As a resident of the Centennial State, you‘re likely aware of Colorado‘s wealth of sunshine. Some parts of the state average over 300 days of sun per year! What you may not know is that Colorado has a thriving solar energy market to take advantage of those rays.
This guide serves as your complete resource to answer key questions like:
- How much do solar panels cost in Colorado?
- What rebates or tax breaks are available to me?
- How many solar panels would my home need?
- How quickly would a system pay for itself through electricity bill savings?
We‘ll explore all facets of home solar for Coloradans based on up-to-date market data from installers, manufacturers, utilities, and state agencies. Our mission is to provide unbiased insights to inform your decision of whether to go solar.
Key stats on Colorado‘s solar landscape:
- Over 3 gigawatts of solar power now installed, enough for ~607K homes
- Solar panels have 59% market saturation in the state
- Average installation cost sits at $2.51/Watt, nearly 50% less than in 2013
- 309 days of sun per year across much of CO
Now, let‘s explore those crucial considerations in more detail…
Solar Panel Costs in Colorado
The average price per Watt that Coloradans pay for solar hovers right around the $2.50 mark. But costs can fluctuate across different factors:
Solar Panel Cost by System Size
| System Size | Average Cost |
|---|---|
| 2 kW | $5,500 |
| 4 kW | $9,300 |
| 6 kW | $14,700 |
| 8 kW | $17,500 |
| 10 kW | $21,600 |
Solar Panel Type
| Panel Type | Price | Efficiency |
|---|---|---|
| Monocrystalline | $2.87/Watt | 15-22% |
| Polycrystalline | $2.49/Watt | 13-16% |
Installation Costs
Regional installer data shows rates between $2.00 to $3.50 per Watt depending on company, system size, and equipment quality. Larger installers like Namaste Solar likely sit on the lower end while smaller operations charge more.
When accounting for the 30% Federal Tax Credit, current 2023 system costs drop to around $1.75 per Watt – an all-time low.
Based on your specific electricity usage and location, solar panels in Colorado can save homeowners over $15,000 over the system lifetime.
Incentives Bring System Costs Down Even Further
Colorado maintains a suite of policy incentives along with that key Federal Tax Credit to spur solar adoption:
State Tax Credits and Rebates
| Incentive | Overview |
|---|---|
| Property Tax Exemption | 100% exemption on solar property value increase |
| Sales Tax Exemption | 100% exemption on state sales tax |
| Xcel Energy Solar*Rewards Rebate | $500 per kW rebate for systems under 10 kW |
| United Power Rebate | $450 per kW |
In addition, most municipalities and utility providers administer net metering programs that exchange any excess solar electricity fed back to the grid for full retail bill credits.
For a 6 kW system costing $14,700 pre-incentive, state and utility rebates coupled with the Federal credit reduce out-of-pocket costs down to around $9,500 in most cases.
Right-Sizing Your Colorado Solar System
Producing the optimal solar array size for your home comes down to balancing household electricity usage with available sun resources.
The formula goes:
Annual kWh Usage / Peak Sun Hours = kW System Size
For example:
- 12,000 kWh Annual Usage
- 5.5 Average Peak Sun Hours
- 12,000 / 5.5 = 6.2 kW System
Parts of Colorado vary drastically in sun resources based on weather and geography. Here‘s a look at cities across the state to showcase solar panel output potential:
Solar Panel Production Potential by Location
| City | Peak Sun Hours | 5 kW System Output |
|---|---|---|
| Denver | 5.0 | 6,425 kWh |
| Aspen | 5.5 | 7,015 kWh |
| Durango | 6.5 | 8,345 kWh |
| Lamar | 6.0 | 7,665 kWh |
Positioning panels to maximize light exposure plays a major role as well. Rooftop arrays oriented to the south tend to collect the most energy.
Financial Return from Solar in Colorado
Since electricity rates only move in one direction (up!), while solar panel prices fall each year, adopting a solar energy system is a wise financial play for most Coloradoans.
The payback period marks the number of years into ownership where your cumulative electricity savings surpass the initial solar installation cost.
For a $14,700 system displacing 6,425 kWh annually from Denver utility bills, the math looks like:
- Annual Bill Savings: 6,425 kWh x $0.13/kWh = $834
- Payback Period: $14,700 Cost / $834 Savings per year = ~17 years
Given most solar equipment carries 20-25 year manufacturer warranties, you‘d expect at least 3-8 years of pure electricity savings after payback.
Over a 25-year lifespan, total utility bill savings range from $12,750 for a small 2 kW system to $42,500 for a robust 10 kW setup.
Environmentally-Friendly: 6 Pounds CO2 Saved Per kWh
Transitioning to home solar power directly reduces reliance on fossil fuel-generated electricity from the Colorado grid.
Each kWh of solar electricity offsets ~6 lbs of CO2 compared to traditional power plants. Over 25 years:
- 5 kW system producing 6,425 kWh annually avoids 38,550 lbs CO2 per year
- That‘s almost 1 million lbs lifetime carbon mitigation from one Colorado home!
Additionally, sourcing electricity from your own rooftop reduces grid transmission losses and strain on infrastructure during periods of peak demand. Solar supports grid stability and resilience from weather disruptions.
Steps to Go Solar as a Colorado Homeowner
Curious what the process looks like to adopt solar power? Here‘s an overview:
1. Site evaluation to review electricity bills, assess your roof, and gauge panel area needed.
2. Design finalization & proposal based on ideal panel tilt, expected production, and equipment requirements.
3. Contract, permits & installation – Sign agreement, file permits with county, and complete panel mounting & wiring.
4. Inspections before operation to verify proper code compliance and safety.
5. Interconnection application to authorization connection to electric grid.
6. System monitoring & maintenance to uphold warranties and output.
While each solar company may approach the workflow differently, you can expect a high degree of expertise along every step from leading Colorado installers like Namaste Solar, Microgrid Energy, Sunworks or newer entrants like Tesla.
Reputable solar providers aim to educate homeowners each step of the way to ensure you feel empowered in the decision-making.
Let the Sun Power Your Colorado Home
Thanks for taking the time to explore solar energy for Colorado homes. I hope mapping out key cost factors, incentives, production potential, and steps to adoption gives you confidence in evaluating home solar options.
With electricity rates guaranteed to rise while solar system costs continue falling ahead of eventual incentive phase-outs, now remains an opportune time to seize control over your home energy supply.
Please reach out with any additional questions. I‘m always happy to discuss specifics for your location and electricity needs to assess expected savings!
