Are solar panels worth it in Colorado? In this guide, we’ll examine both the advantages of adding solar panels in Colorado as an investment, and explore whether going solar makes sense for You! Let’s dive right in to discover whether going solar is worth considering!
Is Colorado a Good Place for Solar?
Colorado enjoys over 250 sunny days annually, making it an excellent location for installing solar panels. These panels provide consistent renewable energy throughout the year. Solar panel installations in Colorado homes can be quite affordable, making the system necessary to reduce utility costs more cost-effective. You may also qualify for incentives, tax credits, and rebates by installing these panels.
How Much Can You Save by Switching to Solar?
Colorado and many other states have seen electricity bills skyrocket over recent years, with homeowners paying on average around $127.88 monthly on average for electricity costs. But by investing in solar panel installations you could save as much as $1,000 annually and up to $25,000 over their lifespan thanks to Colorado’s net metering program; each time your excess solar energy gets added back into the grid and contributes further reducing your electricity bills.
Do Solar Panels Increase Property Valuation?
Yes, installing solar panels on your Colorado home can increase its resale value significantly. According to research conducted by Zillow, houses with solar panels tend to sell for 4.1% more than homes without them – though other factors, including location, cost of solar panels, local energy prices, and age of the solar panels themselves could impact this figure.
Consider this: if your home costs around $500,000, installing solar panels from ESD Solar could potentially increase its resale value by an extra $20k! Contact us for a free quote now.
What Is Your Home’s Electricity Consumption?
Solar power systems come in various sizes, and the right one for you depends on how much energy you use regularly. The cost of these panels is linked to their size, with Colorado’s average being about $2.69 per watt. So, it’s essential to consider your energy needs.
If you only use 500 kWh of electricity per month, solar panels might not provide significant savings. However, for most Colorado homeowners who use around 711 kWh per month, going solar can be a wise choice. To determine if solar is suitable for you, review your past energy bills to figure out your average electricity consumption.
How Much Does It Cost to Go Solar in Colorado?
In Colorado, homeowners typically spend about $2.69 per watt on solar panels. To cover their energy expenses, Coloradoans typically need an average system size of approximately 7.5 kilowatts to cover their needs – this equates to an approximate total cost of solar panels in Colorado of $20,175, or $14,122 when factoring in federal tax incentives.
The value of solar panels typically increases in areas with high electricity costs and rising energy bills, such as Colorado where the average cost of electricity per kilowatt-hour averages 11.36 cents, lower than the national average. Coloradans consume approximately 711kWh/month as opposed to the national average of 893kWh per month.
Due to low electricity costs and consumption, solar panels in Colorado may not provide as much financial benefit as in states with higher electric costs and consumption rates.
What Is the Payback Period for Solar Energy in Colorado?
Colorado homeowners are witnessing swift payback periods of less than 10 years! Several factors, including initial costs, overall energy usage, and generation, as well as financial incentives, play a crucial role in determining the payback period for solar installations in Colorado.
How Much Sun Does Your Roof Receive?
Sunlight exposure is of vital importance in maximizing the value of solar panels on roofs, with more sun being better for solar power production. Colorado stands out as an ideal location for installing solar panels as it enjoys around 300 sunny days each year making it one of the top sunny states.
In addition to the state’s sunny reputation, individual factors also matter for your property. To get the most out of your solar panels, it’s important that they face the sun’s path in the sky. Roofs that face south or west are ideal for solar energy systems. This orientation allows the panels to capture the maximum amount of sunlight, resulting in higher energy production. So, if your roof faces south or west, you’re in a great position to generate more solar energy.
Colorado Solar FAQs
How long will it take solar panels in Colorado to pay for themselves?
On average, it takes around 10 to 13 years for solar panels in Colorado to cover their own cost. Some homeowners in Colorado have even managed to recover their solar investment within just 10 years.
Does solar power work in Colorado?
Yes, solar power is a smart choice in Colorado. The state enjoys plenty of sunlight throughout the year, making it a great place for solar panels. Additionally, Colorado offers various discounts and incentives to help residents afford solar panels.
Benefits of Solar Energy in Colorado
Most homeowners in Colorado realize the benefits of going solar, but many don’t. Below, we’ll explore the biggest benefits of solar panel installation in Colorado.
Electricity Bill Savings
One of the greatest advantages of going solar in Colorado is saving on your electricity bills, with solar panels saving an average of up to $1,000 annually on bills for electric usage – or $14.479 over its lifespan! Coloradans typically spend an estimated average monthly bill of $87.388; that can add up to savings of $14,4779 over time!
Installing solar panels not only lowers costs but also makes you less dependent on utility companies for energy costs, providing stability that allows for better planning and budgeting, especially given rising energy prices.
Reduced Taxes and Access to Other Incentives
Both the federal government and Colorado state encourage solar adoption to promote clean energy. Going solar also opens the door to various benefits and incentives. If you purchase solar panels with cash or through loans, the federal investment tax credit (ITC) offers a significant incentive. In Colorado, this amount averages out to roughly $6,053.
Colorado also provides other solar incentives, including:
- Net metering: Helps you offset electricity costs and potentially eliminate energy bills.
- Exemption from property tax: Prevents your property taxes from increasing when you install solar panels, even though your home’s value may rise.
- Sales tax exemption: Exempts you from paying sales tax on solar equipment.
- SREC program: Offers cash incentives for solar energy production.
Home Value Increase
Solar panels can enhance the value of your home. Zillow data suggests that solar panels can increase property value by 4.1%. This value may even be higher if you live in areas with higher average home values, such as Denver, Boulder, or Colorado Springs.
The Property Tax Exemption allows you to enjoy this increased home value without paying extra property taxes.
Clean Renewable Energy
Apart from financial benefits, going solar is an environmentally conscious choice. By switching to clean energy, you can reduce your carbon footprint and contribute to reducing pollution in the air, water, and land. Energy independence also shields you from future increases in electricity prices, ensuring a stable energy future.
Wrap-up: Are Solar Panels Worth It in Colorado?
Colorado ranks 13th nationally for solar adoption and friendliness due to its abundance of sunny days, making solar an attractive option for many homeowners. But solar may not be right for everyone – for some households, it might even be less suitable than alternatives such as grid energy solutions or even alternative forms of power like geothermal.
Solar can be an attractive solution for many, but there are a few key considerations when making this decision. Examine your monthly energy bills, assess the shading on your property and roof, explore financing options, and determine when your solar panels will pay back their initial costs. While solar offers numerous advantages, it’s crucial not to get carried away solely by potential savings.
To make an informed decision, consider reaching out to a reputable local solar panel installer who can assist you in determining whether solar panels are a worthwhile investment for your specific situation. Contact ESD Solar today!