Colorado

Colorado Solar Incentives and Rebates

Colorado is one of the states in the US that promotes the use of solar energy through various incentives and rebates. The state is known for its abundance of sunshine and high solar potential, making it an ideal location for solar power generation. Colorado residents and businesses can take advantage of various programs and initiatives that aim to promote the use of solar energy and make it more accessible to everyone.

The Federal Investment Tax Credit in Colorado

Perhaps the most significant incentives available to Colorado residents and businesses is the Federal Investment Tax Credit (ITC). Taxpayers can claim a credit of 30% of the cost of a solar power system on their federal income taxes and it applies to both residential and commercial solar systems.

State-level Tax Incentives in Colorado

According to the Colorado Department of Revenue, the state does not offer any cash-back or rebates for the purchase of solar energy systems. However, this does not mean that solar power is not accessible or affordable in the state. There are still several initiatives in place that make it easier for residents and businesses to go solar. 

State-Wide Solar Initiatives in Colorado

An excellent initiative in Colorado is the 2.9% state sales tax exemption for home solar systems. This means that when a resident or business purchases a solar power system, they do not have to pay sales tax on the purchase. This can significantly lower the overall cost of a solar power system and make it more accessible to everyone. Another initiative is the Cash incentives in the purchase of new rooftop solar panels. Cash incentives can range from $0.50 to $1.50 per watt, depending on the system size, so it can help greatly with the cost of the system.

State-Wide Tax Exemptions in Colorado

The State Government of Colorado has not implemented any state-wide tax exemptions for solar energy systems, but it’s not because they don’t support the idea of solar energy. It’s more likely because they believe that the federal tax credit and the state-wide initiatives that are already in place are enough to make solar power accessible and affordable to everyone.

Solar Easements in Colorado

In Colorado, solar easements are protected by state law. Colorado’s solar access laws, which date back to 1979, render void any covenants, restrictions, or conditions that prohibit “renewable energy generation devices” or “energy efficiency measures”. Renewable energy generation devices include solar energy devices and wind-electric generators that meet the state’s interconnection standards. Energy efficiency measures include awnings, attic fans, energy efficient lighting, and clotheslines, among other technologies. In short, this means that property owners in the state have the right to install solar power systems on their property and that they can’t be prevented from doing so by any covenants, restrictions, or conditions.

Net Metering in Colorado

In Colorado, solar power systems that are connected to the grid are eligible for net metering. Net metering is a program that allows residents and businesses to receive credit on their utility bills for any excess solar power that they generate. This means that if a solar power system generates more power than is needed, the excess power is sent back to the grid and the owner of the system receives credit for the power generated. This is beneficial for property owners who generate more power than they need, as it helps them save money on their utility bills.

Benefits of Going Solar in Colorado

As the solar panels generate power, property owners can reduce their reliance on utility-provided power, which can lead to significant savings on their utility bills. Additionally, solar power systems can increase property value, adding to the overall worth of a property. It also improves home resale value, as potential buyers are often attracted to the cost-saving benefits of solar power.

Furthermore, the state offers a sales tax exemption on the purchase of a solar power system, which can help lower the overall cost. It is also important to note that even though Colorado does not offer state level cashback or rebates for solar energy systems, the Federal Investment Tax Credit (ITC) still applies which is a credit of 30% of the cost of a solar power system.

Conclusion

Overall, Colorado is a great state for solar energy, with plenty of sunshine and high solar potential. While the state may not offer state-level incentives, the federal tax credit and the state-wide initiatives, such as the 2.9% state sales tax exemption, make solar power systems more accessible and affordable to residents and businesses. Additionally, the benefits of going solar such as reduced electricity bills, increased property value and improved home resale value make it a great investment for any property owner. With the protection of solar easements and net metering, it’s easy to see why going solar in Colorado is a wise choice.

FAQs

Colorado offers a variety of incentives for solar, including a renewable energy credit (REC) program, net metering, and solar property tax exemption. Find out more about solar incentives in your state at SolarEmpower.

Generally, the limit is based on the size of the roof and the amount of usable space available. It is recommended that you consult with a local solar professional for the most accurate recommendation for your specific situation. Check out our expert reviews of verified installers in your area.  

The cost of a solar installation in Colorado can vary greatly depending on the size of the system, the type of equipment used, and the labor costs associated with the installation. Generally, a typical home solar installation will cost between $10,000 and $20,000.

Yes, solar panels are eligible for a 30% federal tax credit in Colorado, as well as a variety of other state and local incentives.

Yes, solar panels are a great investment in Colorado. Find a trusted solar provider in your area.