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Solar Tax Credits and Rebates in Colorado

Colorado is one of the sunniest states in the US, with an average of 300 days of sunshine each year. That makes it an ideal place for using solar energy. If you've been considering harnessing the power of this Colorado sunshine to help improve your energy independence and lower your utility bills by installing solar panels, the federal and state, and local governments are making it more affordable by offering tax credits to homeowners who invest in this equipment. These credits are easy to claim, but you have to act this year. The federal solar panel tax credit expires on December 31, 2021.

Dec. 28, 2020 update: Extended renewable energy tax credits have been included in a $1.4 trillion federal spending package alongside a $900.

The solar investment tax credit (ITC), which was scheduled to drop from 26% to 22% in 2021, will stay at 26% for two more years. This means that all solar projects that begin construction in 2021 and 2022 will be able to receive a tax credit of 26%. All markets will drop to a 22% tax credit in 2023.

Solar Panel tax credit graphic - Solarise Solar Colorado Springs

Federal Solar Investment Tax Credit

The IRS Investment Tax Credit (ITC) for solar investment offers thousands of dollars in savings when you install a solar energy system at your home. With the extended tax credit for your photovoltaic system by year-end 2032, you can claim a federal tax credit of 30% of your total solar panel system cost! This solar panel installation tax credit includes equipment and installation. 

NOTE: After 2033, the credit will be permanently reduced to 26%.

Am I Eligible to Claim the Federal Solar Tax Credit?

Not every property or solar panel system qualifies for the credit. In order to claim the solar tax credit, these requirements must be met:

  • The solar panels must be installed between 1/1/2006 and 12/31/2023
  • The panels must be installed on your primary or secondary home (not a rental or commercial property)
  • They must be installed on a property located in the United States
  • The Solar PV system must be new or being used for the first time.

How Will the Federal Solar Panel Tax Credit Benefit You?

The federal Investment Tax Credit (ITC) makes the home improvement project of switching to a solar panel system more affordable for homeowners. The IRS’s tax credit applies to solar panels, solar battery storage, and other solar energy equipment and installation.

This large federal tax credit adds to the upfront savings of zero down payment and low-cost financing offered by Solarise Solar. As a result, solar panels ROI happens much sooner than it did when the adoption of residential solar panels first began to spread in the United States.

Today, homeowners typically generate substantial savings on electricity bills over the long term by cutting their use of the public grid or eliminating it entirely. That is due to the significant long-term savings they realize by shrinking or even eliminating their electric bill. By some industry estimates, an average residential solar energy system saves homeowners from $20,000 to $40,000 over the life of the solar panels.

What Costs Does the Federal Solar Credit Apply?

The solar tax credit applies to both the cost of equipment, the cost of installation, and even the sales tax on the project can be included in figuring the rebate. There is no maximum for this credit. (However, if you finance the system, you can't include the cost associated with the loan or the interest.)

How Do I Claim the Federal Tax Credit for Solar Panel Installation?

The federal solar tax credit is easy to claim. You simply complete IRS Form 5695 and submit it with your 2021 tax return. The amount of the credit will be deducted from your tax liability. You don't have to itemize your deductions in order to claim the solar credit; it is a separate deduction. If your credit exceeds your tax liability for the year, you can carry over the difference to help offset your tax liability on your next tax return.

You will need to upload the following items during the online application process :

  • Net Metering Agreement
  • Invoice
  • Schematic
  • Our Solar License Number

Solar Sales Tax Incentive in Colorado

Colorado is one of many states in which a variety of incentives are available to make going solar affordable for most homeowners. As part of that effort, Colorado provides a state sales tax exemption (applicable to Sales and Use taxes) for homeowners’ purchases of solar panels and other solar energy system equipment. This sizeable upfront tax exemption effectively reduces the solar panel cost.

About the Colorado Property Tax Exemption

In addition to the Federal Solar Tax Credit, the State of Colorado offers a Property Tax Exemption for Residential Renewable Energy Equipment. This means that solar energy equipment (such as the PV system) is exempt from property tax. This means that you don't have to pay higher taxes when you improve your home with solar. (This applies only to the solar equipment, not to the associated real estate.) While there is no statewide tax credit for solar energy installations in Colorado, many cities, towns, and municipalities in the state have their own tax credit programs. 

Other Solar Rebates and Colorado Solar Tax Incentives

There is not a state-sponsored tax credit for solar panels in Colorado, but there are various rebates and solar incentive programs available. Regional utility companies and local city and county governments offer opportunities that make investing in sustainable energy even more affordable. 

Net Metering in Colorado

Your local electric company will track the amount of solar energy your home system produces beyond the amount you use. The utility company will purchase the excess amount from your system for use on the public grid and credit back to you the value of the power it draws from your equipment. Net metering is essential to the success of a state-wide integrated solar utility. Homeowners who produce enough excess energy can actually profit from going solar — getting paid monthly or annually by the electric company.

Colorado Utility Company Rebates

Colorado’s electric companies are required to adhere to the state’s renewable energy guidelines. So, they are motivated to help you obtain solar panels. Of course, the huge solar rebates over the past two decades have mostly expired throughout the United States, including in Colorado. However, the reduced solar purchase prices, remaining federal and state tax incentives, some municipal assistance programs, and utility company incentives have brought the total solar investment cost down to costs that are similar to those when the bigger rebates were in effect.

Xcel Electric Solar Home Performance Incentive

If you are an Xcel Colorado utility company customer, register for the provider’s Solar Rewards program. It pays you for the excess amount of kWh your solar panels generate. You’ll have a contract under which your electric company will pay you a rate of $.07/kWh (an excellent rate) for your solar energy certificates through the first 10 years of a 20-year agreement. That means that for the average 6kW solar energy system, you can earn around $700 per year, which is about $6,500 total for those first 10 years.

Solar Low-Income Grant for Homeowners in Boulder

Some cities have unique cost-effective public solar cooperatives or other appealing initiatives to provide additional incentives for their residents to go solar. For example, the city of Boulder, CO has a program that provides solar grants of up to 50% to homeowners with annual incomes under $82,000 for a family of four. Families can get up to 50% of their total solar equipment purchase and installation cost after other rebates are deducted.

Keep in mind that solar rebates and other incentives offered by utility companies, local governments, solar energy cooperatives, or other sources are subject to change or be discontinued at any time.

Some Colorado energy companies offer additional incentives to homeowners for installing solar panels for home use. Utility customers in Fort Collins, Colorado Springs, and Boulder, among others, can take advantage of such programs. Incentives range from flat-rate cash incentives for a Solar PV installation to per watt incentives for the energy that your new PV system generates.

While installing a solar energy system can be an investment, there are many programs that can offset the cost if you have your system installed by the end of 2021.

Get a Free Solar Panel Cost Analysis from Solarise Today

Solarise Solar, located in Colorado Springs, Colorado can help you get solar panels at the best possible. Colorado homeowners know and trust us to help them design their systems, order the equipment that makes the most sense for their property, and install the system. We are happy to help you make sense of all of the different tax incentive programs and rebates and make sure that you get all of the credits you qualify for.

You pay $0 down payment, so there is no upfront cost to purchase and install solar panels! Solarise low-interest financing keeps the total purchase price of your solar energy system lower.

The Solarise 30-Year Solar Panel Warranty gives you peace of mind throughout the life of your solar energy system equipment.

We take care of all permits, applications, and other paperwork necessary to obtain the required legal approvals, activate your net metering system with the local electric company, etc.

Contact Solarise for Your Solar Installation and Startup

A Solarise solar expert will help you calculate your net cost of converting to solar energy for your home. Your solar installation specialists will set up your solar panels and other equipment in a system configured to meet your needs for your property and for the budget you set.

For information about solar panels, call Solarise Solar at (719) 315-3034, or contact us here on our website to schedule your free home Energy Analysis and estimate.

 *The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the IRS.

What Our Solar Power Install Clients in Colorado are Saying

Solar Panels in Colorado Springs - Customer Testimonials

Solarise Solar is great! Monique was very informative as to what the company had to offer.
Angel Martin
Angel Martin
14:25 28 Sep 23
So happy with the company! The admin Mo has went above and beyond ensuring every concern I had was met. Will definitely refer to friends and family!
Marissa Pettway
Marissa Pettway
17:57 27 Sep 23
The service provided by these folk has been exceptional.Things take a bit to get moving but once they start it’s fast and well done.Monique is really great to work with for any questions you have. She’s very knowledgeable is goes out of her way to keep you informed.
salida cyclones
salida cyclones
16:36 23 Sep 23
Monique was great in explaining the solarise process and telling me of the benefits on getting solar now instead of waiting!! When we are ready we will be contacting Monique!! Thanks
Robert Strange
Robert Strange
23:28 22 Sep 23
Beautiful job, well done! I was always scared of Solar panels because I had a fear of what money would have to come out of my pocket, but when it was explained to me, I understood that I wouldn’t have to pay a dime for installation, and it would be an immense benefit as I wouldn’t have to worry about Black Forest and the charges it brings with per/KWH. I was scared, believe me. I had no knowledge and I thought they would take advantage of it, but they didn’t. They secured my worries and gave a thorough explanation on how Solar works. Thank God, because I won’t have to spend more than I need to, especially next year. The gentlemen that came to install the panels were so kind, attentive and extremely professional! They were fun and they were very awesome! They had the job done in three hours!!! Which is pretty good! I used that time for yard work! They loved my dogs and respected my space. Thanks to Adam for following up after the work was completed. Thank you, SolarRise for an excellent job that was so perfectly done. You have a devoted member(s). Yay for solar!
De’Ana Darlas
De’Ana Darlas
20:04 21 Sep 23
Thanks to Monique Burdine for providing great information about Solarise Solar. It’s clear Solarise Solar is my first choice in Solar!
josh
josh
15:35 21 Sep 23
I ran into Monique and we started talking about solar. She told me about all the benefits of going solar and the benefits of going with solarise solar. They customize each system to each household needs. Which basically make sure that I’m getting what I need, as well as the possibility of extra. I have been thinking about solar and when I am ready to make the move I will definitely give them a call. Great customer service.
Paul
Paul
23:31 20 Sep 23
Overall great experience working with Solarise. Customer service was great!
KAYTEE LUCHERINI
KAYTEE LUCHERINI
16:00 18 Sep 23
We had Solarise install our roof panels down in Pueblo in March of 2022, and the process went very smoothly, with only two weeks between our first meeting and install! The actual installation took less than two hours thanks to their efficient crew. We have had no problems with the system whatsoever, and we are loving the savings reflected on our electricity bill. 🙌 They sent out their quality control specialist Monique in March 2023 just to check in and see how our experience has been, and she was very pleasant and, like all of their team, professional and easy to work with. I would recommend this company to anyone seeking solar in Southern Colorado!
Jasmine
Jasmine
22:43 30 Aug 23
Monique Burdine Quality Control and Coordinator is fantastic to work with!She is definitely going to be our go to for this company. Not only did she help my husband and I learn how to use the Enphase app for monitoring our system. She happily gave us a check that our sales rep had promised to and never followed through with for whatever personal reasons he had. We are very appreciative that she helped make this happen because we had felt as though it was a lost cause and that we had been deceived. However, being in direct contact with one of the owners Jared was quick to remedy this issue. He clearly cared about how this company is being represented and about customer satisfaction. Something many companies these days are lacking. In addition, Monique reviewed our current solar intake and saw that due to a trees overgrowth in our neighbors yard we are only getting half the absorption as was predicted and guaranteed. Monique immediately started addressing this issue. She reached out to get further diagnostics and started making arrangements to add on more panels and possibly relocate the current ones to ensure we get the best possible power intake. Monique was fantastic to work with, thorough and very friendly! While we did have a good presentation from our original sales rep he didn't follow through with what was agreed upon when we decided to contract ourselves into agreement what's Monique went above and beyond to show us she and the owners do care about their customers. We are going to make Monique our go to person for everything from here in out as well as our referral person. I wish every company had someone like you Monique. She is simply Fantastic to work with and very efficient at her job!Thank you again for taking such good care of us ☺️
Amber Hilkey
Amber Hilkey
22:15 26 Jul 23
Very helpful, and professional. Cindy made things clear and understandable!
Chris Sampang
Chris Sampang
22:12 25 Jul 23
Easy folks to work with, quick install. The sales rep I worked with was very knowledgeable and was available for questions at any point. Process does take some time to go live with inspections but that is the state/county + electric company.
Michael Harrell
Michael Harrell
23:51 19 Jul 23
Service was great. Monique came and made sure everything was working well and answered all our questions! She also showed us how to use the app.
Kelly Bahr
Kelly Bahr
22:40 17 Jul 23
The entire process from sales to live was so easy I literally had to do NOTHING but review and sign documents. They worked with the inspectors, the financing, the energy company... all of it. I cannot stress how little impact this was on me, other than the benefit of lowering/fixing my energy costs every month. These people are definitely the ones to trust for solar, and my quality control rep Monique is the nicest, most responsive person I could hope for. Best decision ever.
Donna Leigh
Donna Leigh
16:13 14 Jul 23
Monique is very professional and informed us of several areas concerning solar and the way things are done. She did an excellent job. She is very personable and a great asset to your company.
Lnda Hft-Mllr
Lnda Hft-Mllr
15:15 13 Jul 23
Monique burdine was a great coordinator, coming from man on experience in service. I believe every company's got have good female on board to level out things.
Cary Miller
Cary Miller
14:16 13 Jul 23
So far we have been impressed with our solar system installed by Solarise. This was not a pushy sales job by the company, providing a better price than 3 other local companies for essentially the same products and sized system. Our installation was delayed but that was due to Colorado Springs Utilities backlog with permits and applications. We had a system installed in Oct which was designed to produce a minimum of 3.9 MWh and with 3.5 months to go we already have 3.5 MWh produced and with the long hot summer days ahead of us we are confident they system will produce more than the minimum designed! Monique came out a few weeks ago and reviewed our system operation and performance with us and talked through a couple of questions we had for her. Would definitely recommend this company to anyone looking to go Solar.
Joel Swanson
Joel Swanson
21:41 01 Jul 23
A big shout out to Monique and the entire staff. The installation was spot on. Any questions were answered very timely by Monique.
DJM M
DJM M
19:55 12 Jun 23
Monique has provided good service, very attentive and aware of job and product. Would recommend Solarise for your solar needs. Very informative and helpful with the monitoring and product itself.
Joseph Jackson
Joseph Jackson
19:58 05 Jun 23
I have had a great experience with Solarise. Their personnel are knowledgeable and personable.
Brandan (Bseeker)
Brandan (Bseeker)
19:07 20 May 23
I was very satisfied with the instillation process of my solar system.Monique was very nice and helpful in setting up the Enphase Energy program on my computer, I appreciate her coming and helping me.
Louise Baumgart
Louise Baumgart
19:43 18 May 23
We are very pleased with our solar and are glad we went with Solarise! Everyone we ever dealt with was professional and polite. Monique, Quality Control Coordinator, came out—over a year AFTER our install—just to make sure everything was working properly, to help us get on the monitoring app, and also helped us with the information needed for getting our federal tax credit. 👍
Montaine Bronner
Montaine Bronner
19:19 31 Mar 23
Monique was very helpful and easy to understand. Thank you so much!
Christy Gookin
Christy Gookin
20:43 25 Mar 23
Monique is awesome, knowledgeable, professional, and fun. Our meet with her was very enjoyable.Marc is a very nice gentleman. He did everything he told us he would do. He had good follow up and great articulation.
Amy Whiting
Amy Whiting
18:55 22 Mar 23
Thank you!!!!
Tami Grisenti
Tami Grisenti
18:59 07 Mar 23
Jordan was very helpful and very professional...
Mike Montgomery
Mike Montgomery
19:40 03 Mar 23
Panels are working great, very professional and friendly people, Scott made the project go very smooth and in a timely matter.
Lauro Esquivel
Lauro Esquivel
20:10 01 Mar 23
Overall this was a very positive experience. Each person who was involved in my project was knowledgeable and professional. The company has kept every promise they made. No, your project is not going to be completed overnight. It's a process. Sometimes you are stuck waiting on the county inspections or the utility company to switch a meter. Each time I had a question or needed information I was able to call the office and get an answer. I don't remember everyone's name but Noa, Corrine, Adam, and Marc were very helpful (well, really, everyone was). I also completed my first referral and the referral program and bonuses are real! Lol I have been recommending this company to others because they followed through and were honest in their sales pitch. Kudos.
Crystal Wright
Crystal Wright
00:32 01 Mar 23
The Solarise Solar team was courteous, professional and efficient. They were clear with me during the entire process from the initial call through the completion of installation and startup of the system. I received a follow up visit from Jordan after my system had been running for a couple months and she assisted me with installing and adding my system to the mobile app and addressed all of my questions regarding my system. I would highly recommend Solarise and will gladly do business with them if any future opportunities arise.
Ken W
Ken W
20:26 27 Feb 23
Moonie from Solarise is a very knowledgeable woman. She is friendly and dedicated to her profession. It was a pleasure to visit with her.
Kris Ray
Kris Ray
18:25 17 Feb 23
They were great to work with and very responsive to all our needs.Would recommend this company.
Megan Kalthoff
Megan Kalthoff
19:49 07 Feb 23
The staff has always been exceptionally helpfulMonique Burdine was great today, answering all my questions and looking into how my system is doing. It was a pleasure to meet her and work with her
Neema Caughran
Neema Caughran
19:11 06 Feb 23
The Quality Control Coordinator does an amazing job plus professionally friendly.
Jacob Cochran
Jacob Cochran
15:58 28 Jan 23
Solarise is definitely a great local option for solar. The paperwork process for the loan was quick and easy to understand. Our install took about the timeframe they had quoted (4 months from start to finish). We had a few paperwork mishaps, but every time I called everything was handled timely and professionally. Monique really gave the process a personal touch that made the experience a 5 star rating. She really helped everything come along and I am so glad I was able to work with her. Little to no electricity bill is also a huge plus! Our system works great and we have not had any issues for the 6 months that system has been been connected to the power grid. Thank you Solarise for helping us go solar!
Adrienna Rodasta
Adrienna Rodasta
18:51 25 Jan 23
Monique did my one year follow up recently and was very professional, personable, and a really nice person. She showed me things on the app that I hadn't actually looked at and I'm glad she did. It was an informative follow up. Thank you Monique!! :)
Chris Baughman
Chris Baughman
01:08 16 Jan 23
Just spoke with Monique about the solar system I have. I love it and I was pleased and surprised to get a follow up! Great Job!
Bev Moe
Bev Moe
21:07 11 Jan 23
Jordan was very helpful. Very knowledgeable about solar info..
tom wolf
tom wolf
20:11 13 Dec 22
Solar Rise is they way to go! Once Jordan took over as our point of contact for our solar project everything seemed to be put in the fast lane. Jordan’s customer service is beyond professional. She gave me piece of mind by calling and checking in with me on a weekly basis to keep me updated on how the solar installation was going. Overall I would and will recommend this solar company to everyone.
Victor
Victor
19:38 09 Dec 22
From start to finish the experience was great. Knowledge and patience from the entire crew. Every question was answered. Easy to contact. Solar panel installation was flawless.
Chevelle Garnett
Chevelle Garnett
00:32 01 Dec 20
It's nice to have a good experience with a contractor. Thanks Solarise!
Emily Ellsworth
Emily Ellsworth
04:26 17 Dec 19

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