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Colorado has near-perfect conditions for solar: bright, clear skies, without scorching temperatures (the efficiency of most PV panels actually goes down in extreme heat). That's not all. When it comes to promoting the use of solar power and other forms of renewable energy, Colorado is one of the most ambitious states in the country.

In November 2004, voters confirmed a hallmark initiative to establish a statewide renewable energy portfolio standard (RPS), requiring that by 2015 at least 0.4 percent of all electricity come from solar energy. While numerous states have subsequently set up RPSs, Colorado was the first in the country to do so. And ever since, its lawmakers have consistently advanced pro-renewables legislation. If all goes according to state mandates, investor-owned utilities will, by 2020, be producing 20 percent of all their electricity from renewable sources, like solar and wind.

Keep reading for information on Colorado's rebate programs, its rules on net metering and interconnection, and other statewide initiatives aimed at encouraging residents and businesses to invest in alternative energy systems.

Also, for information on programs sponsored by your city, town or county, be sure to review our Colorado municipal page.

Utility-sponsored rebates

To meet RPS requirements, Colorado's investor-owned utilties must figure out a way to boost production of renewable power. One of the ways to do so is by offering direct cash rebates to residents and businesses that install solar energy systems. Currently, six Colorado-based utilities offer rebates for solar and other renewable energy projects. Among these, Excel Energy is the largest investor-owned utility operating in the state, accounting for about 85 percent of Colorado's PV market.

NOTE: At the end of October 2008, Excel Energy announced it would be scaling back the amount of funding available for rebates and solar-onsite renewable energy credits (SO-REC). The rebate will drop to $3.50/watt from $4.50/watt in 2009. In other words, you'll receive less rebate money to help cover the up-front costs of a solar PV system. BUT... note that Excel's decision to cut rebates came on the hee

Xcel Energy: Solar*Rewards Program

Aquila: On-Site Solar PV Rebate Program
Colorado Springs Utilities: Renewable Energy Rebate Program
Holy Cross Energy: WE CARE Rebates
La Plata Electric Association: Renewable Generation Rebate Program
United Power: Energy Efficiency Credits Program


Click here for more information.

Local Property Tax Exemption for Renewable Energy Systems

Eligible:    
Solar thermal electric, photovoltaics (along with biomass and geothermal electric) for residential, commercial, residential and agricultural property owners

Amount:
Varies, depending on local arrangement        

Overview:
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.
 

Local Option Sales Tax Exemption for Renewable Energy Systems

Eligible:    
Solar thermal electric, photovoltaics (along with biomass and geothermal electric) for residential and commercial property owners

Other info:          
In April 2007, Colorado authorized counties and municipalities to grant sales tax rebates for residents who install renewable-energy systems. For more information, visit the DSIRE website.

 
Boulder Solar Sales and Use Tax Rebate

Eligible:    
Solar water heat, photovoltaics, solar pool heating for commercial and residential sectors

Amount:          
35% of unrestricted solar energy sales tax and use tax revenue

Overview: 
In 2006, Boulder set up a solar sales and use tax rebate for PV and solar water heat systems. Under the program, owners can receive a rebate, which is funded by the tax revenues collected from solar-energy sales.

Colorado Solar Grants and Loans

Fort Collins Utilities ZILCH (Zero Interest Loans for Conservation Help)

Eligible:    
Solar water heat, solar space heat for residential applications in Fort Collins

Amount:
Interest-free loans range from $500 to $2,300 and are typically offered with a 24 to 60 month payback period

Other info:
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.


Gunnison County Electric: Renewable Energy Resource Plan

Eligible:    
Photovoltaics, wind and other renewable-energy projects for the commercial and residential sector in Gunnison County

Amount:
Low-interest loans, up to $25,000 for 10 years

Other info:
Loans may not be applied to cover the cost of batteries and are limited to systems smaller than 10 kilowatts

Click here for more information.


Aspen's Solar Power Pioneer Loan Program

Eligible:    
Solar water heat and photovoltaics for residential applications in Aspen

Amount:
Zero-interest loans, of a variable amount, for a typical term of five years

Other info:
Offered by The Community Office for Resource Efficiency (CORE). To be eligible, you must be a full-time resident of the Roaring Fork Valley. Participation in CORE’s rebate program in conjunction with their grant program is prohibited.

Click here for more information.

Aspen Solar Pioneer Rebate Program

Eligible:    
Solar water heat, photovoltaics for residential applications in Aspen

Amount:
Up to $2,000 for solar hot water; $2.00 per Watt of installed PV, with a maximum of incentive of $6,000  

Other info:
Offered by The Community Office for Resource Efficiency (CORE). To be eligible, you must be a full-time resident of the Roaring Fork Valley. Participation in CORE’s rebate program in conjunction with their loan program is prohibited.

Colorado   Rebates   Page 3