Colorado Solar Panels | 2022 Cost & Incentives | SaveOnEnergy

Colorado Solar Panels: Pricing and Incentives

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Colorado solar panels

Solar power in Colorado is on the rise. According to the Solar Energy Industries Association (SEIA), Colorado has 2,183 megawatts (MW) of solar power installed, which is enough to power 452,783 homes. The SEIA projects solar power in Colorado will grow by 3,712 MW in the next 5 years.

Colorado’s sunny and warm climate makes solar panels a good investment. Investing in solar power can reduce your electricity bill, lower your environmental footprint, and increase your energy independence in Colorado. Below we’ll cover the benefits of solar power, how much it costs, and whether solar panels are right for your Colorado home.

Colorado solar panel cost 

The cost of solar panels in Colorado is important to consider before you take the next step in the buying process. According to Lawrence Berkeley National Laboratory’s Tracking the Sun report, in Colorado solar panel system price per watt ranges between $3.00 and $4.62 per watt, with system sizes ranging from 4.1-kW to 9.75-kW, resulting in a system cost range between $12,286 and $45,013

Price Per Watt System Size (kW) Cost
High $4.76 7.9 kW $37,501
Median $4.22 5.4 kW $22,972
Low $3.20 3.7kW $11,717

Get an exact quote from our solar advisors

The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home — all for free. If you’re interested in solar, answer a few questions to get an exact price quote from our solar advisors.

1. Complete the form below
2. Schedule an appointment with a solar advisor
3. Get an exact price quote for solar panels for your home

Not eligible for rooftop? Check your availability with community solar.

Colorado solar panel incentives or rebates

The cost of solar panels has dropped significantly in the last decade, but it is still a large investment. Solar incentives, tax credits, and rebates can help offset some of those costs and make solar panels more accessible.

Currently, the Residential Clean Energy Credit (formerly called the ITC) which was recently implemented as part of the Inflation Reduction Act offers a 30% tax credit to consumers who install solar panels on their homes through 2032. It can also be applied to systems previously purchased in the beginning of 2022. It’s important to invest in solar panels within the next 10 years to take full advantage of the full credit; the credit will decrease to 26% in 2033 and 22% in 2034 before expiring in 2035.

At the state level, Colorado residents have several state solar incentives and rebates available for installing solar panels. Here are just a few of the Colorado solar incentives available

Property Tax Exemption for Residential Renewable Energy Equipment Consumers who purchase solar systems for their homes are exempt from paying increased property taxes that result from the solar installation.
San Miguel Power Association Rebate Program Customers of this utility will receive a rebate when they install solar systems on their property.
City of Boulder - Solar Sales and Use Tax Rebate Residents in Boulder will receive a refund of about 15% of the sales and use tax that they pay once they’ve installed a solar system.
Net Metering Programs Depending on the location, residents in Colorado may be able to sell excess electricity generated by their solar system back to the power grid through net metering programs.
Residential Clean Energy Credit This federal incentive offers a 30% tax credit to consumers who buy a solar system for their residence between 2022 and 2032.

Why choose Colorado solar energy?

Lower energy costs

One reason many people choose solar energy for their Colorado homes is to have lower energy costs. The price of electricity from the power grid can change abruptly and increase over time. One way to lower those energy costs is to generate your own electricity with solar panels. You can also improve your home’s value by installing solar panels. Solar panels are a big investment, but after those initial costs many homeowners find long-term savings in energy bills.

Establish energy independence

Extreme weather events can pose a threat to the electrical grid and cause a spike in electricity rates. By powering your home with solar energy, you can take a step towards energy independence. When electricity rates spike, you will have extra protection because solar panels generate electricity for your home.

Go green

Another benefit to solar is the environmental interest. Solar is a green energy source, meaning it does not emit carbon dioxide into the atmosphere. By powering your home with solar energy, you reduce your carbon footprint. If you’re concerned about the future of the environment, installing solar panels can be a direct way to help the planet by investing in green energy.

Should I buy or lease solar panels?

Solar leases are an option that can help mitigate the upfront cost of solar panels, but most consumers will save more over time by buying and owning the solar system.

According to the Office of Energy Efficiency & Renewable Energy, you can increase your home’s resale value by $15,000 if you own solar panels. Considering an average solar system costs $15,000-25,000, you could offset that cost by the increase in home value. 

Leasing can open up access to solar for more families and homes. However, with a solar lease or a solar power purchase agreement (PPA), you will not own the system. Instead, you will make a monthly leasing payment to the solar manufacturing company. Under a solar lease or PPA, you will not experience an increase in your home’s value and will not be eligible for some solar incentives or tax credits (including the federal tax credit).    

Another option for consumers who want to avoid the upfront cost of solar system is community solar programs in Colorado. With community solar, off-site solar panels provide solar to more than one home. Individuals then subscribe to community solar projects and have solar energy power their home.

Colorado solar panel companies

As home solar has grown in popularity, the number of solar companies on the market has increased. This is especially true in Colorado, where tax credits and incentives have attracted 330 solar panel companies. If you are interested in investing in Colorado solar panels, you can begin the research process here. SaveOnEnergy partners with solar installers and community solar projects to provide options for Colorado residents looking to go solar.

Want to learn more about solar energy

Here at SaveOnEnergy, we’re your guide to everything solar energy, from checking your availability and discussing your home’s needs to getting you customized options to go solar with ease. Want to talk with a human? Call our dedicated solar advisors to discuss your solar energy options. Give us a call at 877-209-9572.

The history of solar power in Colorado

Colorado currently ranks 12th in the nation for solar power generation. As a state, there is enough solar installed to power 452,783 homes. Two of the largest solar projects, Comanche Solar and Hooper Solar Project, can generate 120 megawatts and 50 megawatts respectively, which is enough to power around 35,000 homes between the two of them.

Solar is a growing energy option in Colorado, with 5.7% of the state’s electricity coming from installed solar systems. There are more than 93,000 solar installations in Colorado and the solar industry has provided 6,771 jobs.

Important solar installation factors to consider

It’s important to note that there are some factors that can affect how much electricity your solar panels will generate. Here are three important considerations to keep in mind when thinking about investing in solar panels.

  • Your home’s roof is the first point of consideration. If you have an older roof, it might not be in a good enough condition to support a solar system. If this is the case, you may need to perform maintenance or replace your roof before installing solar panels. According to the U.S. Department of Energy, panels will be most efficient on south-facing roofs with a slope of between 15 and 40 degrees.
  • Solar panels are most efficient in sunny areas. Colorado receives more than 300 sunny days each year. While solar panels can still generate electricity in indirect sunlight, they will be most efficient when placed on a roof that receives consistent, direct sunlight.
  • You’ll also need to check with the HOA or neighborhood rules to see if you can have a solar array on your roof. If you live in an area with an HOA, you might have to seek approval before you install the system.

Solar power FAQs

How much would solar cost in Colorado? Expand / Collapse Toggle

Solar systems are measured in price per watt, with an average of $3.82. On average, residential solar arrays cost $24,742 before factoring in tax credits and incentives. Installation prices may vary as well, depending on the installer and location.

Is solar power a good investment in Colorado? Expand / Collapse Toggle

Depending on where you’re located, the amount of sun you normally receive, and your energy consumption levels, solar panels can be a great investment in Colorado. The state normally experiences over 300 sunny days every year, giving solar panels in Colorado ample time to run efficiently. A working solar system can also increase your home’s value, meaning the investment could really pay off if you ever choose to sell your home. 

How much could you save by investing in solar? Expand / Collapse Toggle

How much you save depends on many factors. The size of your system affects how much energy you generate and store in solar batteries. Potential savings are also influenced by how much energy you normally use in your home. Lower usage homes may have higher savings because they draw less power from the grid. Net metering programs can also allow you to sell electricity generated from your solar system back to the grid.

Where can I find a good solar panel installer in Colorado? Expand / Collapse Toggle

SaveOnEnergy can help you find trusted solar installers near you. Fill out the form above to start the process of powering your home with solar power.

How does solar power help the environment? Expand / Collapse Toggle

Solar power is a renewable resource that doesn’t emit carbon dioxide or other forms of air pollution. By installing a solar panel array on your home, you can drastically lower your home’s carbon footprint.