ColoradoSolar Panel Costs & Savings
Colorado averages 5.5 hrs of peak sun per day with an average payback period of 8.2 years. Homeowners can save $34,800 over 20 years.
Peak Sun Hours
5.5 hrs
per day
6kW System Cost
$18,300
before incentives
Payback Period
8.2 yrs
average
20-Year Savings
$34,800
estimated
Solar Cost Breakdown in Colorado
| Item | Amount |
|---|---|
| 6kW System Cost ($3.05/W) | $18,300 |
| Federal Tax Credit (30%) | -$5,490 |
| State Rebate | -$2,000 |
| Net Cost | $10,810 |
Net Metering
Full Net Metering
Electricity Rate
15.56¢/kWh
Avg Monthly Bill
$115/mo
Solar Incentives in Colorado
Xcel Energy Solar*Rewards
Xcel Energy customers may receive rebates for installing residential solar systems.
Federal Solar Investment Tax Credit (ITC)
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.
Colorado Sales Tax Exemption
Solar energy equipment is exempt from Colorado state sales tax.
Solar Potential by ZIP Code in Colorado
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 81101 | Alamosa | 5.8 hrs | $1,624 | 7.9 yrs |
| 81001 | Pueblo | 5.7 hrs | $1,596 | 8 yrs |
| 81501 | Grand Junction | 5.7 hrs | $1,596 | 8 yrs |
| 80901 | Colorado Springs | 5.6 hrs | $1,568 | 8.2 yrs |
| 81301 | Durango | 5.6 hrs | $1,568 | 8.2 yrs |
| 80001 | Arvada | 5.5 hrs | $1,540 | 8.3 yrs |
| 80014 | Aurora | 5.5 hrs | $1,540 | 8.3 yrs |
| 80031 | Westminster | 5.5 hrs | $1,540 | 8.3 yrs |
| 80401 | Golden | 5.5 hrs | $1,540 | 8.3 yrs |
| 80202 | Denver | 5.4 hrs | $1,512 | 8.5 yrs |
| 80301 | Boulder | 5.4 hrs | $1,512 | 8.5 yrs |
| 80501 | Longmont | 5.4 hrs | $1,512 | 8.5 yrs |
| 80525 | Fort Collins | 5.3 hrs | $1,484 | 8.6 yrs |
Compare With Other States
More Data for Colorado
Frequently Asked Questions
How much do solar panels cost in Colorado?
A typical 6kW solar system in Colorado costs approximately $18,300 before incentives. After the 30% federal tax credit ($5,490), the net cost is approximately $10,810.
How long does solar take to pay for itself in Colorado?
The average solar payback period in Colorado is 8.2 years, faster than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does Colorado have net metering?
Colorado has full net metering. Homeowners receive full retail rate credits for excess solar energy sent to the grid.
How much sun does Colorado get for solar?
Colorado averages 5.5 peak sun hours per day, which is 1.0 hours above the national average. A 6kW system produces approximately 12,045 kWh per year.
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Data verified March 2026 · Source: NREL, DSIRE, EIA