Solar panels on a residential home in Colorado
Solar by StateColorado
300+ Sunny Days/Year

Solar Panels in Colorado

300+ Sunny Days a Year — Solar is a No-Brainer

$1,200/yr

Avg. Annual Savings

5.5 peak hrs/day

Peak Sun Hours

7–10 years

Payback Period

$13,000–$21,000

Avg. System Cost

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Overview

Is Solar Worth It in Colorado?

With more than 300 days of sunshine a year, Colorado also offers homeowners a prime way to go solar. Colorado's high altitude means more intense sunlight than many other states, and the combination of Xcel Energy rebates, net metering, and the federal tax credit makes solar a compelling investment for Front Range homeowners.

Colorado has been a leader in renewable energy policy, and the state continues to expand its solar incentive programs.

Benefits

Why Go Solar in Colorado

Reduce Your Electric Bill

Colorado homeowners save an average of $1,200/yr after going solar.

Federal 30% Tax Credit

Deduct 30% of your total system cost from your federal income taxes.

Increase Home Value

Solar panels increase your home's resale value — and are excluded from property tax in most states.

Energy Independence

Lock in your electricity rate and protect against rising utility costs for 25+ years.

Available Incentives

Colorado Solar Incentives & Tax Credits

Xcel Energy Solar*Rewards

State Program

Xcel Energy customers can earn ongoing payments for excess solar energy through the Solar*Rewards program, providing income in addition to bill savings.

Ongoing per-kWh payments

Net Metering

Net Metering

Colorado law requires utilities to offer net metering. Excess solar energy is credited at the retail rate.

Full retail rate credits

Property Tax Exemption

Tax Exemption

Colorado exempts the added value of residential solar installations from property tax assessments.

100% exemption on added value

Federal Investment Tax Credit (ITC)

Tax Credit

The federal 30% ITC applies to all Colorado homeowners who purchase their solar system.

30% of system cost

Common Questions

Colorado Solar FAQ

Absolutely — Colorado averages 5.5 peak sun hours per day and over 300 sunny days per year. The high altitude actually increases solar irradiance, making panels more productive than in many sunnier-sounding states.

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