How Many Solar Panels Do You Need?
How Many Solar Panels Do You Need? With
Guide to Colorado Solar Incentives (2024)
- November 6, 2023
Installing solar panels is an investment, but there are ways to make it more affordable. There are several solar incentives available that reduce the upfront cost of a home solar panel installation and help you break even on your investment faster.
Solar Power Pros is a local solar company that’s been installing residential solar panels in Colorado for over a decade. We can help you take advantage of Colorado solar panel incentives to maximize your savings.
Keep reading for an expert guide to Colorado solar incentives in 2024.
What Are the Solar Incentives in Colorado?
The best solar incentive available to Colorado residents is the federal solar tax credit, which reduces your federal income tax liability by 30% of your solar installation costs. There are also tax exemptions for solar panel installation in Colorado, and many local utilities offer solar rebates and incentives.
Incentive | Description |
Solar Tax Credit | A federal tax credit worth 30% of your solar panel installation costs with no maximum. |
Property Tax Exemption for Residential Renewable Energy Equipment | The value of a home solar system is excluded from property tax evaluations in CO. |
State Sales and Use Tax Exemption for Renewable Energy Equipment | Solar power systems are exempt from Colorado’s 2.9% sales tax. |
Utility Rebates & Incentives | Several utility companies offer cash rebates and incentives for solar panel installation. Availability and amount vary by utility. |
Net Metering | Earn utility credit for the excess solar electricity your panels generate. Credit amount varies by utility. |
Keep reading for more details about Colorado solar incentives in 2024. Contact Solar Power Pros today to find out how much you can save with solar incentives.
The Federal Solar Tax Credit in Colorado
The federal solar tax credit is the best solar incentive currently available. It was first introduced in 2005 and was recently expanded by the Inflation Reduction Act of 2022 (IRA). Because of the recent expansion, it’s sometimes referred to as the Inflation Reduction Act solar tax credit. Solar panels and solar battery storage are eligible for the solar tax credit.
How Does the Solar Tax Credit Work?
The solar tax credit reduces what you owe when you file your federal tax return by a total of 30% of your solar installation costs for the year you install your system. If your tax credit is worth more than you owe, you can roll the remaining amount over to the following year. To claim the tax credit in a given year, you must complete your installation and turn your solar panels on before the last day of the year.
Utility Rebates & Incentives for Colorado Solar Panel Installation
Several local utility companies offer cash rebates and incentives for solar panel installation. Specific rebate amounts and availability vary depending on what utility company you use and, in many cases, how big your solar panel system is.
Solar Power Pros is very familiar with the local utility rebate landscape in Colorado. We can tell you exactly what rebates and incentives are available in your area. Just give us a call to chat with one of our expert solar consultants. We offer no-pressure consultations and are happy to answer any questions you have about Colorado solar incentives.
Net Metering in Colorado
Net metering is a solar incentive system that allows you to trade electricity with your utility company. Under a net metering agreement, you send the excess electricity your solar panels produce to the electric grid. Your utility credits you at a predetermined amount per kWh, and you can use your credits to offset the cost of electricity you buy from the grid at night or anytime your solar panels are not producing enough electricity.
Net metering varies by utility. Both investor-owned utility companies in Colorado—Xcel Energy and Black Hills Energy—offer net metering to solar customers. Xcel Energy currently offers the best net metering program in Colorado.
Talk to the Pros About Colorado Solar Incentives
Solar Power Pros is the leading local solar installer in the Denver, CO area. We are here to help you find the best solar solutions for your home, starting with expert solar incentive and financing guidance. We offer free, no-pressure virtual consultations so you can get answers to all of your questions about solar panel installation in Colorado. We’ll tell you whether your house is a good fit for solar, how much you can expect to save, and what incentives you qualify for. Call us today!
