What solar incentives are available in Colorado?

Every Colorado system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, Colorado offers Utility rebates, Sales & use tax exemption, Property tax exemption.

How much is the federal solar tax credit in Colorado?

The federal credit is 30% of the installed system cost. On a typical $21,000 Colorado system that's about $6,300, bringing the net cost to roughly $14,700.

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Solar Incentives in Colorado (2026)

By the HomeCostLens editorial team · Reviewed January 2026 · Source: DSIRE & state programs

~$14,700

Net cost of a typical $21,000 Colorado solar system after the 30% federal tax credit (~$6,300) — before any state or utility incentives below.

Every solar system in Colorado qualifies for the 30% federal Residential Clean Energy Credit, a dollar-for-dollar reduction in your federal taxes worth about $6,300 on a typical system. Colorado layers additional state and utility incentives on top, and its net-metering rules determine how much your panels save once they're running.

Federal tax credit

The federal credit covers 30% of the total installed cost — panels, inverter, labor, permitting, and battery storage included — with no cap. It applies the year your system is placed in service and can carry forward if it exceeds your tax liability. (This is a tax credit, not a refund; consult a tax professional.)

Colorado state & utility incentives

Incentive	What it offers
Utility rebates	Xcel Energy and some municipal utilities offer upfront solar and battery rebates.
Sales & use tax exemption	Solar equipment is exempt from state sales and use tax.
Property tax exemption	The added home value from solar is exempt from property tax.

Net metering in Colorado

Statewide net metering at the full retail rate for most utilities — excess credits roll over month to month.

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Frequently asked questions

What solar incentives are available in Colorado?: Every Colorado system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, Colorado offers Utility rebates, Sales & use tax exemption, Property tax exemption.
How much is the federal solar tax credit in Colorado?: The federal credit is 30% of the installed system cost. On a typical $21,000 Colorado system that's about $6,300, bringing the net cost to roughly $14,700.
Does Colorado have net metering?: Statewide net metering at the full retail rate for most utilities — excess credits roll over month to month.

Incentive programs change often — verify current details on DSIRE and with your utility before deciding.