Learn more about renewable energy:
Renewable Energy: County Goals
Why is a Renewable Energy Transition Important?
Renewable Energy 101
Renewable Energy Financial Incentives
Solar Resources
Solar for Your Home
Solar for Your Business
Renewable Energy Financial Incentives
Solar energy is a great choice in Colorado due to the sunny weather. This page will go through the federal and state incentives available.
Residential Incentives
Federal Incentives
The Federal Solar Investment Tax Credit is a tax incentive designed to encourage the adoption of solar energy by reducing tax liability. With this credit, individuals can claim 30% of the total cost of solar equipment, including labor, materials and installation expenses.
Residents are required to own the solar panels, leasing is not eligible. If you purchased an interest in an off-site community solar project, this is also eligible.
Learn more about this incentive.
State of Colorado Incentives
Net Metering: Colorado has a generous net metering policy. Net metering allows you to connect your solar panels to a public-utility power grid. If you produce any excess energy that you don’t need right away, you can sell that energy back to the grid for credits that can be used toward your future energy bills.
Cash Rebates:
- EnergySmart Colorado: Depending on your location, you could be eligible for a rebate of anywhere from $400 to $2,500.
- Holy Cross Energy: this fantastic per-kilowatt (kW) rebate can equate to savings of as much as $3,000.
Weatherization Assistance Program: The Weatherization Assistance Program (WAP) is a state-level initiative to improve the energy efficiency of low-income households. The program provides eligible residents with various weatherization services like roof repairs and insulation, plus energy efficiency upgrades like solar systems to reduce energy consumption, lower utility bills and increase overall home comfort.
Learn more about income eligibility.
Colorado Solar Property Tax Exemption
- Sales and Use Tax Exemption for Renewable Energy Equipment prevents you from having to pay sales tax when you purchase your solar system.
- Property Tax Exemption for Residential Renewable Energy Equipment means you won’t have to pay property tax on the increased value of your house as a result of the installation of your solar system.
Business and Tax-Except Organization Incentives
Federal Incentives
There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems:
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
Solar systems that are placed in service in 2022 or later and begin construction before 2033 are eligible for a 30% ITC or a 2.75 ¢/kWh PTC if they meet labor requirements issued by the Treasury Department or are under 1 megawatt (MW) in size.
Learn more about these incentives.
State of Colorado Incentives
Colorado does not have a state tax incentive for renewable energy but businesses can take advantage of net metering.
