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Colorado Solar Incentives: Tax Credits & Rebates Guide 2023

Last updated 09/22/2023

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Key Points

  • Going solar in Colorado can help you save thousands on electricity bills.
  • Local and federal solar incentives can help Colorado residents cut the cost of solar installation.
  • The average price of a solar array in Colorado is $27,696 before using solar tax credits and incentives.

Ready to go solar? Call 877-209-9572 to be connected with a solar expert today!

Solar power FAQs

  • Solar systems are priced per watt, with an average of $4 in Colorado. On average, residential solar arrays in Colorado cost $27,696 for an average 6.8 kW system before using tax credits, rebates, and other incentives. Installation prices may vary as well, depending on the installer and location.

  • Solar panels can be a great investment in Colorado, depending on your location, the amount of sun your home receives, and your energy use habits. The state typically gets more than 300 sunny days annually, 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 pay off if you sell your home. 

  • How much you save depends on several factors. The size of your system affects how much energy you generate and store in solar batteries. Potential savings also depend on how much energy you use in your home. Homes with lower energy usage may have higher savings because they draw less power from the grid. Net metering programs can also allow you to sell electricity from your solar system back to the grid.

  • SaveOnEnergy can help you find trusted solar installers near you. Fill out the form on this page to start powering your home with solar power.

  • To connect your solar system to the grid in Colorado, you will need to go through the interconnection process. Your installer will work with your utility company to obtain the necessary permits to ensure that your solar system is solar grid-tied. While the Colorado legislature recently passed a law to streamline the solar permitting and inspection processes, it’s important to work with a professional solar installer on this critical final step.

  • Colorado offers various incentives and programs to encourage the installation of residential solar panels. One notable program is the Colorado Renewable Energy Standard, which requires utilities to source a certain percentage of their electricity from renewable energy sources, including solar power. This creates a demand for solar installations. Colorado also has a net metering program that allows homeowners with solar panels to receive credits for any surplus electricity they generate and send back to the grid. These credits can help offset their energy costs. In addition, there are federal tax credits available for Colorado residents installing solar.

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

written by
Saltanat Berdikeeva

Saltanat Berdikeeva

Saltanat Berdikeeva is a seasoned energy writer and analyst and a published author, who specializes in renewables, energy efficiency, and energy transition. Saltanat’s articles on energy issues and trends in Eurasia, the Middle East, and the U.S. featured in Energy Digital, Inside Arabia, European Energy Review, Environment Journal, National Geographic, Platts, Oil and Gas Journal, Jane’s, Insight Turkey, ISN, and local newspapers. Check out her podcast Reimagined Communities on energy transition in American communities.

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edited by
Hannah Hillson

Hannah Hillson

Hannah Hillson is an editor and wordsmith with a decade of experience in the home services and energy industries. Apart from editing and writing, Hannah enjoys learning about energy solutions, renewable energy, and the deregulated market. Find her work on and connect on LinkedIn.

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