Cost of solar in Denver, CO

Electricity Consumption in Denver

Electricity Consumption by Colorado residents averages 706 kWh per month. It ranks #15 in the nation for savings from installing solar panels on the home.

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Solar power in Denver, Colorado

As a resident of Denver you are probably buying your power from Xcel Energy.

Excel Energy offers 1 for 1 net metering as a key incentive to support its customers to install solar power on their homes.

What this means is that in periods (usually during the middle of the day) when your solar system is producing more power than your home is using, you are credited for the excess solar energy you feed back into the grid at the full retail rate of power.

Because solar systems generate most power during the middle of the day, and most households use most of their power in the evening, net metering is a key reason why installing solar panels on your home in Denver can have a short payback period and offer excellent long term returns.

Why net metering in Denver is better than in some other places?

If in any given month your solar system exports to the Excel grid more electricity than what your home drew from the grid Excel will pay you for this excess.

The excess is valued at the retail per kWh rate. You can elect to be paid out this value in cash or roll the value forward for use as a credit against possible future electricity bills. In many other jurisdictions you are not paid cash for your excess export if it is above your usage from the grid or are paid out at a lower avoided cost rate for solar export. 

Are there also upfront incentives to install solar panels on my home in Denver?

 

Xcel Energy also offer a REC (Renewable Energy Credit) program however, unless your system is over 25kW the credit is only $5 per MW of solar energy. Even a 10kW solar system, which is larger than the typical sized resdential solar system installed on a home in Denver, only makes about $60 a year from REC's, but hey it's better than nothing.

The major up front incentive to help you cover the cost of installing solar panels on your home is the 30% solar tax credit. Whilst we refer to this as an upfront tax credit you do not receive the cash benefit of this until you do your taxes for the year in which you install the solar system. This means receipt of the tax credit can be up to 18 months after you install your system depending on when you install it and when you do your taxes for that year. Claiming the full value of the 30% tax credit requires you to have a tax liability against which this credit can be claimed.

Even if you are not convinced about solar we recommend that at the very least you use the solar panel calculator to find out:

 

Estimate your solar savings

 

Solar power in Colorado

The average cost of installing residential solar panels in Denver, Colorado in 2018 is $3.56 per watt. The average system size in the US is 6 kilowatts, which means the average price of a solar system in Denver, CO is $17,800. (before claiming 30% tax credit and other rebates)

What does the cost of a real solar system look like?

Facts about installing a 3.58kW solar system in Denver, CO

This system would offset 100% of your energy usage if your typical monthly bill is $54, however your situation may vary so try our solar calculator to get a result tailored to you.

$9,573

Net cost of system
Cash - after 30% solar tax credit

11 Years 6 Months

Average payback time

5,258
kWh

Annual power production


/kWh

levilized cost of solar energy

22¢
/kWh

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

Cash flow graph based on cash purchase of this 3.58kW system

Life-time savings on this system over the next 25 years

$14,968

(Prices shown after repayments of capital)

 


 

Solar companies in Denver, CO that provide pricing through the Solar-Estimate marketplace

63

 


Solar calculator and quote comparison tool

Average total cost of solar panel installation in Colorado

System Size Cash purchase
After 30% solar tax credit
Financed purchase
After 30% solar tax credit
3kw $8,148 $8,800
4kw $10,556 $11,400
5kw $12,810 $13,835
6kw $14,952 $16,148
7kw $16,905 $18,257
8kw $18,704 $20,200
9kw $20,349 $21,977
10kw $21,840 $23,587

 

Design your own solar panel system for your home

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:
Incentive Name Eligibility Type
Residential Renewable Energy Tax Credit Federal Personal Tax Credit
Find your local rebates and incentives

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