Federal Tax Credit: The federal government offers a tax credit of 26% of the cost of a solar panel system for both residential and commercial properties. This credit will begin to decrease to 22% for systems installed by the end of 2022 and to 0% for residential and 10% for commercial systems installed by the end of 2023.

State Tax Credit: Colorado offers a state tax credit for residential solar installations equal to 5% of the installed cost, up to a maximum of $1,000. To be eligible for the credit, the system must be at least 1 kilowatt (kW) in capacity and must be installed on a primary residence.

Net Metering: Colorado offers net metering, which allows homeowners to receive credit for excess electricity generated by their solar panels. This means that if your solar panels produce more energy than your home uses, the excess energy is sent back to the grid, and you receive a credit on your utility bill.

Property Tax Exemption: In Colorado, the value of a solar panel system is not included in the calculation of property taxes. This means that if you install solar panels on your home, you will not see an increase in your property taxes as a result.

Grants and Rebates: The Colorado Energy Office offers grants and rebates for solar installations. The ReCharge Colorado program provides grants of up to $5,000 for residential solar installations. The Solar Benefits Colorado program provides rebates of up to $1,000 for residential solar installations.

Solar Rights: Colorado has a law that protects homeowners’ rights to install solar panels on their property. Homeowners’ associations (HOAs) are not allowed to prohibit the installation of solar panels, but they can regulate their appearance and placement.

Community Solar: If you are unable to install solar panels on your property, you may be interested in community solar. This program allows you to purchase solar energy from a shared solar array located offsite.