Colorado Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Colorado costs $44,137. After the 30% federal tax credit: $30,896. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Colorado State Incentives
Community Solar Gardens
policyCredits on electricity bill
Colorado allows community solar gardens, enabling renters and those with unsuitable roofs to subscribe to shared solar installations.
Net Metering
Net MeteringCredits at retail rate for Xcel customers
Net metering available for Xcel Energy customers for systems up to 120% of annual usage.
Tax Exemptions
property tax Exemption
Solar installations are exempt from property tax increases under Colorado's renewable energy property tax exemption.
sales tax Exemption
Solar energy equipment is exempt from Colorado state sales tax. Local tax exemptions vary by municipality.
Utility Programs
Xcel Energy
- Net metering
- Solar*Rewards
- Community solar
Black Hills Energy
- Net metering
- Renewable energy programs
Holy Cross Energy
- Net metering
- Solar rebates
Highlights & Drawbacks
Highlights
- ✓Excellent solar resource with 300+ days of sunshine
- ✓Community solar garden options for all
- ✓Property and sales tax exemptions
- ✓Strong net metering through Xcel
Drawbacks
- !No state solar tax credit
- !Moderate electricity rates
- !Some local sales taxes still apply
- !Hail risk in eastern plains
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.