Colorado Solar Tax Credit

If you’re a resident of the Centennial State, chances are you’ve considered the benefits of harnessing the power of the sun for your home. With 300 days of sunshine per year, Colorado’s climate is ideal for those looking to live off the grid and utilize solar energy. And with the Colorado Solar Tax Credit, there’s never been a better time to make the switch to solar power.

Whether you’re interested in reducing your carbon footprint or saving money on your monthly energy bills, solar energy is a smart investment. But navigating the world of solar panel incentives and pricing can be overwhelming. That’s why we’re here to help.

In this blog, we’ll explore everything you need to know about Colorado’s solar panel incentives and pricing, including the Colorado Solar Tax Credit. We’ll provide you with the information and resources you need to make an informed decision about whether solar power is right for your home.

Solar Energy Has Many Benefits

It’s common knowledge that solar energy has a positive impact on the environment, but did you know that it can also have significant benefits for your household? If you’re considering installing solar cells in your home, there’s a lot to gain. Keep reading to discover the many benefits of harnessing the power of the sun for your home.

1. You Can Lower Your Electricity Bill

If you don’t have an alternative power source, you will likely continue to use electricity from the grid throughout the year. The majority of homes in the US use electricity to keep cool in summer and warm during winter. Solar power can be used to reduce your utility bills. Even if your electricity bill is not completely covered, it can still be reduced by reducing energy costs.

2. There Are Ways to Avoid Rising Electricity Costs

Consider the rising cost of electricity when comparing Colorado’s solar panel incentives and pricing. You may not want your household budget to be affected by rising energy prices, especially if you are looking into the future or have a fixed income.

3. Solar Panels Require Very Little Maintenance

After your system has been installed, there is no need to maintain it. Solar panels can withstand harsh weather conditions and are strong, durable, and easy to clean. They are not easy to break and don’t have moving parts. Solar panels are expected to last for as long as 30 years and require little maintenance.

Solar Power in Colorado

Each state has its own solar energy system, which can make it difficult to understand how it works in your particular state. Is Colorado solar energy worth the investment? Are you willing to pay less for solar energy? What are the Colorado solar panel prices and incentives? We’ll be discussing the details of solar energy in Colorado in the rest of this article.

According to SunPower, Colorado is one of the most promising states for solar energy. 86% of Colorado’s buildings can be made solar-viable and have the potential to generate 24.7 million megawatts per year.

According to Your Energy, an extension of Colorado State University, a five-kilowatt system can generate an average of 8,000 kilowatts per year. Colorado households can expect to save $880 annually at an average cost of $.11/KwH.

Colorado Solar Panel Costs

EnergySage reports that the average cost of a Colorado solar panel is $3.13 per watt. A typical Colorado solar installation will cost between $13,302 to $17,998. Meanwhile, the average Colorado solar panel price is $15,650.

Average Colorado Solar Panel Prices by System Size (Before & After Federal Credit)

System Size System Cost After ITC System Cost 
4 kW $12,520 $9,265
5 kW $15,650 $11,581
8 kW $25,040 $18,530

*Data courtesy: EnergySage

Federal Solar Investment Tax Credits

The federal solar tax credit must be canceled. It was however extended to 2024 due to the COVID-19 pandemic. If you have your solar panels installed before December 31, 2022, you will be eligible for a 26% tax credit on your federal taxes. For example, if your solar system costs $20,000, you will owe $5,200 less when filing your 2022 taxes.

Colorado Solar Tax Credit and Rebates

Colorado residents have access to several tax credits and rebates for solar energy, in addition to the federal tax credit.

Net Metering

Like many states, Colorado does have a generous net metering policy. You can connect your solar panels directly to the grid using net metering. You can sell any excess energy you don’t use right away to the grid and earn credits for your future energy bills.

Cash Rebates

Colorado residents can get cash rebates if they want to put solar panels on their homes. Below are two options:

  1. EnergySmart Colorado: You could qualify for a rebate based on where you live, from $400 up to $2,500.
  2. Holy Cross Energy: This amazing per-kilowatt rebate (kW) can result in savings of up to $3,000

Colorado Solar Property Tax Exemption

Are there any exemptions from Colorado’s solar property tax? Yes. Colorado is committed to clean energy and will offer tax breaks to residents who choose to go solar. You won’t have to pay sales tax if you buy a solar system through the Sales and Use Tax Exemption for Renewable Energy Equipment.

The Property Tax Exemption for Residential Renewable Energy Equipment means that you won’t be subject to property tax on any increase in your home’s value due to the installation of your solar panel.

Which Solar System Is Right for Your Home

There are many types of solar systems. They range from small systems that power just one or two appliances to large systems that power entire houses. Below are the main types of solar panels that we recommend for Colorado homes.

Photovoltaic elements are used to power each system. The primary difference between these types is their size and the amount of potential energy they collect. Let’s take a look at the various types.

Portable Solar System

A portable solar power system can only be used on RVs, campers, and trailers. These units usually only use one solar panel and can only power one or two appliances like a TV or laptop.

Grid-Tied Solar Energy System

A grid-tied system can be a great option if you are looking to make the switch to solar energy but still receive most of your electricity from your utility company. This system is more cost-effective than a portable one and will still allow you to qualify for net meters.

Grid-Tied Solar System with Battery Backup

This system will likely reduce your dependence on electricity from the power company. This is because you will be generating your own solar power and have a backup solar battery. As long as the system is in good condition and it remains installed, this type of system should be capable of running an average-sized house. You can use the backup battery for emergencies or maintenance when your main system is not in good condition.

Off-Grid Solar Energy Systems

Off-grid solar power systems allow you to generate electricity without having to draw from any electric company. This system is the most costly, but also the most complete type of solar system available in Colorado.

How to Choose the Best Colorado Solar Panel Company

If you’re looking for a solar panel company in Colorado, you’re in luck – there are many options to choose from. However, not all providers are created equal. To ensure you make the best choice for your needs, here are some tips to follow:

  • Consider the products offered: Take a closer look at the products and services offered by each company to make sure they align with your needs and budget.
  • Check reviews on local websites: Websites like Yelp or Facebook are great places to read reviews from customers who have used the services of local solar panel companies. This will give you a good idea of what to expect in terms of quality and customer service.
  • Choose a local company: Choosing a local company like ESD Solar can be beneficial for a variety of reasons. Local companies have a better understanding of the climate and energy needs specific to the area, and often offer more personalized service.
  • Verify certifications and licenses: Make sure that the company you choose is licensed and certified by the appropriate organizations. This will give you peace of mind knowing that you’re working with a reputable and knowledgeable provider.
  • Check out financing options: Solar panel installation can be a significant investment, so be sure to explore financing options that are available through each provider. This will help you make a decision that fits your budget.

By following these tips, you’ll be well on your way to finding the best solar panel company in Colorado for your needs. Consider a local provider like ESD Solar to get personalized service and quality products.

Colorado Solar FAQs

How Long Can Solar Panels Last?

On average, solar panels can last between 25 and 30 years with very little maintenance. This lifespan is due to the durability of the materials used in solar panel construction, such as tempered glass and aluminum frames. The panels are also designed to withstand harsh weather conditions, including heavy rain, wind, and snow.

Do Solar Panels Increase Colorado Home Value?

In most states, solar panels can increase the value of a home. But, in Colorado, which has a lot of sunshine, solar energy is a great alternative to fossil fuels. According to the National Renewable Energy Laboratory, every $1 saved from a solar energy system will increase your home’s value by $20 when you sell.

How Do Solar Photovoltaic PV (PV) Panels Work?

Solar panels absorb sunlight’s energy and convert it to direct current (DC). Most homes and businesses use alternating current electricity, so this DC electricity must pass through an inverter before becoming usable AC electricity that you can either use inside your house or return back into the electric grid.

Does Solar Work on Cloudy Days?

Your solar energy system’s capacity for producing energy depends on sunlight. When cloudy, your panels generate slightly less power while nighttime yields more. Going solar even in cloudy conditions makes financial sense due to the high electricity costs and financial incentives available; make it your go-to choice!

What Happens When My Solar Panels Are Covered With Snow?

Solar panels convert sunlight into electricity, but they won’t function if snow covers them. Your panels won’t be damaged by snowfall as it isn’t heavy enough. Plus, any accumulation of snow can easily be cleaned away – so why wait? Get those solar panels working today!

Do Solar Panels Work in a Blackout?

Your solar panel system will automatically shut down if connected to the grid, in order to protect emergency personnel and people working on repairs for electricity utilities from being injured by solar panels that send power back into circulation.

Are Solar Panels Compatible With My Roof?

Southerly-facing roofs with little or no shade and space for a solar panel system are ideal candidates for installation. If your home doesn’t already have the ideal roof, there are many options to make it more energy-efficient. Our team of designers will inspect your property to identify the most efficient solution.

Ready to Go Solar in Colorado?

Looking to save money on your energy bills while also reducing your carbon footprint? Our team of experts at ESD Solar can help you transition to solar power and take advantage of the Colorado Solar Tax Credit.

By installing solar panels in your home or business, you can harness the power of the sun to generate clean, renewable energy. Not only will this help you save money on your monthly energy bills, but it will also reduce your dependence on non-renewable energy sources and lower your carbon emissions. Contact us today!

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