How Solar Panels Stabilize Energy Costs & Save You Money Long Term
How Solar Panels Stabilize Energy Costs & Save
Solar Tax Credits & Incentives
Are you ready to make the switch to solar? There are government solar incentives available to help you save on installation costs!
Solar panel and battery installation is an essential part of the clean energy transition. Widespread adoption of solar energy will create a more sustainable future and lead to more reliable electricity access for everyone. To encourage more homeowners and business owners to make the switch, state and federal governments offer incentives for solar panel installation.
As a local Colorado solar company, Solar Power Pros stays on top of the solar incentives available within our state. We can help you take advantage of incentives to make your solar panel installation as affordable as possible.
Solar Panel Tax Credits
Investment Tax Credit
Residential solar installations in Colorado are eligible for the investment tax credit (ITC), more commonly known as the federal solar tax credit. The solar energy tax credit reduces what you owe when you file your federal tax return by 30% of your solar installation costs. It covers solar panels, solar batteries, installation costs, permitting fees, and more.
The United States first enacted the federal tax credit for solar panels in 2006. It has been extended several times since, most recently by the Inflation Reduction Act of 2022. The new Inflation Reduction Act solar tax credit will be available at its 30% value for solar installations completed between 2022 and 2032. After that, it will be reduced and then phased out for good.
Don’t miss out on solar tax benefits—schedule your free solar assessment today!
Colorado Solar Tax Exemptions
There are two tax exemptions for solar energy systems in Colorado:
- Sales and Use Tax Exemption for Renewable Energy Equipment – There is no sales tax on solar energy equipment in Colorado.
- Property Tax Exemption for Residential Renewable Energy Equipment – Solar energy equipment is not included in property tax assessments in Colorado.
Solar Net Metering
It’s common for solar panels to generate more electricity than you need during peak production hours. You can store the excess energy in a solar battery for later use. In some states, including Colorado, you can also choose to sell your excess solar panel to your utility company in exchange for a credit to your account. Your credits can be used to pay for the electricity you buy from your utility when your solar panels are not producing enough electricity.
The Colorado Public Utilities Commission (CPUC) requires investor-owned utilities to offer net metering. Unfortunately, municipal utility companies and electric cooperatives are not required to offer net metering. Right now, Xcel Energy offers the best net metering program in Colorado. Solar Power Pros can help you learn more about the net metering options available to you during your free solar assessment.
Local & Utility Solar Incentives
Several municipalities and utility companies in Colorado offer their own solar incentive programs. Depending on where you live and what utility provider you use, you may be eligible for additional rebates and incentives. To learn more, reach out to our team today. We will let you know whether there are local or utility incentives available in your area and help you take advantage of them.
