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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

Customer Testimonials for Solarise Solar

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 Zayac
Victor Zayac
19:38 09 Dec 22
Monique is amazing she came out and made sure everything was working properly and that the app was working for us. I love our solar and I highly recommend Solarize ♥️ Also Frederick who sold us our solar was awesome!
Jeri Gomez
Jeri Gomez
06:12 29 Nov 22
Just had great visit with Monique. Was so very helpful, for I'm not very computer savvy! She walked me through on how to set up my Enphase app. Could've talked with her for hours, very, very helpful. Thank you Solarise.
William Spaulding
William Spaulding
21:56 28 Nov 22
Jordan was very helpful and thorough in her post install visit.
Bruce Caldwell
Bruce Caldwell
21:23 22 Nov 22
Our experience has been awesome. Jordan was sweet coming to check up on us! 👍
Dawn Vannoy
Dawn Vannoy
18:44 15 Nov 22
Solarise was very professional and everything was done in a timely manner. I'm very pleased with their service. They are very knowledgeable and always willing to answer my questions.
Clyde Burner
Clyde Burner
18:46 28 Oct 22
Jordan is so knowledgeable, patient and professional! Companies need more reps like her. Janet Payne
Jan Payne
Jan Payne
19:17 18 Oct 22
Everything went perfect and the system is working great. Rosie always answered our questions and did a great job for us!! Monique came and was very helpful on on line tracking for the system
Justin Thornburg
Justin Thornburg
17:28 15 Oct 22
Very friendly staff, knowledgeable. They explain the way the system works and if you have questions they have the answers.
Jim Barnes
Jim Barnes
21:05 11 Oct 22
We recently purchased a home with a Solarise system. They immediately sent me specs for my system via email. Last weekend, Monique drove a 70 mile trip just to make contact with us and give us an orientation with our system and Solarise. What other company does this?Kudos to Solarise and Monique for excellent customer service and support!
Larry Kimsey
Larry Kimsey
15:55 07 Oct 22
As a team most useful. Each member made sure I understood the question asked, each time I call someone is there the answer an get back to me accordingly. Service is great an with the new info on app. I can now see what's going on.Got my vote
Joseph Cooper
Joseph Cooper
20:34 05 Oct 22
Solarise was so easy to work with and our sales rep was really personable when it came to explaining the system and what we could expect for the install. Monique came out for our follow up to ensure our system was working properly and we had access to the app and knew how to see errors if there were any due to weather or non working panels. As with any company, there were minor issues with our install, but everything was addressed and a solution was in place in a timely manner. I would definitely recommend this company to anyone looking to go solar.
Kristina Burdick
Kristina Burdick
18:27 05 Oct 22
Very friendly and I have loved working with them!! Bought panels for multiple homes
Linda Maes
Linda Maes
19:33 30 Sep 22
Had Monique out to check our system. She was very thorough and eager to explain anything we needed to know.
Michele Masse
Michele Masse
17:31 29 Sep 22
Great experience with this company. Ben S. was our sales rep. and he was excellent! Answered all our questions and concerns and had great follow up.
Frank Ortiz
Frank Ortiz
13:43 29 Sep 22
After a little over a year, Monique visited to check on the status of the system and answer any questions I might have. Very polite and accommodating. Definitely recommend the company.
forrest loffer
forrest loffer
18:17 28 Sep 22
Monique fit be in last minute, jumped through some hoops to get my account set up because I called a little early 😂. Had me set u in no time and explained everything clearly. Wonderful service!
Christopher Theodorakis
Christopher Theodorakis
20:15 27 Sep 22
They were really helpful, tax credit credit helps. Installation went smoothly and follow up visit with Monique went well.
Rich Garnett
Rich Garnett
19:13 27 Sep 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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2936 Janitell Rd
Colorado Springs, CO 80906

Phone: (719) 315-3034
 

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