Colorado ranks #15 in America for savings from installing solar panels on your home

Solar power in Colorado

Colorado has had a good overall package of solar incentives for some years now. Not much has changed lately, except perhaps the targets set for renewable energy are getting closer to being met.

While they have a good RPS (Renewables Portfolio Standard) of 30% by 2020 the Xcel solar carve out program is limited in its yearly availability.

You need to apply to be in this program prior to the construction of any new PV Solar Power System.

Conditions apply, your local Solar Pro's know what's going on.

The 30% federal tax credit has been extended and is a significant incentive for many people to go down the solar path. Combine that with Net Metering and you have a good foundation to incentivise people to get solar power.

You should be able to buy good quality solar power systems from reputable installers in the range of $3.20 to $3.50 per watt, before incentives and fully installed.

At this sort of price level you are talking about a payback period of 10 years or less and an internal rate of return on investment of over 10%.


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Solar power in Colorado

Colorado solar power facts


Average cost of a 5kw solar power system in 2019
Price shown before incentives

9 Years 10 Months

Average payback time


Average lifetime savings
Price shown after repayments of capital


levelized cost of solar energy


If you don't get solar
The forecast average utility price over the next 25 years


Annual power production

Cash flow graph based on cash purchase of a 10.88kW system

This 10.88kW system would offset 100% of your energy usage if your typical monthly bill in Colorado is $164, however your situation may vary so try our solar calculator to get a result tailored to you.

Solar companies in Colorado that provide pricing through the Solar-Estimate marketplace


Best solar offers currently available in your city

Solar calculator and quote comparison tool

Compare solar quotes from the top solar companies in Colorado

How much do solar panels cost in Colorado

$3.66 per watt

Cash purchased solar system
Before 30% solar tax credit

$4.08 per watt

Financed solar system
Before 30% solar tax credit

16.9¢ cents/kWh

Av. 15 year term, 2.5% price escalator

What are the pros and cons of buying solar panels for your home in Colorado

The advantages of installing solar panels in Colorado is there is both state based incentives and the federal tax credit.

In addition CO also has above average power prices meaning overall the return on investment for an installation of residential solar panels comes in at around 9 years, this will vary from person to person somewhat.

The disadvantage of installing solar panels for your home in Colorado is that the available incenives are dwindling as Colorado gets closer to it's 30% Renebable Energy Target. If you own a home in Colorado you will be kicking yourself in a few years if you didn't install solar panels while these great incentives are still around.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

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Best brands of solar panels

To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.

However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so whilst solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.

For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.


Unlock live pricing on the best solar panel brands!


How much electricity will solar panels produce in Colorado

Solar panels produce different amounts of energy in different locations.

Around the Denver area solar panels installed on a south facing 27 degree pitch roof will typically produce:

1,150kWh 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 zipcode below.


See how much electricty your solar panels could produce

I want to buy a solar panel kit and install it myself

What rebates, solar tax credits and other solar incentives are available in Colorado

The solar carve out and Colorado SREC's

Colorado has a Renewable Energy target that is referred to as the Renewable Energy Standard has mandated that utilities operating in the state are to source a certain percentage of their electricity from renewable sources.

Colorado have been doing this well for some time now. Having adopted a very ambitious Renewable Energy Target of 30% by 2020.

This program run by Xcel has proven very popular over the last few years, problem with that is there are only a limited number of places available each year on this program.

It works out that there is a value placed on every Kilowatt Hour (kWh), about $ 0.02 still it's better than nothin, more info in the link or talk to a local solar pro.

Use the solar calculator or the compare solar quotes tool to see the current market value of Colorado's REC's system.



Net Metering in Colorado

Many people don't understand the importance of net metering policy to the residential solar industry. Solar by its nature generates most power during the middle of the day when most people are at work or school and little power is being used in the home.

Net metering means that for every unit of surplus solar generation (kWh) during the day you effectively get a credit for a kilowatt hour (kWh) of power purchased from the grid at another time.

This gives you as an owner of a residential solar system the full retail value of every kWh (kilowatt hour) of power your solar system generates.

Colorado's net metering system allows a carryover of any unused solar credits.

So if you have generated surplus kWh (kilowatt hours) they will turn into $$ at the end of each 12 monthly cycle.

This is a great incentive, may it last an eternity.

If you don't think net metering will last an eternity, better contact a local solar pro.



Colorado Interconnection guidelines

Connecting solar to the various different utilities in Colorado has recently become easier with the release of standard state wide interconnection guidelines that all utilities must follow.

Basically folk's any residential solar system up to 10 kW in size has a standard simplified set of interconnection rules that must be followed.

You can have a larger system but a non standard interconnection agreement may be required.



Colorado Sales Tax Exemption

There is no Sales Tax on Solar PV systems in Colorado, nice one Colorado.

Colorado Solar Calculator

Regardless of what you want to know about the economics of installing solar panels for your home or business in Colorado we have a solar calculator that can show you exactly the information your require.


You can either use our full monty solar calculator that shows you everything you could possibly want to know or you can use one of our range of smaller calculators for specific solar calculations that focus on providing you only with the specific information you require.



What you can find out about installing solar panels in Colorado using our full monty solar calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:

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 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.


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Solar calculator

Going solar in Colorado

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:
Find your local rebates and incentives

Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.