Colorado Solar Energy Rebates and Incentives
Colorado solar energy rebates and incentives make going solar more affordable than ever before. Incentives can come and go without much notice or publicity, making it hard for homeowners considering solar electricity at home to keep track of how much rebate money they can count on. We recognize this dilemma, and part of our service to you includes identifying and applying for every available rebate for you so you don’t have to worry about missing out on anything.
Colorado Government Solar Energy Rebates + Incentives
Solar electric systems in Colorado are exempt from sales tax and property tax increases in many situations.
Residential solar electric systems in Colorado are exempt from
state property taxes.
Colorado law grants cities and counties the option to offer a local property tax exemption on solar electric systems as well.
Residential solar electric systems in Colorado are exempt from state sales and use taxes.
Colorado law grants cities and counties the option to offer a local sales and use tax exemption on solar electric systems as well.
Colorado Utility Solar Energy Rebates + Incentives
Specifics about Colorado’s larger electrical utilities are outlined below, but many of the state’s smaller utilities offer up-front and/or performance-based incentives to their customers for installing solar PV systems at home as well.
Xcel Energy, Colorado’s largest electrical utility, currently offers two rebates on systems up to 10 kW:
- Customers who own their solar PV system recieve an up-front rebate of $1.00 per Watt of system size. They’ll also receive monthly performance-based rebates of $0.09 per kWh produced.
- Third-party-owned systems (customers on leases or the PowerSavings Plan) receive monthly performance-based rebates of $0.12 per kWh produced.
Black Hills Energy, formerly Aquila, offers different rebates for customer-owned and financed solar PV systems:
Customer-owned systems:
- Up-front rebate of $1.00 per installed Watt for 3 kW systems and smaller ($0.75 per installed Watt for 3-10 kW systems)
- Performance-based rebate of $0.0945 per kWh produced paid annually for 9 years for 3 kW systems and smaller (the same production-based rebate is paid for 3-10 kW systems, but only on the first 6 kW)
Financed systems:
- Performance-based rebate of $0.1224 per kWh produced paid annually for 10 years for 3 kW systems and smaller ($0.1080 per kWh for 3-10 kW systems, but only on the first 6 kW)
Systems larger than 10 kW are also eligible for up-front and performance-based incentives that decrease with system size.
Colorado Springs Utilities (CSU) customers are eligible for a rebate of $1.80 per AC Watt produced, up to 10 kW.
Fort Collins Utilities customers can receive a rebate of $2 per Watt of system size (up to 3 kW) if they have a solar PV system installed at home by a licensed contractor. This rebate requires an energy audit to be performed on the home.
Other Colorado Solar Energy Rebates + Incentives
Residents of the Roaring Fork Valley area are eligible for a $.50/Watt rebate on newly-installed solar PV systems, with a maximum rebate of $3,000.
Lakewood residents having a solar electric system installed at home are subject to a building permit fee. The City of Lakewood will refund the fee to homeowners after a final inspection is performed on the system.
Aurora residents having a solar electric system installed at home are subject to a building permit fee of up to $500. The City of Aurora’s rebate program will waive that fee, provided local utility Xcel Energy performs a $90 energy audit on the home first (the $90 is refunded with this program as well).
By enrolling in the EnergySmart program and receiving a home energy audit, Boulder County residents can earn a $500 rebate for a new solar PV system (2 kW – 60 kW in size). Additional rebates are available for completing the audit’s recommendations for energy savings as well.
