Complete Guide to Solar Energy in Colorado
Your complete resource for solar energy in Colorado. Everything you need to know about solar laws, solar costs, solar financing, and solar installation.
Why Colorado is Perfect for Solar Energy
Abundant Sunshine
Colorado enjoys approximately 300 sunny days per year with exceptional solar radiation levels, ranking among the sunniest states in the nation. The state’s high elevation increases solar radiation by approximately 2% per 1,000 feet, making Colorado ideal for maximum solar energy production.
100% Property Tax Exemption
Colorado provides a complete 100% property tax exemption for residential renewable energy systems. Your solar installation adds no additional property tax burden, allowing you to benefit from increased home value without proportional tax increases for the system’s lifetime.
Strong Net Metering
Colorado mandates net metering for customer-generators, allowing systems up to 200% of annual electricity consumption. Solar owners receive retail rate credits for excess energy sent to the grid, maximizing savings and accelerating payback periods throughout the state.
Federal Tax Credit Expiring
The 30% federal Investment Tax Credit expires December 31, 2025, representing the final opportunity for maximum federal savings. Combined with Colorado’s 100% property tax exemption, robust net metering, and abundant sunshine, 2025 offers optimal solar investment conditions.
Quick Solar Facts
Explore Solar Topics
Laws & Regulations
Federal ITC, 100% property tax exemption, net metering requirements, Solar Access Act (C.R.S. 38-30-168), HOA protections, and sales tax exemptions for renewable energy components.
Residential Solar
Complete guide for Colorado homeowners, system components, benefits, installation requirements, and understanding Xcel Energy and other utility interconnection processes.
Costs & Savings
2025 pricing ($2.88-$3.41/watt), cost breakdown, savings calculations, payback periods, and ROI analysis for Colorado’s electricity market with Time-of-Use rates.
Financing Options
Solar loans, leases, PPAs, PACE financing, local utility rebates (varies by provider), and available incentive programs for Colorado residents.
Installation Guide
Choosing installers, permits, contracts, installation process, utility interconnection requirements, and navigating the 100% property tax exemption application.
Solar 101
Basics of solar technology, components, panel types, efficiency ratings, battery storage options, and maintenance requirements for Colorado’s high-altitude climate.
Community Solar
Community solar gardens, off-site net metering programs, shared solar options for renters, and Colorado’s expanding community solar legislation.
Solar Calculator
Estimate your solar savings and system requirements based on Colorado electricity rates, Time-of-Use pricing, net metering credits, and exceptional sunshine levels.
Quick Solar Savings Calculator
Important 2025 Updates
Federal ITC Expiration
The 30% federal Investment Tax Credit expires December 31, 2025. Systems must be installed and operational by year-end to qualify. No residential solar tax credit exists after 2025.
IRS Residential Clean Energy Credit →Xcel Time-of-Use Rate Changes
New simplified Time-of-Use rates effective November 1, 2025. Summer on-peak rates: $0.21277/kWh (3-7 PM), off-peak: $0.07884/kWh. Solar paired with storage maximizes savings.
Colorado PUC Xcel TOU Rates →Colorado Solar Laws & Regulations
Understanding the legal framework that supports solar energy in Colorado
Federal Incentives
30% Investment Tax Credit (ITC) available through December 31, 2025, saving $6,000-$10,000 on typical residential systems. No residential credit after 2025.
Learn More →Property Tax Exemption
Colorado provides 100% property tax exemption for residential renewable energy equipment. Solar installations generate zero additional property tax for the system’s lifetime.
Learn More →Solar Access Rights
Colorado Revised Statutes §38-30-168 prohibits HOAs from banning solar installations. HOAs may impose reasonable aesthetic guidelines but cannot prevent functional solar systems.
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