Solar power in Denver, Colorado
As a resident of Denver you are probably buying your power from Xcel Energy.
Excel Energy offers 1 for 1 net metering as a key incentive to support its customers to install solar power on their homes.
Are there also upfront incentives to install solar panels on my home in Denver?
Xcel Energy also offer a REC (Renewable Energy Credit) program however, unless your system is over 25kW the credit is only $5 per MW of solar energy. Even a 10kW solar system, which is larger than the typical sized resdential solar system installed on a home in Denver, only makes about $60 a year from REC's, but hey it's better than nothing.
The most importnat upfront incentive to help you cover the cost of installing solar panels on your home is the solar tax credit.
While we refer to this as an upfront tax credit, you do not receive the cash benefit of this until you do your taxes for the year in which you install the solar system. This means receipt of the tax credit can be up to 18 months after you install your system. Claiming the full value of the tax credit also requires you to have a tax liability against which this credit can be claimed.
Net Metering Broken Down
In periods (usually during the middle of the day) when your solar system is producing more power than your home is using, you are credited for the excess solar energy you feed back into the grid at the full retail rate of power.
Because solar systems generate most power during the middle of the day, and most households use most of their power in the evening, net metering is a key reason why installing solar panels on your home in Denver can have a short payback period and offer excellent long term returns.
Why net metering in Denver is better than in some other places?
If in any given month your solar system exports to the Excel grid more electricity than what your home drew from the grid Excel will pay you for this excess.
The excess is valued at the retail per kWh rate. You can elect to be paid out this value in cash or roll the value forward for use as a credit against possible future electricity bills. In many other jurisdictions you are not paid cash for your excess export if it is above your usage from the grid or are paid out at a lower avoided cost rate for solar export.
The average cost of installing residential solar panels in Denver,
Colorado in 2024 is
$2.67 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Denver, CO
is $13,350.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Colorado is only 706kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Denver solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Colorado solar savings calculator can do this because it contains a database of the electric rates charged by XCEL - Public Service Company of Colorado, Intermountain Rural Elec Assn, Morgan County Rural Elec Assn, Mountain View Elec Assn Inc, United Power Inc, WAPA-- Western Area Power Administration
How much can solar panels save you in Denver
What does the cost of a real solar system look like?
Facts about installing a 10.88kW solar system in Denver, CO
This system would offset 100% of your energy usage if your typical monthly bill is $164, however your situation may vary so try our Denver solar calculator to get a result tailored to you.
$19,323
Net cost of system
8 Years 3 Months
Average payback time
15,968 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
22¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 10.88kW system
Life-time savings on this system over the next 25 years
$59,621
(Prices shown after repayments of capital)
63
Solar companies in Denver, CO that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Denver
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,371 | $6,881 |
| 4kw | $8,288 | $8,951 |
| 5kw | $10,101 | $10,909 |
| 6kw | $11,855 | $12,803 |
| 7kw | $13,468 | $14,545 |
| 8kw | $14,978 | $16,176 |
| 9kw | $16,450 | $17,766 |
| 10kw | $17,760 | $19,181 |
Find out what system size you need for your home
Going solar in Colorado
Check out all of the ways energy providers of Colorado can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Sales and Use Tax Exemption for Renewable Energy Equipment | State | Sales Tax Incentive |
| Property Tax Exemption for Residential Renewable Energy Equipment | State | Property Tax Incentive |
| RENU Loan Program | State | Loan Program |
| Net Metering | State | Net Metering |
| Xcel Energy - Residential Energy Efficiency Financing | Utility | Loan Prgoram |
| Xcel Energy - Solar*Rewards Program | Utility | Performance-Based Incentive |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
