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Colorado Solar Rebates and Other Incentives
In addition to a 30-percent renewable energy tax credit available from the federal government, Colorado homeowners can take advantage of a number of solar incentives available from their state (and in some cases local) government. As you'll see below, many of the Colorado solar rebates and financial incentives are made available through electricity utilities, like Xcel Energy and Black Hills Energy. The programs outlined below can significantly reduce total installed costs of solar photovoltaic (PV) panels or a solar water heating system.
When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your home energy needs, we'll work with our solar panel installation partners serving Colorado to get you a free site visit and quote. We're here to get you quality service and a great price on your solar energy system. So what are you waiting for? Be the next person to get solar in Colorado!
Are you a Colorado business owner? Check out our Colorado commercial solar energy incentive page.
To meet state-mandated renewable energy requirements, Colorado's investor-owned utilities (IOUs) must figure out a way to boost production of renewable power. One of the ways to do so is by offering solar rebates to residents (and businesses) who install solar energy systems. Colorado's two big IOUs -- Xcel Energy and Black Hill Energy -- offer the following programs:
Residential solar energy systems ranging from 0.5 kW to 500 kW DC can receive a solar rebate of $2.00/watt DC, plus an renewable energy credit (REC) payment of $.45/watt DC
PV systems up to 10 kW in size are eligible for a rebate of $2.00/watt DC, plus an REC payment of $0.50/watt DC.
PV systems from 10kW to 100 kW in size may receive a rebate of $2.00/watt DC, plus an REC payment of $50 per MWh produced over the course of the year. REC payments are made annually and are subject to adjustment.
A few other local utilities offer helpful PV rebate programs, including Colorado Springs Utilities, Holy Cross Energy, La Plata Electric Association, Poudre Valley REA, and Southeast Colorado Electric Association. Check out Colorado's page in the DSIRE database for more details.
Non-Investor-Owned Utility Rebate Programs
PV: Up to $1.50/W, but the rebate may be less if other local incentives are available.
Solar Hot Water: Up to $3,000, but the rebate may be less if other local incentives are available.
Depending on local availability, residential solar PV systems may qualify for a rebate worth up to $9,000 -- $4,500 provided by GEO, $4,500 provided by the local partner utility (systems installed by small businesses may receive $15,000)
Solar hot water (SHW) systems may receive up to $3,000 ($1,500 from GEO, $1,500 from local partner organization)
To see if rebates are available in your area, check out this list of local partner organizations, made available by COSEIA.
Miscellaneous/Local Solar Energy Incentives
The programs listed above can significantly reduce the cost of a solar energy system. In addition, there are a number of other small, yet helpful, incentives.
Local Property Tax Exemption for Renewable Energy Systems: In April 2007, Colorado authorized counties and municipalities to grant property tax exemptions to residents who install renewable-energy systems. While the details vary from municipality to municipality, the program is designed to enable property owners to install solar and other energy-efficient technologies without increasing their tax liability. To find your municipality online, click here for more information.
Sales and Use Tax Exemption for Renewable Energy Equipment Colorado provides a 100% exemption from sales tax for all renewable energy equipment.
PV systems earn a solar rebate of $2.00 per W; adjusted based on expected performance. The maximum incentive is $6,000.
Solar hot water systems earn $66.54 per MMBtu/yr up to a maximum incentive of $1000.
Colorado Residential Solar Incentives Page 2