Colorado is famous for its mountains and ski resorts, so one may not associate the state as being favorable for adopting solar. However, Colorado one of the sunniest states in the country, getting more sunshine throughout the year than even California. Today, solar power is thriving in Colorado due to its great state support, solar rebates and, of course, the number of sun hours that area gets.
As of September 2019, the state’s average cost of solar panels per watt is $3.66/W. This makes a typical out-of-pocket price of installation of the 5kW solar panel system to range from $14,000 to $17,000 before Federal Tax Credit or any state incentives or rebates.
The Federal Investment Tax Credit – is also known as the Investment Tax Credit (ITC) program. It gives you an opportunity to deduct 30% of the entire cost of the solar equipment and its installation on your federal income taxes and has no cap on its value.
Sales Tax Exemption - everyone who installs a photovoltaic system on their property in Colorado is exempt from all associated sales taxes on that solar equipment.
Property Tax Exemption - It is been proven that solar panels add value to the house they are installed on. However, the residents of Colorado are exempt from the higher property taxes on the increased value of the house due to solar system installation.
Net Metering Program – Net Metering lets you get a credit on your monthly bill for extra solar power your PV system generates. Colorado has one of the best Net Metering programs in the nation, with the option to not only give you back energy credits on your next bill but also paying you at the end of the year for all extra energy you were able to contribute to the grid.
EnergySmart Colorado – This utility company offers rebates for new solar installations for residents in Eagle Valley, Roaring Fork Valley, and Summit County. Depending on where you live, rebates are anywhere from $400 to $3,000.
Holy Cross Energy – Holy Cross offers a per-kilowatt rebate for its customers to decrease the price of going solar. The rebate is $750 for the first 6 kW and is a little less for bigger systems. The average saving on a 6kW system is $4,500 with this incredible incentive.
Besides obvious advantages of solar power, living in Colorado adds an additional benefit to this list. Colorado has one of the best Net Metering in the country and offers great state incentives, tax breaks and rebates on solar. Colorado is also famous for its 300 days of sunshine a year, which makes the state one of the sunniest in the USA. With this much sun energy and significant financial assistance, the only way to go is solar.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.