How much do solar panels cost in Colorado?
Residential solar panel installation can cost anywhere from $10,000 to $30,000 or more, although individual costs vary. Colorado residents pay an average of $20,176 for their systems before claiming the federal tax credit. As a reminder, Jennifer paid $18,000 in gold; Additionally, William paid more than $20,000 for a solar panel in Grand Junction.
The size of your system plays a significant role in the overall costs. Not surprisingly, the smaller your system, the less you pay. The average size of solar arrays in Colorado is 7.5 kilowatts (kW).
Not sure which measurement system you need? First, determine how much electricity you used last year in kilowatt hours (kWh). You can find this information online through your utility bill dashboard. Then divide the annual kWh by 1200 to find the correct system size.
For example, a typical household in Colorado uses 8,448 kWh per year. Using this formula, a typical home would require a 7kW system.
"WHAT'S THE DIFFERENCE? kW versus kW
Average costs by system size in Colorado
| 5kW | 6kW | 7kW | 8kW | 9kW | 10kW | 11kW | |
|---|---|---|---|---|---|---|---|
| After federal tax credits | $9,415 | $11,298 | $13,181 | $15,064 | $16,947 | $18,830 | $20,713 |
| On federal tax credits | $13,450 | $16,140 | $18,830 | $21,520 | $24,210 | $26,900 | $29,590 |
| The size of the house | 2000 square meters | 2200 square meters | 2400 square meters | 2600 square meters | 2800 square meters | 3000 square meters | 3200 square meters |
Source: EcoWatch
Are solar panels worth it in Colorado?
Solar panels can be a good investment in Colorado. The state receives plenty of sunshine, particularly in places like Pueblo, Denver and Alamosa, and solar radiation increases at higher elevations.
Many Colorado solar customers tell us about significant savings on their electric bills. For example, Paul from Colorado Springs said his electric bill is only $14 per month. Brian in Denver now only pays $4.
Colorado receives an average of 5 to 6.5 hours of maximum sunlight per day.
This doesn't work for everyone, especially if many of your utilities currently run on gas. Charnay, who lives in Brighton, says switching to solar power was a mistake because it didn't help reduce his gas bill.
“Instead of a cheaper electric bill, I now have a regular gas bill, a combined electric bill — not a $20 bill as they say,” he said. “It costs about $106 and now it’s Mosaic’s account that you use to purchase the panels.”
If your home is a good candidate for solar panels, making the switch now is a smart way to protect yourself from future energy price increases.
“ NOT CONVINCED YET? Advantages and disadvantages of solar energy
Solar Energy Pricing Factors in Colorado
Going solar is an investment, and like any investment, it's important to know what you're getting into. Many factors affect how much you pay, from equipment to the roof over your head.
Costs for solar systems
You don't just buy solar panels. If you're considering additional energy storage, you'll also need inverters, mounting hardware, and possibly a solar panel. Since all of these things add up, it's important to consider the bigger picture when budgeting. Here are some common equipment costs:
Efficiency of solar modules
Some solar panels convert sunlight into electricity more efficiently than others. This is called solar cell efficiency. Higher efficiency panels cost more, but can save you money in the long run. You should compare the initial cost with the long-term savings.
» COMPARE: The most efficient solar modules
The size of your system
When it comes to the number of panels, what matters most is the size of your system. The larger the system, the more expensive it becomes. The size depends not only on the number of panels, but also on their weight. Your roof must be able to withstand this load, which brings us to the next point.
» POTENTIAL ENERGY PRODUCTION: How many kWh does a solar panel produce?
The condition of your roof
High-quality solar panels can last up to 30 years, so your roof better lasts a long time. Otherwise, you will pay extra to remove the panels, repair or replace the roof, and reinstall the panels. That's a hassle you don't want. Therefore, check the roof to make sure it is ready for your system.
» SHOULD YOU LISTEN? Replace the roof before going out into the sun
How do you pay?
Pre-purchasing solar panels is ideal, but not everyone has the means to do so. The good news is that you can finance your solar power system. Keep in mind that solar loans incur interest, which is added to the total cost.
Leasing or entering into a power purchase agreement (PPA) are options for installing a system with little or no down payment, but you do not own the panels and are not eligible for the federal tax credit for your solar investment.
When considering a solar loan, lease or PPA, always ask:
- Is there a deposit?
- How much do I pay per month?
- Will the monthly payments increase and by how much?
» SOLAR PANELS: Buying vs. renting
Local permits and fees
Don't forget the documents. In most places, a permit is required to install solar panels, but it is not free. You may also have to pay other local fees. Be sure to take these into account in your budget.
Other cost factors
Solar panels require a little maintenance, but that doesn't mean they don't need it. You may need it for a repair, replacement or just a thorough cleaning.
Solar incentives, tax credits and rebates in Colorado
The average ITC in Colorado is $6,053 in 2023.
The federal solar investment tax credit (ITC) is an important factor in reducing solar costs in Colorado. If you install a residential solar system before the end of 2032, you can deduct 30% of the total cost of the system (including equipment, labor, and permits) from your federal taxes. The credit will fall to 26% in 2033 and 22% in 2034.
Colorado offers tax credits, rebates and affordable solar loan programs to make the transition to solar energy easier. For example, residents who install solar panels are exempt from sales and property taxes. There are also many incentives offered by local energy companies.
» DISCOVER: Solar incentives in Colorado
Compare solar panel companies in Colorado
Compare popular solar companies in Colorado below. For more information, check out our guide to finding the best solar companies.
» TIPS: Tips on how to get the best prices on solar panels
frequently asked Questions
How much does solar energy cost in Colorado?
According to the Solar Energy Industries Association, the cost of solar energy in Colorado has fallen 43 percent over the past 10 years.
Can I get free solar panels in Colorado?
There are currently no free solar programs in Colorado. You can lease or take out a PPA with little or no upfront cost. However, none of these are completely free. Solar leases typically require a fixed monthly payment; With a PPA you have to pay per unit of electricity.
» FREE SOLAR PANELS: Are they really free?
How much can I save with solar panels?
If you pay cash, the average solar savings in Colorado over 25 years is $14,479. There is a common misconception that solar panels always completely eliminate your monthly electricity bill. The good news is that people who still have utility bills will pay much less after switching to solar energy than before. According to EnergySage, you could be reimbursed between 81% and 110% of your electricity bill.
How does net metering work in Colorado?
Net metering is essentially a way to make extra money or get bill credits when your solar system produces more energy than you can use.
Any additional electricity you generate in Colorado is converted into a bill credit. For each additional kilowatt-hour (kWh) you produce, you will receive a credit that will eliminate one kWh on your future bill. What about unused credits? At the end of the year, you can donate or redeem it to help low-income families pay their utility bills.
» COMPARE: The best solar monitoring systems
How many solar panels do I need for my home?
The number of solar panels you need depends on how much electricity your home uses. The average monthly energy consumption in Colorado is 704 kWh. An average 2,000 square foot home requires about 19 solar panels.
Can hail damage my solar panels?
Hail can damage solar panels, but that shouldn't stop you from installing them. The costs of repairing any damage that occurs can be covered by your household contents insurance. Additionally, most solar panels are durable and can withstand light hail without damage.
Diploma
Colorado is one of the 25 greenest states. This is due in part to the large solar incentives the state offers and the low cost of solar for residents. Overall, according to the ITC, Coloradans will pay about $14,123 and could save about $14,479 over the next 25 years on a new solar system.
The Cost of Solar Energy: Colorado and Neighboring States
| Acquisition cost* | Value of ITC (30%) | Typical system size | Average price per watt | Recovery phase** | Estimated net savings | |
|---|---|---|---|---|---|---|
| Colorado | $20,176 | 6053 dollars | 7.5kW | $2.69 | 12 years old | $14,479 |
| Utah | $21,440 | 6432 dollars | 8kW | $2.68 | 14 years old | $10,202 |
| New Mexico | $18,760 | $5,628 | 7kW | $2.68 | 12 years old | $15,413 |
| Texas | $30,934 | $9280 | 8.5kW | $2.69 | 13 years old | $21,350 |
| Kansas | $23,310 | $6993 | 9kW | $2.59 | 11 years old | $21,455 |
| Nebraska | $29,716 | $8,915 | 10.5kW | $2.83 | 14 years old | $13,421 |
| Wyoming | $23,130 | $6,939 | 9kW | $2.57 | 13 years old | $14,959 |
| Arizona | $30,015 | 9004 dollars | 11.5kW | $2.61 | 12 years old | $23,891 |
*Before the Federal Solar Investment Tax Credit (CTI); **With full payment in advance
- Sources of the article
- Consumer Affairs editors base their work primarily on government data, industry experts, and original research from other authoritative publications. Specific sources for this article include:
- EcoWatch: “How much do solar panels cost in Colorado?” » Reviewed October 9, 2023.
- EnergySage, “Colorado Solar Panels: Local Pricing and Installation Information.” » Reviewed October 9, 2023.
- Office of Energy Efficiency and Renewable Energy, “Homeowner’s Guide to the Federal Solar Tax Credit.” Reviewed on October 9, 2023.
- Solar Energy Industry Association, Colorado Solar. Reviewed on October 9, 2023.
- DSIRE, “Colorado Solar Programs.” Reviewed on October 9, 2023.
- Denver Post, "McMillin: Colorado's future is solar (maybe not on every roof)." Reviewed October 9, 2023.
