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). By 2020, electricity providers must generate 30% of their electricity from renewable energy sources. This is why there are so many Colorado solar incentives and rebates for residential and commercial solar. Plus, the federal solar tax credit is still in place for a limited time!
We’ve gathered information on the solar incentive programs available in Colorado to help you navigate these opportunities and to help you get the best deal on your home solar panel system. Which Colorado solar incentive program are you eligible for?
Customers of City of Fort Collins Utilities can receive up to $1,500 for a residential solar system installation or $100,000 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). 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.
Customers of Colorado Springs Utilities can receive a rebate of $0.20 per watt that their new solar panels generate. A residential solar panel system that is sized at 5,000 watts (an average size for residential solar), for example, would qualify for a $1,000 rebate (5,000 AC watts x $0.2 per watt = $1,000). This rebate applies to both residential and commercial-scale systems. Depending on the installation, up to 40 percent of the total system cost would be covered by rebates and tax credits. Colorado Springs solar customers can also receive credit for the excess energy their systems produce through net metering.
The City of Boulder offers solar incentives for both homeowners and businesses. Those who install solar energy systems may be eligible for solar rebates on city taxes. The city also offers solar grants to residents based on income and to nonprofit organizations who install new solar systems. Grant applications are accepted every fall and spring.
Xcel Energy customers may be eligible to receive payments in exchange for Renewable Energy Credits (RECs), paid in cents per kilowatt hour (¢ per kWh). Note that not many of our customers enroll in this program, but our home solar advisors can help you determine if this solar incentive program is a good option for you.
You can apply for a cash rebate up to $3,000 for your home solar installation if you are a resident in Eagle Valley, Gunnison County, Lake County, Roaring Fork Valley, Summit County, Routt County, or Moffat County.
Residents who install renewable energy systems, including solar, are eligible for a rebate from Holy Cross Energy. They offer an incentive up to $8,100 for private solar systems and 40% of the installed cost (up to $1,500 per kW for the first 25 kW installed) for non-taxable entities that install solar.
And the BIG one: The Federal Solar Tax Credit
In addition to the local Colorado solar incentives, all homeowners can also take advantage of the federal tax credit for solar. This applies to all new solar installations and is available for a limited time. If you are thinking of going solar, don’t miss out! The credit is currently phasing out in stages until it fully expires for homeowners in 2022. (There will remain a 10% tax credit for commercial installations.)
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.