Renewable Energy Financial Incentives
Renewable Energy Financial Incentives
Solar energy is a great choice in Colorado due to the sunny weather. This page will go through the federal and state incentives available.
Residential Incentives
Federal Incentives
The Federal Solar Investment Tax Credit is a tax incentive designed to encourage the adoption of solar energy by reducing tax liability. With this credit, individuals can claim 30% of the total cost of solar equipment, including labor, materials and installation expenses.
Residents are required to own the solar panels, leasing is not eligible. If you purchased an interest in an off-site community solar project, this is also eligible.
Learn more about this incentive.
State of Colorado Incentives
Net Metering: Colorado has a generous net metering policy. Net metering allows you to connect your solar panels to a public-utility power grid. If you produce any excess energy that you don’t need right away, you can sell that energy back to the grid for credits that can be used toward your future energy bills.
Cash Rebates:
- EnergySmart Colorado: Depending on your location, you could be eligible for a rebate of anywhere from $400 to $2,500.
- Holy Cross Energy: this fantastic per-kilowatt (kW) rebate can equate to savings of as much as $3,000.
Weatherization Assistance Program: The Weatherization Assistance Program (WAP) is a state-level initiative to improve the energy efficiency of low-income households. The program provides eligible residents with various weatherization services like roof repairs and insulation, plus energy efficiency upgrades like solar systems to reduce energy consumption, lower utility bills and increase overall home comfort.
Learn more about income eligibility.
Colorado Solar Property Tax Exemption
- Sales and Use Tax Exemption for Renewable Energy Equipment prevents you from having to pay sales tax when you purchase your solar system.
- Property Tax Exemption for Residential Renewable Energy Equipment means you won’t have to pay property tax on the increased value of your house as a result of the installation of your solar system.
Business and Tax-Except Organization Incentives
State of Colorado Incentives
Colorado does not have a state tax incentive for renewable energy but businesses can take advantage of net metering.
Utility Incentives
There are several renewable energy options to choose from, whether you are interested in on-site solar or purchasing renewable energy through a subscription. On-site solar may be right for you if you own your home have already made energy efficient upgrades and your roof is not due for replacement soon. Subscription options may be right for you if you are a renter, or ownyour home but are not interested in investing in rooftop solar at this time, but still want to power your home renewably.
Subscription Renewable Programs
- Xcel Energy Renewable*Connect Flex
Renewable*Connect Flex is an easy way to subscribe for up to 100% clean energy. You can also keep Renewable Energy Credits (REC) and have the potential to save on energy bills. Renewable*Connect Flex subscriptions are available for Colorado Xcel Energy electric customers in 100 kilowatt-hour (kWh) blocks–or 100% of your energy usage–for a small additional premium with no minimum subscription term. - Xcel Energy Solar*Rewards Community
Solar* Rewards Community gives you the opportunity to subscribe to a nearby, third-party community solar garden. Once subscribed, customers will begin receiving credits on their monthly utility bill for the solar energy that their subscription contributes to the Xcel Energy grid. To qualify, you must be a Colorado Xcel Energy electric customer, and the subscription size must not be more than 40% of the solar gardens’ system size.
Onsite Renewable Programs
- Net Energy Metering
Install on-site solar and offset your energy use by selling back the excess electricity generated from your solar system to the electrical grid. - Xcel Energy Solar*Rewards
- All solar customers receive Net Energy Metering (NEM) benefits from a system installed on their premise. When the solar produces more energy than what the home consumes, the extra energy is added to the grid. Any excess energy is held in a customer’s virtual solar bank for use in future months when solar production may be lower than the home’s energy consumption. To qualify, you must be an Xcel Energy residential or business electricity customer with a valid account number.
Xcel Energy highly recommends that construction of your system SHOULD NOT commence until your application receives full approval from the Xcel Energy engineering team and all final agreements are fully signed.
- All solar customers receive Net Energy Metering (NEM) benefits from a system installed on their premise. When the solar produces more energy than what the home consumes, the extra energy is added to the grid. Any excess energy is held in a customer’s virtual solar bank for use in future months when solar production may be lower than the home’s energy consumption. To qualify, you must be an Xcel Energy residential or business electricity customer with a valid account number.