Last fact-checked on April 14, 2023, by Catherine Lane

Colorado is one of the best places in the nation to install solar panels. A combination of high average sun exposure, expensive utility rates, the solar tax credit, and the state's net metering law means homeowners can get an excellent return by installing solar panels.
But, Colorado net metering rules have changed, causing solar panels to save less money than they have in the past. Don't worry, Coloradans can still see an excellent return on investment under the new rules, and battery storage is now a more economical choice.
$3.74 per watt
Average cost: 4.9kW solar power system
10 years 3 months
Average payback time
$17,765
Average lifetime savings
6
Average peak sunlight hours
$0.15 kWh
If you don't get solar
8,585kWh
Annual solar power production
*Price calculations have the 30% Federal Tax Credit applied.
This 4.9kW system would offset 100% of your energy usage if your typical monthly bill in Colorado is $102, however, your situation may vary so try our solar calculator to get a result tailored to you.
8 Solar companies in Colorado that provide pricing through the Solar-Estimate marketplace.
|
System Size |
Cash purchase
|
Financed purchase
|
|---|---|---|
|
3kW |
$8,274 |
$8,935 |
|
4kW |
$10,740 |
$11,599 |
|
5kW |
$13,060 |
$14,104 |
|
6kW |
$15,234 |
$16,452 |
|
7kW |
$17,262 |
$18,642 |
|
8kW |
$19,144 |
$20,675 |
|
9kW |
$20,879 |
$22,550 |
|
10kW |
$22,470 |
$24,267 |
$3.74 per watt
Cash purchased solar system After 30% solar tax credit
$3.83 per watt
Financed solar system After 30% solar tax credit
The advantages of installing solar panels in Colorado are that there are both state-based incentives and the federal tax credit to help reduce system costs. In addition, much like everything else in Colorado, power is expensive! High electric rates means you have the potential to save more money, making the overall return on investment for residential solar panels in the state much higher than other states in the nation.
The disadvantage of installing solar panels in Colorado is that there is less overall solar irradiation. This means a system in Colorado will produce less power than a system in sunnier states, like Arizona. However, the state and local incentives more than make up for this. Colorado homeowners should not pass up the opportunity to install solar while these amazing incentives are still in place.
Enter your details to calculate the potential costs and savings you can expect to see after installing solar panels on your home.
Solar panels produce different amounts of energy in different locations.
Solar panels installed on a south-facing 30-degree pitch roof will typically produce:
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
What size solar system do you need?
Answers the question of how many solar panels do I need?
How many square feet of roof space you need for solar panels
Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Colorado
The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
Likely cost based on an average of prices charged for solar systems of that size in the last year in Colorado ;
The likely payback period on your solar panels and your investment return.
Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Colorado solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Check out all of the ways energy providers of Colorado can help you be more energy-efficient and save money.
The following programs are available:
|
Incentive Name |
Eligibility |
Type |
|---|---|---|
|
Federal |
Personal tax credit |