Colorado Solar Panels | 2022 Cost & Incentives | SaveOnEnergy

Colorado Solar Panels: Pricing and Incentives

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Colorado solar panels

Colorado is increasingly embracing solar energy. According to the Solar Energy Industries Association (SEIA), the state has 2,130 MW of solar installed, and is projected to grow by 3,819 MW over the next five years. The state even has a thriving Colorado solar energy industry that provides over 6,000 jobs.   

Solar energy can be a good way to reduce your electricity bill, help the planet, and might even make you money as you sell excess electricity back to the local utility company. Solar is an excellent option to generate and store electricity, thanks to Colorado’s sunny and warm climate. Below we’ll cover more in-depth the benefits of solar power, costs, and ways to help you afford a solar system.

Colorado solar panel cost 

The cost to install solar panels is an important point to consider. If you’re looking at the cost, the cost of solar panels is measured by dollars per what. According to the Center for Sustainable Energy, the average cost for a residential solar system is $3-5 per watt. While that doesn’t sound like much, that adds up to an average of $15,000-25,000 for a whole array before tax credits and rebates kick in. The average payback period for solar panels is six to nine years. You may be able to find federal tax credits, or even state and local incentives, often connected with your local utility.

Interested in learning more about solar in your area? Fill out the form below to get started.

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

Why choose Colorado solar energy?

Lower energy costs

One reason many people choose solar energy for their Colorado homes is because you can have lower energy costs. Energy costs can change abruptly and increase over time. So one good way to lower those energy costs is to generate your own by installing solar panels. Along the same financial lines, you can also improve your home’s value by installing solar panels, since many people on the market consider solar a benefit. The panels certainly have their upfront costs, but once you pay off the panels and start finding savings on your energy bill, many homeowners find they save over the long term.

Establish energy independence

Extreme weather events can pose a threat to the electrical grid. According to the U.S. Energy Information Administration, U.S. customers experienced nearly eight hours of interrupted power in 2020. If you have a battery for your solar array, you can retain power even if the grid is down. 

Go green

Another reason people are attracted to solar is because of the environmental benefits. Solar is a green energy source, so you reduce your carbon footprint by using solar. Some people even use solar to power an all-electric heating system, meaning that you’re no longer relying on natural gas to heat your home. If you’re concerned about the future of the environment, installing solar panels can be the most direct way to help the planet.   

Follow these steps to learn more about solar energy

  1. Call our solar energy experts 
  2. Find out if solar energy is right for you and discuss the options available at your home
  3. Call 877-209-9572 now to get a customized quote.

Colorado solar panel incentives or rebates

While the cost of solar panels can seem initially prohibitive, incentives and rebates can help offset some of those costs.  

Currently, there is a federal tax credit offered for installing home solar. Homeowners who install solar panels on their primary or secondary residence are eligible for a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. It is set to expire in 2024, so it’s important to invest in solar panels soon. This tax credit does not have maximum limits on it. 

At the state level, Colorado has incentives and rebates for installing residential solar panels. You can search a database through DSIRE that shows you which Colorado solar energy incentives and rebates are currently running in the state.  

Further, depending on your utility, you may be able to sell excess electricity generated by solar back to the utility company, a process called net metering. For instance, Xcel Energy has a net energy metering program, but requires that you apply to the program.

Should I buy or lease solar panels?

If you’re looking to primarily save money over time, you can save more by buying instead of leasing. 

According to the Office of Energy Efficiency & Renewable Energy, you can increase your home’s resale value by $15,000 if you install solar panels. Considering an average array costs $15,000-25,000, you could be offsetting that cost in home value alone. As such, even if you have to lease an array, it might be worth the investment. Leasing can open up access to solar for more families and homes. However, it’s important to know leasing may not lead to the same savings, or even some incentives or credits.     

Can’t afford Colorado solar energy or aren’t willing to pay that full price of a solar array upfront? Check into a shared solar program or community solar program in Colorado. With community solar, off-site solar panels provide solar to more than one home. Individuals then purchase or subscribe to part of the solar array. 

Colorado solar panel companies

As home solar has grown in popularity, the number of solar companies on the market has exploded. This is especially true in Colorado, where tax credits and incentives have attracted many solar panel companies. If you are interested in investing in Colorado solar panels, you can begin the research process with SaveOnEnergy’s resources and guides. From there, finding the best Colorado solar installer for your home should be much easier

The history of solar power in Colorado

Colorado currently ranks 13th in the nation for solar power. As a state, there is enough solar installed to power 335,951 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.

However, solar is still a growing energy option in Colorado, since only 4.18% percent of the state’s electricity comes from solar. 85,757 customers have elected to install solar, so it’s only becoming more popular. There are also currently more than 97 gigawatts of solar nationwide.

Important solar installation factors to consider

It’s important to note that there are factors that can affect your solar panels reliability. Aspects of your location can also affect the viability of Colorado solar energy.  

  • Your home’s roof is the number one point of consideration. If it’s an older roof, it might not be in a good enough condition to support a solar array. The angle of the roof must also get enough sunlight for the array to store power.  
  • Colorado is fairly sunny. However, you have to be in a non-shaded place to receive it. If you’re higher in the mountains, you might also have to contend with more snow, which creates the necessity of keeping the array free of heavy snow.
  • You’ll also need to check with the HOA or neighborhood rules to see if you can have a solar array on your roof. You might have to seek approval to install it.

Solar power FAQs

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

Solar is measured in price per watt, with averages being $3-5 per watt. On average, residential solar arrays cost $15,000-25,000. There is also the question of whether you plan to lease the solar array, which would increase the cost in the form of paying interest. Installation prices may vary as well, depending on the installer and location.

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

Investing now in solar panels could mean that you save on electricity rates in the long run, even if you have a no-deposit plan, prepaid plan or the best electric plan. How much you save can depend on where you’re located, how sunny it is, and what your energy use habits are.

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

How much you save can depend on many factors. The size of your array directly affects how much energy you can absorb and store. Your energy use habits could mean more savings if you have high energy use. If your local utility allows you to sell electricity back to them, you might actually end up making some money. You can also save more by investing in solar before the federal tax credit ends in 2024. 

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 completely renewable resource and it 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. You can also greatly reduce how much carbon your home is putting into the atmosphere.