In addition to a 30-percent renewable energy tax credit available from the federal government, Colorado homeowners can take advantage of a number of solar incentives available from their state (and in some cases local) government. As you'll see below, many of the CO rebates and financial incentives are made available through electricity utilities, like Xcel Energy and Black Hills. The programs outlined below can significantly reduce total installed costs of solar photovoltaic (PV) panels or a solar water heating system. The list does not include comprehensive details on CO solar loan programs.

When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your home energy needs, we'll work with our solar panel installation partners serving Colorado to get you a free site visit and quote. We're here to get you quality service and a great price on your solar energy system. So what are you waiting for? Be the next person to get solar in Colorado!

Are you a Colorado business owner? Check out our Colorado commercial solar energy incentive page.

Utility-sponsored rebates

To meet state-mandated renewable energy requirements, Colorado's investor-owned utilities (IOUs) must figure out a way to boost production of renewable power. One of the ways to do so is by offering payments to residents (and businesses) who install on-site solar PV systems. Colorado's two big IOUs -- Xcel Energy and Black Hill Energy -- offer the following programs:

Xcel Energy Solar*Rewards

Small systems (0.5 kW to 10 kW DC) can receive a rebate of $2.00/watt DC, plus an REC payment of $1.50/watt DC
Medium systems (10.1 kW to 100 kW DC) receive $2.00/watt DC, plus a monthly REC payment of $115 per megawatt-hour (MWh) of electricity produced

The Black Hills On-Site Solar Power Program

PV systems up to 10 kW in size are eligible for a rebate of $2.00/watt DC, plus an REC payment of $2.50/watt DC.
PV systems from 10kW to 100 kW in size may receive a rebate of $2.00/watt DC, plus an REC payment of $114 per MWh produced over the course of the year. REC payments are made annually and are subject to adjustment.

Non-investor-owned utility rebate programs

For those of you who live beyond the service territory of Xcel and Black Hills, fear not: there may well be an alternative solar rebate program available in your area. Through local partnerships, and with the help of the Colorado Solar Energy Industries Associations (COSEIA), the Governor's Energy Office (GEO) provides matching grant funds to homeowners (and small businesses) who install solar PV and solar hot water systems.

GEO Solar Rebate Program

Depending on local availability, residential solar PV systems may qualify for a rebate worth up to $9,000 -- $4,500 provided by GEO, $4,500 provided by the local partner utility (systems installed by small businesses may receive $15,000)
Solar hot water (SHW) systems may receive up to $3,000 ($1,500 from GEO, $1,500 from local partner organization)

To see if rebates are available in your area, check out this list of local partner organizations, made available by COSEIA.

Miscellaneous/local solar energy incentives

The programs listed above can significantly reduce the cost of a solar energy system. In addition, there are a number of other small, yet helpful, incentives.

Local Property Tax Exemption for Renewable Energy Systems: In April 2007, Colorado authorized counties and municipalities to grant property tax exemptions to residents who install renewable-energy systems. While the details vary from municipality to municipality, the program is designed to enable property owners to install solar and other energy-efficient technologies without increasing their tax liability. To find your municipality online, click here fore more information.

Fort Collins Utilities ZILCH (Zero Interest Loans for Conservation Help) provides interest-free loans range from $500 to $2,300 and are typically offered with a 24 to 60 month payback period. No more than 80% of the projects costs may be covered by the loan, which, in addition to solar systems, may also be applied to finance a variety of projects (including insulation and improving windows and doors). Click here for more information.

The Community Office for Resource Efficiency (CORE) of Aspen, CO:

Aspen Solar Pioneer Rebate Program provides a rebate worth $2.00/watt (up to $6,000) for residential solar PV and up to $2,000 for solar hot water systems
Aspen's Solar Power Pioneer Loan Program: Solar water heat and photovoltaics for residential applications in Aspen may qualify for zero-interest loans, of a variable amount, for a typical term of five years

[Last updated: 4/14/09]

Colorado Residential Solar Incentives Page 2