How Do We Rate Solar Companies?
We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.
Is It Worth Going Solar in Colorado?
Going solar in Colorado can be a worthwhile investment. The state is known for its sunny climate, boasting about 300 days of sunshine each year, which is ideal for solar energy production.
Colorado offers several incentives for solar panel installations, including:
- Federal Solar Investment Tax Credits
- Colorado Solar Rebates and Tax Credits
- Weatherization Assistance Program (WAP)
- Colorado Solar Property Tax Exemption
These incentives can significantly reduce the initial cost of going solar and improve the return on investment. Additionally, the average payback period for solar panel installation in Colorado is around 11.5 years, and households can expect an average annual savings of $880.
It’s also projected that by 2035, 20 percent of Colorado Springs’ energy needs will be met by renewable energy sources, with efforts to install over 1,000 megawatts (MW) of solar in the next 5 years.
However, the value of going solar for you will depend on specific factors such as your home’s sun exposure, electricity usage, and the solar panel system you choose. It’s recommended to consult with local solar panel installers and energy advisors to get a tailored assessment for your home.
How much does solar save homeowners in Colorado?
Homeowners in Colorado can save a considerable amount on their energy bills by installing solar panels. Assuming an average 6kW solar system that produces around 9,600 kilowatt-hours (kWh) of energy per year and considering Colorado’s current electricity rate of 15 cents per kWh, the average homeowner can save up to $1,440 annually1. These savings are a significant incentive for many to consider solar power as a viable alternative to traditional energy sources.
What is the average cost of going solar in Colorado?
The average cost for a 5 kW solar panel system in Colorado is about $16,283 before incentives. Prices can range from $13,841 to $18,725, depending on various factors such as the size of your home and energy needs. After applying the federal investment tax credit (ITC), which typically covers 30% of the installation costs, the price can drop significantly. It’s also worth noting that prices may be up to 20% lower when comparing multiple offers.
*Keep in mind that these prices are averages and the actual cost can vary.
Colorado Solar Incentives
Yes, Colorado offers several tax credits and incentives for homeowners who decide to go solar. These include:
- Federal Solar Investment Tax Credits: Homeowners can claim a tax credit for a percentage of the cost of installing a solar energy system. The credit is available for both residential and commercial properties.
- All renewable energy property in Colorado is taxable unless specifically exempted under Colorado law.
- Colorado does not have any general statewide property tax incentives for renewable energy. However, §§ 30-11-107.3 and 31-20-101.3, C.R.S., allow county and municipal governments to “offer an incentive, in the form of a [county/municipal] property tax or sales tax credit or rebate, to a residential or commercial property owner who installs a renewable energy fixture on his or her residential or commercial property.” – Colorado Department of Local Affairs
- These may vary by utility company and can provide additional savings on the installation of solar panels.
- Weatherization Assistance Program (WAP): This program helps low-income households with energy efficiency improvements, which may include solar panel installations.
- Colorado Solar Property Tax Exemption: This exemption allows property owners to exclude the added value of a solar system from the valuation of their property for taxation purposes.
It’s important to note that tax credits and incentives can change, so it’s a good idea to check the latest information or consult with a tax professional for the most current details.
Are There Any Community Solar Programs in Colorado?
Yes, Colorado has several community solar programs that allow residents to benefit from solar energy without installing panels on their property. Here are some key points about community solar in Colorado:
- Community Solar Gardens Act: Passed in 2010, this act enabled the creation of solar gardens by investor-owned utilities with a capacity between 10 kilowatts and 2 megawatts.
- Xcel Energy’s Solar*Rewards Community: One of the nation’s largest community solar programs, offering subscribers a share of a solar farm near them.
- Savings: Subscribers can save 5-10% off traditional electricity costs annually.
- Low-Income Access: There are initiatives like the Low-Income Community Solar Demonstration Project, which aims to reduce electricity costs for low-income households.
To join a community solar program, residents typically subscribe to a share of a solar farm and receive credits on their electric bill for the energy produced by their share. It’s a great way to support renewable energy and save money on electricity without the need for rooftop installations.
