Denver residents considering solar energy have numerous incentives that can significantly reduce the cost of installation and provide long-term financial benefits. At Solar Side Up, we specialize in helping both residential and commercial properties transition to solar energy, taking full advantage of these incentives.
Federal Investment Tax Credit (ITC)
One of the most impactful incentives available is the Federal Investment Tax Credit (ITC). Homeowners and businesses can claim a 30% credit on the cost of their solar power system on their federal income taxes. This credit applies to the entire system, including equipment, labor, and permitting costs. The ITC is set to remain at 30% until 2032, after which it will decrease to 26% in 2033 and 22% in 2034 before expiring in 2035 unless renewed by Congress
State and Local Incentives
Colorado offers additional state and local incentives that further reduce the cost of solar installation:
- State Sales Tax Exemption: Solar equipment in Colorado is exempt from the state’s 2.9% sales tax, which can save you a significant amount upfront
(EnergySage) (EcoWatch) . - Property Tax Exemption: The added value of a solar power system is exempt from property taxes, meaning your property value increases without a corresponding rise in property taxes
(Comparing Solar Companies) (Sunrun) .
Financing Options
For those concerned about the upfront costs, Colorado's Residential Energy Upgrade (RENU) Loan program offers low-interest financing for home energy upgrades, including solar installations. Loans of up to $75,000 are available, with repayment terms up to 20 years
Local Utility Incentives
Several local utilities offer additional incentives:
- Xcel Energy Solar*Rewards Program: This program provides compensation per kilowatt-hour (kWh) produced by your system, which can help offset the cost of your investment over time
(Sunrun) . - Black Hills Energy: Offers $0.03 per kWh for the first 10 years for systems up to 30 kW
(EnergySage) .
Net Metering
Colorado also supports net metering, which allows you to earn credits on your utility bill for excess solar power generated by your system and fed back into the grid. This is particularly beneficial in maximizing the financial return on your solar investment
Additional Rebates
Local governments and utilities may offer additional rebates. For example, Boulder County provides a $200 rebate for systems installed through specific programs. Holy Cross Energy offers upfront incentives of $250 per kW for systems up to 6 kW and $100 per kW for systems between 6-25 kW
With the abundance of sunny days in Denver and the variety of financial incentives available, now is an excellent time to consider solar energy. Solar Side Up is committed to making your transition to solar as seamless and cost-effective as possible, ensuring you benefit fully from all available incentives.
For more detailed information and to start your solar journey, visit Solar Side Up and explore how we can help you harness the power of the sun.
References
- EnergySage
- SolarEmpower
- SolarReviews
- EcoWatch
- Sunrun
