Colorado Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 10.1 kW system using the historical observed average cost in Colorado is $44,137. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $2,602.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Colorado State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.