Solar Panels in Colorado | 2021 Cost and Incentives | SaveOnEnergy®

Colorado Solar Panels: Pricing and Incentives

Colorado solar panels

It’s not surprising that Colorado is one of the top states in the country for solar power since the state is known for its scenic natural beauty and environmentally conscious population. The Centennial State has invested more than $4 billion into solar projects, with nearly 4 percent of the state’s electricity coming from solar panels in Colorado.

Home solar is a good investment in many places, but it’s particularly attractive in Colorado. Not only does the state get more than 300 days of sunshine per year, but there are also several Colorado solar incentives (including rebates and tax credits) to help you cover the costs.

Keep reading for everything you’ll need to know about solar panels in Colorado, including the potential costs, benefits, and financing options.

Colorado solar panel cost

The cost of solar panels is measured in dollars per watt, and the average price for a residential system is $3 to $5 per watt. Based on those figures, a typical residential solar system ranges from $15,000 to $25,000 (before you factor in any rebates or tax credits).

It’s important to mention that many factors influence the cost of a home solar system, such as size, configuration, labor costs, and required permits. 

If you choose to buy your solar panels (rather than leasing them), you can expect the system to pay for itself within six to nine years. There are many other benefits to purchasing a residential solar system, including the three listed below.

Why choose Colorado solar power?

Lower energy costs

With a home solar system, you’ll be able to generate your own energy from the sun and won’t have to rely on local electric companies for power. It’s a fantastic way to reduce your monthly energy costs through the natural power of the sun.

Similarly, adding solar panels can boost your home’s resale value if you decide to move. According to the U.S. Department of Energy, a solar system can add $15,000 to the value of your property. This means a home solar system could pay for itself if you decide to sell your home.

Establish energy independence

In addition to fewer energy costs, another benefit of a residential solar system is that it allows you to move off the public power grid and establish energy independence. As a result, you’re less likely to be impacted by power outages. Plus, you won’t need to worry about your electricity rates rising when demand is high.

Go green

For households looking to reduce their carbon footprint, solar panels are an excellent option. Since solar energy doesn’t emit carbon dioxide, solar panels are an excellent way to reduce your environmental impact. By going solar, you’ll lower your household carbon emissions and help fight against climate change.

Colorado solar panel incentives or rebates

If you’d like to use solar power at home but you’re concerned about the costs, make sure to research the incentives and rebates available in your area. These types of programs can help lower the upfront costs of a solar panel investment, making solar more accessible for everyone.

First, you’ll want to look into the 22 percent federal tax credit available for homeowners across the U.S. To qualify, you’ll need to purchase and install a solar system for your primary or secondary residence at some point in 2021. This tax credit was recently renewed by Congress, but could expire in the coming years. So, it’s wise to make your solar panel purchase sooner rather than later to ensure that you get your money back.

There are also several Colorado solar incentives available. For example, you won’t need to pay any sales tax on your residential solar system, and you won’t need to pay higher property taxes if your home increases in value due to your solar investment. Plus, some local utility companies in Colorado offer cash rebates when you install a solar system.

Finally, Colorado also offers a net metering program, where homeowners can sell their surplus solar power back to the grid. It’s a great perk to help you get the most out of your solar investment and lower your total energy costs over time.

Should I buy or lease my solar panels?

As we’ve mentioned, you have the choice between buying and leasing your solar panels. Each side has pros and cons, which we’ll cover below. However, the simple truth is that you’ll save more money over time if you purchase your system.

First, let’s explain why you should consider buying your solar panels. In order to qualify for Colorado solar incentives, you’ll need to purchase your system (either upfront or with a financing plan). Similarly, you’ll have to own your panels for them to increase the resale value of your property.

Alternatively, if you can’t afford to buy your solar panels in Colorado, you can lease them. You won’t receive the financial benefits of ownership, but leasing can make the cost of solar panels in Colorado more affordable. You’ll still get the main advantages of solar, including energy independence and a reduced carbon footprint. But you will have to pay a monthly charge to the solar panel company.

Some communities in Colorado also have shared solar programs, which are great for renters or people who can’t add solar panels to their roofs. With these types of initiatives, residents can enjoy the perks of solar without committing to all of the installation or upkeep of panels.

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 ranks 14th in the nation when it comes to the amount of solar electric capacity installed. Overall, solar is popular with residents of the Centennial State, thanks to the tax benefits and rebates offered by the state government and local utility companies.

There are dozens of solar farms in Colorado, with more being built each year. Some of the largest Colorado solar farms include the Comanche Solar Project (120 MW) and the Palmer Solar Project (60 MW). As solar technology continues to develop across the country, Colorado solar farms may expand further.

Important solar installation factors to consider

When you’re considering solar panels in Colorado, you’ll want to understand how effective a solar system might be at your home. Here’s a quick look at the most critical factors to evaluate.

  • The condition of your roof. To get the most value out of your solar panels, your roof should be relatively new (or not in need of immediate replacement), south-facing, and positioned at a 15-40 degree angle. 
  • How much sunshine you receive. Solar panels are meant to absorb sunlight, which is why they work best in sunny climates. Fortunately, Colorado enjoys 300+ days of sunshine per year, so solar systems are well-suited there.
  • Any neighborhood/HOA regulations. In some areas, you’ll need to check with your local homeowners’ association to make any modifications to your home. Make sure to complete this step if it applies to you.

Solar power FAQs

How much would solar cost in Colorado?

It depends on several factors, including local permit costs and the size of your system. However, a typical residential solar system costs between $15,000 and $25,000.

Is solar power a good investment in Colorado?

In many areas, investing in solar panels is an excellent way to save on your energy costs. With that said, solar represents the best investment in places that receive lots of sunshine — and Colorado is one of those places. Check out the previous section to learn about all of the factors that can impact the effectiveness of solar panels at your home. 

How much could I save by investing in solar?

Again, it varies based on the specifics of your home and your current electricity rates. However, it’s common for homeowners to experience impressive energy savings by switching to solar. Some homeowners are able to cut their electric bills in half by using solar energy.

Where can I find a good solar panel installer in Colorado?

There are many solar panel installers in Colorado that can offer top-tier services. Before choosing an installer for your home, be sure to do your research, search for company reviews, and ask for referrals in your area. SaveOnEnergy is here with guides and resources to make finding the best solar panel installer in Colorado easier for you.

How does solar power help the environment?

Traditional energy sources emit carbon dioxide, which contributes to pollution and climate change. Not only does solar power not emit carbon dioxide, but it’s also renewable, so it can be continually generated without running out — which is good for the environment and humankind.

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Updated: 07/07/2021