Solar Tax Credits & Incentives

There’s never been a better time to go solar in Colorado. With solar incentives and tax credits, you can cut installation costs and maximize your long-term savings—all while supporting a cleaner, more resilient energy future. From local rebates and utility programs to the 30% commercial federal solar tax credit, there’s a full stack of incentives designed to make solar more accessible and affordable for all. Navigating them all can be tricky.

That’s where Solar Power Pros comes in. As a veteran-owned Colorado solar company, we don’t leave any Coloradan behind. Our team stays mission-ready—tracking the latest incentive updates, walking you through your options, and helping you capture every dollar you’re eligible for. Whether you’re a homeowner or business owner, we’ll help build a custom solar solution backed by top-tier equipment, $0 down financing options, and industry-best warranties.

Solar Panel Tax Credits

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. 

Commercial Federal Investment Tax Credit (ITC)

The Federal Investment Tax Credit (ITC) for business offers a 30% tax credit to companies and organizations that install qualifying solar energy systems. Qualified businesses can receive an additional 10% Domestic Content Adder and 10% Energy Community Adder, for a maximum 50% total possible tax credit savings.

 

With the passage of the latest federal budget in July 2025, new rules now set firm deadlines and sourcing restrictions.

  • To secure the tax credit, commercial projects must be safe harbored by July 4, 2026 and receive 4 full calendar years to be placed in service.
  • Projects that start after July 4, 2026 must be placed in service by December 31, 2027 to remain eligible, leaving a shorter timeline more vulnerable to interconnection and supply chain delays.
  • Starting in 2026 with increased restrictions in 2027, equipment used in your project must not be sourced from Foreign Entities of Concern (FEOC)—including China and other restricted countries.

Government and Nonprofit organizations can access the tax credit through Direct Pay (Elective Pay). Book an appointment with one of our pros to find out your incentive savings. 

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 energy to your utility company in exchange for a credit to your account. This is referred to as net metering. Your net metering 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.

Xcel Energy Solar Rewards Disproportionately Impacted Communities Program

This Xcel Energy program helps make solar energy more accessible and affordable for those who need it most. Disproportionately Impacted Communities (or DI-Communities) often bear a heavier environmental burden, disproportionately experiencing pollution and the impacts of climate change. By prioritizing these regions, the program aims to ensure that the benefits of clean energy are equitably distributed throughout the state.

 

The program offers generous solar rebates up to $7,000 and battery storage rebates up to $9,200. To be eligible, you must meet specific criteria. Find out if you qualify.

Xcel Energy Solar Rewards Colorado Program for DI-Communities | Solar Power Pros

Discover Your Solar Incentive Stack

How much can you save with solar? Our team of experts will evaluate your home or business and walk you through all available incentives you may be eligible to receive. Schedule your free, no-obligation solar assessment below and take the first step toward lower energy bills.

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Learn more about Colorado solar incentives! Call 303-797-6527 or contact us to schedule a free solar assessment.