Colorado New City Hero

Colorado Solar Incentives

Discover the Perks of Switching to Solar and Storage with Sunrun


Colorado is one of the sunniest states in the nation.1


Colorado’s solar price drop over the last five years.2


State electricity generation that will come from renewable energy sources by 2040.3

There are an average of 245 sunny days per year in Colorado.4 Harnessing all of this sunshine to power their homes in a cleaner, safer, and more affordable way is just one of the reasons why Coloradans are going solar. Colorado also offers excellent solar incentives to help you start your solar journey for less.

Sunrun is the leading residential solar and energy storage company in the U.S.5 We work so you can gain bill control, protect your home from outages, and reduce your carbon emissions while enjoying Colorado’s federal tax credit, tax exemptions, and solar rebate programs.

Here Are the Incentives You Can Bring Home with a Solar Installation in Colorado*



Federal Solar Investment Tax Credit (ITC)**

The 26% federal tax credit is available for purchased home solar systems installed by December 31, 2022.6

Property Tax Exemption for Residential Renewable Energy Equipment

Property tax exemption that excludes the added value of a solar panel system in Colorado from the home’s value for tax purposes.7

Sales and Use Tax Exemption for Renewable Energy Equipment

2.9% to 8.3% home solar system state sales tax exemption.8,9

Local Utility Company Incentives and Solar Rebates

Cash incentives in the purchase of new rooftop solar panels. (Varies by utility and system size.)10

Xcel Energy Solar Renewable Energy Credits (SRECs)

Compensation per kilowatt-hour (kWh) produced by the system.11

Find out if You Qualify for Colorado Solar Incentives

Learn the Details of Colorado Solar Incentives

Buy and install new solar panels in Colorado in 2021, with or without battery storage, and qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.6

Approximate average-sized 5-kilowatt (kW) system cost in Colorado: $12,720 Approximate system cost in Colorado after the 26% ITC in 2021: $9,41312

Purchase new solar panels in Colorado and your property taxes won’t go up.7 Installing a solar energy system could also help you build home value.

Add a new rooftop solar panel system to your home in Colorado, and you won’t pay any sales tax.8

The exemption is for 100% of a renewable energy system’s sales tax, like solar and wind. Depending on which Colorado city you live in, this can save you 2.9% to 8.3% right off the bat.9

Get a cash incentive when you purchase and install a new solar array in your home. Varies by utility company, solar photovoltaic (PV) system size, location, and personal income.10

If you’re an Xcel Energy customer, you can earn SRECs, also known as Renewable Energy Credits (RECs), for every kWh of Colorado solar energy your system generates. This is thanks to the company’s Solar Rewards program.11

Colorado Is a Great Place for Solar

Make the most out of your state’s incentive programs and solar tax credits with Sunrun. Our home solar plans—along with battery storage in Colorado—start at $0 down. On top of that, if you’re a customer of Black Hills Energy, Xcel Energy, or other local utilities, you may earn bill credits for the excess solar energy you produce through their net energy metering (NEM) programs.13,14 With net metering in Colorado, you can take control over electricity bills to potentially increase your energy savings.

When you team up with a Colorado solar company like Sunrun, you can create and store your own clean energy and get the peace of mind you deserve. Sunrun is one of the best solar installers in Colorado. See if our solar solutions are a good fit for your energy needs. Use our Product Selector or request a free quote today to get one-on-one service from our expert Solar Advisors.

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*Customer’s ability to monetize rebates, incentives, and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type, and whether a customer purchases or leases a home solar system from Sunrun.

**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.