Find out if solar panels are right for your home in Colorado.
Solar panels can be spotted all over The Centennial State on roofs of homes and businesses alike. The state was the first to establish a Renewable Portfolio Standard (RPS) back in 2004. The RPS mandates that a certain percentage of the electricity generated by utilities must come from renewable sources like wind, solar, and hydro. Initially, the target was set at 10% by 2015, but it has since been updated multiple times, aiming for even higher percentages.
The RPS has been a game-changer, not just for Colorado but as a model for other states. It's helped drive investments in renewable energy projects, create green jobs, and reduce greenhouse gas emissions.
Solar power in Colorado has grown rapidly, with 2,183.2 MW installed as of 2021, a significant increase from previous years. A lot of the growth can be pointed back to having the most favorable net metering laws with no limit on users.
While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
The average price for a home solar panel system in Colorado is $20,640 for a 6kW system or about $3.44 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Colorado | $18,780 | $31,300 | $9,390 | $3.13 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $15,650 | $8,785 |
| 6 kW | $18,780 | $10,542 |
| 7 kW | $21,910 | $12,299 |
| 8 kW | $25,040 | $14,056 |
| 10 kW | $31,300 | $17,570 |
Unfortunately, solar is not a one-size-fits-all solution, even in sunny Colorado. Before you dive headfirst into a solar investment, it is crucial to weigh the good, the bad, and the sunny. We're here to lay out the most common pros and cons, but ultimately, the decision is yours to make.
So, whether you're drawn to the idea of slashing your energy bills or concerned about the upfront costs, we've got you covered.
We want to give you the full picture so you can decide if going solar is the right move for you.
Based on data alone, solar is a highly viable option for Colorado. The state enjoys around 300 sunny days per year, making it one of the best places in the U.S. for solar power generation.
Additionally, Colorado has various incentives and rebates to make solar installations more affordable. The state also has one of the best net metering policies, allowing homeowners to get credited for excess energy sent back to the grid.
Lastly, the average solar savings for a 6 kW solar panel system in Colorado is about $1,800 annually. This translates to approximately $45,000 over 25 years. Compared to the U.S. average, Colorado's savings are slightly higher.
And while this all sounds great, consider your home and finances. Additional unexpected costs like roof structure reinforcements and permits could add up.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Colorado. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Colorado has one of the best net metering laws, requiring utilities to pay you for excess energy generated. Xcel's Solar Rewards Program can net you around $700 annually, and there are property and sales tax exemptions.
For low-income residents in Boulder, a grant program covers up to 50% of project costs.
Some incentives are statewide and others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in Colorado. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Xcel Energy - Net Metering | CO | Regulatory Policy | Net Metering |
| Aspen Electric - Net Metering | CO | Regulatory Policy | Net Metering |
| Renewable Energy Standard | CO | Regulatory Policy | Renewables Portfolio Standard |
| Aspen Solar Pioneer Program - PV Production Incentive | CO | Financial Incentive | Performance-Based Incentive |
| Colorado Solar/Wind Easements and Rights Law | CO | Regulatory Policy | Solar/Wind Access Policy |
| Mandatory Photovoltaic System Cost Estimate | CO | Regulatory Policy | Line Extension Analysis |
| Fort Collins Utilities - Net Metering | CO | Regulatory Policy | Net Metering |
| City of Boulder - Green Points Building Program | CO | Regulatory Policy | Building Energy Code |
| Denver - Sustainable Building Guidelines | CO | Regulatory Policy | Energy Standards for Public Buildings |
| Holy Cross Energy - Renewable Energy Rebate Program | CO | Financial Incentive | Rebate Program |
Xcel's Solar*Rewards Program: If you're an Xcel customer, you can sign up for this program that pays you for the amount of kWh you produce with your solar panels. You can expect to reap about $700 annually or $6,500 over ten years.
Property and Sales Tax Exemptions: Colorado exempts homeowners from taxes on the added value from solar installation and 100% of related sales and use taxes.
Low Income Solar Grant Program in Boulder: This program offers up to 50% of total project costs for income-qualified homeowners.
There are hundreds of solar companies in Colorado. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Renewable projects in Colorado's renewable energy sector are heating up!
Driven by a mix of government incentives and rapidly declining costs of solar panels and batteries, several big projects are in the pipeline for Colorado. For instance, VSK Energy's upcoming photovoltaic panel factory in Brighton is a $250 million investment that could produce up to 4 gigawatts of panels a year. United Power is also making strides with plans for 300 megawatts of renewable power and 80 megawatts of battery storage, targeting areas north and west of Denver. Colorado Springs Utilities is another key player, preparing to issue proposals for 525 megawatts of new solar arrays and 100 megawatts of battery storage.
These projects are not just about generating power; they're also about storage and distribution. For example, Primergy's planned solar array near Durango will come with equal amounts of battery storage, making it a comprehensive solution for 56,000 homes. Funding for these initiatives often comes from government grants, like Amprius Technologies' $50 million clean energy grant. This all comes as the Energy Information Administration announced that solar and wind out-generated coal for the first time in the U.S., marking a significant turning point in the country's energy landscape.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Colorado decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Colorado can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Colorado is $20,640 for a 6kW system or about or about $3.44 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
When designing a solar system, there are several key factors to consider. You'll want to start by assessing your energy needs to determine the system size that will cover your consumption. Location matters, too—think about the angle and orientation of your roof, as well as any potential obstructions like trees or buildings that could block sunlight.
Don't forget to consider local climate conditions, as they'll impact your system's efficiency.
Finally, make sure to explore available incentives, rebates, and financing options to maximize your investment. It's a good idea to consult with professionals to tailor the system to your specific needs and local regulations.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction.
Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees.
If you're working with a solar installation company, they often handle the permitting process for you.
Denver Planning and Development
Solar Information for Installers
City of Aurora Solar Installations
Fort Collins Building Services
