Maximize your savings: Colorado solar incentives, rebates, and tax exemptions

With its abundance of sunlight and the state's commitment to renewable energy, Colorado has become a leader in the adoption of solar energy. As more residents turn to solar power, understanding state incentives, rebates, and tax exemptions available in Colorado is critical. These programs can significantly lower the cost of solar panel installations and increase long-term savings.

Net metering in Colorado

Colorado's net metering policy is among the best in the country. Net metering can help you:

• Lower energy bills by earning credits for excess energy production
• Reduce your payback period and maximize your solar investment over time

How net metering works

Your utility tracks how much energy your solar system produces and how much electricity you use, and provides bill credits at the full retail rate for the surplus power you send back to the grid. You can either receive a check or roll over the credit to reduce future energy bills, maximizing savings from your solar system and shortening system payback time.

How to enroll in net metering in Colorado

To enroll in net metering in Colorado, you need to meet your utility provider's interconnection requirements, which typically include using a solar system with a smart inverter certified under IEEE 1547 and UL 1741 standards—like our powerful Enphase microinverters. Professional solar installation is recommended, as DIY systems aren’t eligible for net metering.

Programs like Xcel Energy's Solar Rewards and Black Hills Energy's Solar Program are among the largest in the state, offering robust net metering options for qualified solar systems.

Colorado Residential Energy Upgrade (RENU) Loan

The Residential Energy Upgrade (RENU) Loan program in Colorado provides low-interest loans for solar projects. These loans help residents cover the cost of solar panel installations and other home energy upgrades.

The RENU Loan program offers solar financing at competitive rates, without requiring collateral or charging hidden fees. If you own your home and don't share a heating or cooling system with another home, you can qualify for a loan of up to $75,000, with a repayment period of up to 20 years. The interest rate will depend on your credit score and the credit union you work with.

There are no upfront costs, and the loan comes with a fixed monthly payment and no prepayment penalty. This program is supported by the Colorado Clean Energy Fund, a not-for-profit organization with ties to the Colorado state government.

State and local solar incentives and rebates in Colorado

Colorado offers several incentives and rebate programs at the state and local levels. These programs are designed to make solar energy more accessible and affordable for homeowners.

Local incentives and rebates

• Black Hills Energy: The Black Hills Energy Solar Program offers a rebate of $1 per watt for solar systems ranging from 0.5 kW to 25 kW, as well as a 3.8-cent per kWh incentive, for those who qualify based on income. Additionally, all customers can receive a $100 per kW rebate for paired storage systems. The total rebate is capped at $1,000 per customer. In return, Black Hills claims the system's Renewable Energy Credits (RECs). This incentive helps lower the overall cost of installing solar panels and storage systems.

• Holy Cross Energy (HCE) Program: Customers can earn an upfront incentive of $250 per kW for systems up to 6 kW and $100 per kW for systems between 6-25 kW. HCE also offers incentives for energy storage systems that meet HCE program requirements. Incentives are limited to available funds on a first come, first-served basis. These can be in addition to the incentives for renewable systems.

  0-25 kWh	$500/kWh	Incentive for energy storage system with DFT*
  0-25 kWh	$250/kWh	Incentive for energy storage system without DFT
  *Distribution Flexibility Program – Optional Tariff (DFT)

• Xcel Energy’s Solar*Rewards: Income-qualified residents and those in Disproportionately Impacted (DI) communities may receive $1,000 per kW for systems up to 10 kW. Xcel claims the RECs for 20 years, and payments are made within 60 days of permission to operate (PTO)
• High Country Conservation Center’s Solarize Summit: The Solarize Summit Program offers residents of Breckenridge, Frisco, Silverthorne, and Summit County the opportunity to earn up to $3,000 in local rebates for installing solar panels. The program also includes a 5% discount from the installer, Active Energies Solar, with savings capped at $1,500. Rebates are limited and available to those who sign contracts through the program.
• Low-Income Solar Grant Program in Boulder: For low-income residents, Boulder offers a grant program to offset the cost of going solar. This program ensures that solar energy is accessible to more households.
• Energy Smart Colorado program: The Energy Smart Colorado program offers one-time rebates ranging from $500 to $2,500 for homeowners who install solar equipment or make energy efficiency upgrades. These rebates are available through regional sub-programs and aren’t statewide. Areas covered include Boulder, Eagle, Gunnison, Lake, Pueblo, and surrounding counties. Roaring Fork Valley, Southwest Colorado, Summit, Park, Yampa Valley, Routt, and Moffat counties are eligible for energy efficiency and renewable energy assistance, rebates, and financing through the Energy Smart Colorado program. Since rebate programs frequently change, check the Energy Smart Colorado website for the most up-to-date information.

Tax exemptions for solar in Colorado

Colorado offers two major tax exemptions that further reduce the cost of solar installations:

• Colorado Solar Sales Tax Exemption: You won’t have to pay the state’s sales and use tax on your new solar panel system, which can result in significant savings.
• Colorado Solar Property Tax Exemption: Although solar panels increase your property’s value, Colorado exempts this added value from property taxes, allowing you to enjoy the financial benefits of solar without increased property tax bills.

How to get a rebate for solar panels in Colorado

Rebates are offered at different levels based on utility providers and county programs.

To claim your rebate:

1. Research available rebates in your area
2. Contact your local utility provider or visit their website to see if your system qualifies
3. Follow the rebate program’s application process, which often requires proof of purchase, system size, and certification of installation

You can also take advantage of rebates simply by leaving everything to local certified Enphase installers in Colorado, because they live where you live, and they know what rebates are available to homeowners looking to get solar.

Estimated cost savings in Colorado

The typical cost for a solar installation in Colorado can range from $15,000 to $30,000, depending on system size and equipment. State and local rebates, utility programs, net metering benefits, and sales and property tax exemptions can help reduce overall costs and improve long-term savings. The exact savings depend on your utility provider, system design, and energy usage.

Now is the best time to go solar

By taking advantage of local incentives, rebates, tax exemptions, and net metering, Colorado homeowners can save significantly on their solar panel systems. These programs not only reduce the overall costs but also maximize your long-term return on investment.

Navigating the variety of rebates, incentives, and grants available for solar installation can be confusing for homeowners, and missing out on these benefits could cost you valuable savings. Be sure to consult a solar professional to ensure you take full advantage of every opportunity. We can connect you with expert local installers in Colorado who can help you maximize your solar investment and simplify the process of going solar at home.