As a Colorado resident, you stand to benefit enormously from installing solar panels on your property. With abundant sun, state policies that encourage renewable energy, and powerful financial incentives, going solar in CO can slash your electric bills for decades to come.
This comprehensive guide provides everything you need to evaluate whether solar is right for your home and maximize potential cost savings through available rebates, tax credits, and other solar incentives across Colorado.
The Booming Solar Market in Colorado
Before covering solar savings opportunities, let‘s look at a few stats that showcase the impressive growth of solar energy in our state:
- 1,700+ megawatts of solar power capacity installed as of 2023 – enough to power nearly 350,000 Colorado homes
- Over 350 solar companies operating in CO, employing over 7,000 workers
- 3rd nationwide for projected solar energy growth over the next 5 years
- Generated over $2.7 billion in solar investment and installation activity in 2022
Declining solar equipment prices combined with financial incentives make going solar extremely compelling. Once your solar photovoltaic (PV) system is installed, you can lock in electricity cost savings for 25+ years off free power from the sun.
And Colorado aims to further accelerate solar adoption through its renewable portfolio standard requiring 30% renewable electricity by 2030, including a 3% solar carve-out.
Your home can clearly benefit from this solar boom as well. Keep reading to discover all the ways to win savings!
Cash In on Federal and State Financial Incentives
From federal tax credits to Colorado rebates and performance payments, installing solar opens up significant financial incentives. Here‘s a breakdown of what‘s available:
Claim the 26% Federal Solar Tax Credit Before It‘s Gone
The Investment Tax Credit (ITC) offers a 26% credit for solar systems installed through the end of 2023. This amount will drop to 22% in 2024, so act fast to maximize savings!
You can claim a credit up to:
| System Size | Max. Credit in 2023 |
|---|---|
| 4 kW | $4,992 |
| 6 kW | $7,488 |
| 8 kW | $9,984 |
| 10 kW | $12,480 |
The ITC applies to all system equipment and installation costs. Just note that you must purchase panels outright to be eligible, not lease them.
Double Down on Savings with CO Rebates up to $1,800
Many utility providers offer rebates that reduce your upfront solar costs even further. For example:
- Fort Collins – Up to $1,500 rebate for residential solar
- Holy Cross Energy – $1,800 solar incentive available
Check EnergizeCO.com to find specific solar rebate offers in your utility territory. Funding is often limited so don‘t delay if a program is available!
Combined with the federal ITC, these rebates greatly accelerate solar payback and make it extremely affordable.
Get Paid from Your Utility for Excess Power
Thanks to net metering and payment programs through Xcel Energy and others, you can earn bill credits and cash payments for sending extra solar power back to the grid.
For a 6 kW system, that could mean over $8,400 additional savings over 25 years compared to offsetting your own usage only!
Purchase vs. Leasing: Buying Unlocks Maximum Savings
While some companies may push you towards leasing solar panels through a PPA agreement, purchasing your system is the best way to maximize lifetime savings in Colorado.
Leasing arrangements disqualify you from:
- Federal solar tax credits worth $7,488+
- State/local rebates that reduce upfront cost
- Performance payments and higher net metering compensation rates
We project a leased 6 kW solar system forfeits over $15,000 in combined savings and payments over 25 years compared to buying.
Check out the breakdown:
| System Ownership | 25 Year Savings |
|---|---|
| Purchase | $23,550 |
| Lease/PPA | $8,225 |
Purchasing also provides certainty over your long term electricity costs. With a solar lease, monthly payments could rise over time.
Time to Go Solar! How to Start Saving Now
Hopefully you‘re now convinced to invest in solar panels for your Colorado home. Here‘s a checklist to maximize savings from start to finish:
☑️ Research top local solar installers and compare quotes
☑️ Opt to purchase panels rather than leasing
☑️ Consult with installers on system sizing to fit your needs
☑️ Check all available federal, state and utility incentives
☑️ Apply for utility rebates – first come first served!
☑️ Install panels ASAP to claim the 26% federal tax credit
☑️ Sign up for net metering and payment programs through your utility
☑️ Sit back and enjoy decades of solar bill savings!
Following the guidance in this solar guide can help you save thousands of dollars through Colorado‘s robust incentives. With high-quality panels, you can expect at least 25 years of free power generation.
Ready to go solar and start saving? Reach out now for a free consultation!
