Key takeaways


estled in the heart of the United States, Colorado is a shining example for those who are passionate about renewable power. The Centennial State isn't merely aspiring to a greener future; it has firmly committed to achieving 100% clean energy by 2050. This ambitious goal is not only rooted in the state’s strong environmental values but also takes full advantage of its favorable geography. With approximately 300 sun-drenched days annually, solar energy in Colorado flourishes under this abundant sunshine.

Thanks to a harmonious blend of abundant natural resources and supportive regulations, Colorado has become a perfect destination for homeowners looking to embrace solar energy. The state's net-metering program, alongside various incentives, has made it economically attractive for residents to harness the sun's power. Colorado's commitment to solar shines through as it proudly secures the 12th spot on the national scale, boasting a substantial 2,995 MW of photovoltaic (PV) energy integrated into its grid.

How Much Does It Take to Get Powered by the Sun?

When it comes to embracing solar power in Colorado, the initial expense might raise some eyebrows, but it's essential to look at the bigger picture. As of September 2023, the price tag associated with solar panels in Colorado stands at an average of $2.51 per watt. If you're a homeowner looking to equip your residence with a standard 6 kW power system, this would mean an initial outlay of roughly $15,060. It's a significant sum, no doubt, but it's just one part of the story.

Colorado offers an assortment of incentives that significantly reduce that upfront amount. When you factor in these benefits, the initial investment shrinks, making the transition not just environmentally sound but also economically wise.

Furthermore, the long-term financial benefits far outweigh the initial costs. Colorado homeowners who make the switch to solar can anticipate savings that will continue for decades. A conservative estimate indicates potential savings of approximately $35,000 over a span of 20 years. While this number is impressive in its own right, remember that actual savings can vary. Your home's specific characteristics, the type of solar system you opt for, and even the trajectory of future electricity prices can influence the final figures.

Commercial solar energy systems are scalable solutions tailored for businesses, providing clean and cost-effective electricity generation to meet their energy needs.

Incentive Galore: Financial Perks for Homeowners

As a homeowner, you stand to benefit from a variety of financial incentives that can make solar energy in Colorado both an economically and ecologically rewarding decision.

  • Federal Tax Credit: Let's start with the big one—the federal investment tax credit, or as it's more recently known, the Residential Clean Energy Credit (RCE). Now extended until 2034, this tax credit allows you to shave off a significant chunk of your installation costs. If your system is installed between 2022 and 2032, you'll be eligible for a credit that can cover up to 30% of the total costs.
  • Colorado Sales and Use Tax E xemption: Colorado offers a sales tax exemption specifically for renewable energy equipment. When calculating your PV installation expenses, you can exclude the state's 2.9% sales tax, which translates into direct savings.
  • Property Tax Exemption: You might worry that installing a PV power system could boost your property value and, by extension, your property tax. Thankfully, property tax exemption for solar energy in Colorado has you covered. The added value to your home from the installation is tax-exempt, making your property not just more eco-friendly but also potentially more marketable if you ever decide to sell.
  • Net-Metering: Colorado boasts some of the nation's most favorable net-metering policies. It's common for your PV system to generate more energy than your household consumes. Instead of wasting it, you can actually sell the surplus energy back to your local power grid.
  • Local Rebates and Programs: Many local areas offer additional incentives. For example, if you're a Colorado Springs Utilities customer, you might qualify for a rebate that offers up to 10 cents per watt for rooftop systems under 15 kW. Programs like EnergySmart Colorado offer rebates ranging from $400 to $2,500, depending on your location. And for those using Black Hills Energy, they offer a payout rate of 3 cents per kilowatt for system sizes up to 20 kW.

Finding Your Trusted Installer: No Small Decision

Now that you're sold on the financial benefits of getting solar panels in Colorado, the next step is finding the right people to turn your solar dreams into reality. You'll want to consult multiple installers for quotes and reviews to compare what they offer in terms of costs, warranties, and types of setups. Don’t skip the fine print; it’s crucial to know what you're getting into. Some installers might even assist you in navigating the complex world of incentives, making the process easier for you.

Best Installers for Solar Panels in Colorado

Colorado solar incentives boasts a thriving solar industry with over 180 installation companies. To help you navigate through your options, here's a rundown of some of the best PV installers in the Centennial State.


If top-tier quality is what you're after, SunPower should be at the top of your list. Known for their high-efficiency systems, the company employs custom-designed components that work seamlessly together. But it doesn't end there. This company also offers cutting-edge products like the SunVault battery storage and electric vehicle (EV) chargers.

What truly sets SunPower apart is their comprehensive 25-year warranty, which doesn't just cover the panels, but also includes system components and workmanship. Even more impressively, their warranty ensures that after a quarter-century, your system will still be producing at 92% efficiency. That's long-term peace of mind.


If customer support is a make-or-break factor for you, Palmetto emerges as an excellent contender. Unlike other companies that make you chase them for support, Palmetto offers various channels to assist you, from live chat to dedicated helplines. They also provide active system monitoring, remote panel diagnosis, and timely service alerts.

While Palmetto employs third-party teams for installation, they maintain rigorous oversight on all projects, keeping customers informed with real-time updates. Their additional services, including active monitoring and prompt service alerts, further boost their credibility. Warranty-wise, they offer a 25-year guarantee for panels, 12 years for inverters, 10 years for workmanship, and an additional five years specifically for roof penetration.

Blue Raven

Blue Raven has earned a stellar reputation in the solar industry, thanks to its unwavering trustworthiness. With a dedicated in-house team, they ensure end-to-end installation services for homeowners. Their partnerships with the industry's leading manufacturers like Q Cells and Silfab enable them to craft tailored solutions for diverse needs.

Particularly noteworthy is Blue Raven’s financing package - the BluePower Plus+. It’s a dream for those who wish to step into the solar power world with minimal initial investment, offering almost zero upfront costs coupled with five years of locked-in interest rates. As for warranties, they ensure peace of mind with a 25-year system guarantee, a 10-year assurance on workmanship, and a unique two-year production guarantee.


Key takeaways

Sep 26, 2023
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