additional funding is available if your household makes less than 80% area median income.
- Battery Storage: Battery storage is an important component of energy independence and having a home that's resilient to grid outages. The Climate Action Rebate will provide $500 if you're interested in installing a battery. You're eligible for an increased rebate of $2,750 through the same program if you already have a heat pump, a heat pump water heater, or a bidirectional EV charger installed on your home.
Now through July 31, 2024, Fort Collins is offering boosted incentives for residents! Customers of City of Fort Collins Utilities can receive up to $1,500 for a residential solar system installation and $3,000 for adding battery storage. There is a bonus $1,000 for solar and battery combined and a bonus of $500 for adding either solar or battery storage to an existing system. This totals up to $5,500 in city incentives!
The city also offers $50,000 for a commercial solar system installation. The rebate amount is calculated based on the amount of electricity the new system generates ($0.50 per watt). Any system must be owned by a Fort Collins Utilities electric customer and be larger than 500 watts.
Homeowners who go solar in Fort Collins can also receive credit for the extra electricity generated through net metering and Fort Collins Utilities’ new time of use rate.
Colorado Springs Utilities Renewable Energy Rebates
Customers of Colorado Springs Utilities can receive a rebate of $0.02 per watt that their new solar panels generate. Tax credits and rebates could cover up to 40% of the system costs. To be eligible for this rebate, the minimum size of the system is 500 watts AC (the maximum size is 120% of the customer usage and 15 kW AC for residential and 100 kW AC for business).
City of Boulder Solar Grant Programs
The City of Boulder offers solar incentives for both homeowners and businesses, including the following.
- Solar Grant Program: The city offers solar grants to residents based on income and to nonprofit organizations who install new rooftop solar systems. Grant applications are first come, first serve rolling acceptance.
- Solar Tax Rebates: Residents and businesses that install solar energy systems and pay city sales tax may be eligible for rebates on city taxes.
Energy Smart Solar Rebates
Energy Smart Colorado collaborated with Colorado communities to offer rebates for residential and commercial solar. Homeowners can receive up to $4,000 for their solar panel installation, depending on which county they live in. Businesses who install solar should connect with Energy Smart Colorado to learn more about rebates available in your community.
Electric Vehicle Tax Credits Through The State of Colorado
There are several federal rebates for those who buy electric vehicles and EV chargers. You can view their EV rebates here and EV charger rebates here. For Coloradans, there are state rebates for EV and charger purchases:
- Electric Vehicle Tax Credits: As a Colorado taxpayer, you're eligible for a $5,000 state tax credit when you purchase or lease a new EV with an MSRP up to $80,000. If your new EV is under $35,000 MSRP, you're eligible for an additional tax credit of $2,500.
Home Electrification Tax Credits
There are some limitations and eligibility requirements but you can get a tax credit through the federal government for upgrading your electrical panel.
- Electrical Service Upgrade Tax Credit: You can claim 30% of the project cost, up to $600, for any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders.
- Heat Pump Installations: Check out this page to see the numerous home electrification incentives including tax incentives and utility incentives that are available to you on things like heat pumps.
Have Questions about Colorado Solar Incentives?
Are you wondering how to get the best deal on your home solar panel system with Colorado solar incentives and rebates? Or perhaps you have questions about solar financing? Our non-commissioned solar advisors and utility coordinators are here to answer your questions and discuss your financing options. We take care of all the details for going solar, and our team can even help you navigate the applications for your solar incentives and rebates, so you get the best deal.
