Colorado Solar Incentives (2026)
Colorado homeowners qualify for the 30% federal solar tax credit and a $2,000 state rebate. Net metering policy: Full Net Metering. Average payback period: 8.2 years.
30%
Federal ITC
None
State Tax Credit
$2,000
State Rebate
Full Net Metering
Net Metering
Federal Solar Incentives (Available in Colorado)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of system cost
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Expires: 2034-12-31
Colorado-Specific Solar Incentives
Xcel Energy Solar*Rewards
Rebate$500-$2,000
Xcel Energy customers may receive rebates for installing residential solar systems.
Colorado Sales Tax Exemption
Tax Credit100% sales tax exempt
Solar energy equipment is exempt from Colorado state sales tax.
Colorado Solar Overview
Peak Sun Hours
5.5 hrs/day
Avg Payback Period
8.2 years
20-Year Savings
$34,800
Electricity Rate
15.56¢/kWh
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Data verified March 2026 · Source: DSIRE, NREL, EIA