Solar Incentives
Solar incentives refer to financial incentives provided by governments, utilities, or other organizations to encourage the adoption of solar energy. These incentives can take various forms, including tax credits, rebates, grants, and performance-based incentives.
Here are some examples of the solar incentives that have been offered in Colorado:
Federal Tax Credit:
The federal government offers a solar tax credit, which provides a 30% tax credit for the cost of installing solar panels on a residential or commercial property. The tax credit is set to decrease at the end of 2032.
Net Metering:
Colorado has a net metering policy that allows customers to receive credit for the excess electricity their solar panels generate and feed back into the grid. This credit can be used to offset the cost of electricity that they use from the grid.
Renewable Energy Credits (RECs):
Colorado has a Renewable Energy Standard (RES), which requires utilities to generate a certain percentage of their electricity from renewable sources, including solar. Utilities can purchase RECs from homeowners who generate solar energy, which can provide additional income for homeowners who install solar panels.
Colorado C-PACE Program:
Commercial property owners can apply for financing through the Colorado Commercial Property Assessed Clean Energy (C-PACE) program, which provides long-term financing for energy efficiency, renewable energy, and water conservation improvements.
Property Tax Exemption:
In Colorado, residential solar installations are exempt from property taxes. This means that homeowners who install solar panels will not see an increase in their property taxes as a result of the installation.
Performance-based:
Colorado offers performance-based incentives for solar through its Renewable Energy Standard (RES) and the Performance-Based Incentive (PBI) program. To qualify for the PBI program, the solar energy system must be installed by a qualified installer and meet certain technical requirements. The customer must also be a customer of a participating utility, which includes Xcel Energy, Black Hills Energy, and Colorado Springs Utilities.
Grants and Rebates:
Colorado offers various grants and rebates for renewable energy installations, including solar. These incentives can help reduce the upfront costs of installing solar panels.
RENU Loan Program:
The Colorado Residential Energy Upgrade (RENU) Loan Program is a financing program that helps Colorado homeowners pay for energy efficiency and renewable energy upgrades to their homes. Through the RENU Loan Program, homeowners can apply for low-interest loans to finance upgrades such as energy-efficient windows, insulation, heating and cooling systems, solar panels, and more.
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It's important to note that solar incentives can change over time, and may be subject to funding availability and other factors. To get the most up-to-date information on the solar incentives available in Colorado in 2023, you can check with the Colorado Energy Office or you can book a call with one of our team members to discuss your current options.
This information was updated as of May 2023
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