Solar Guide

Colorado’s Property Tax Exemption for renewable energy systems eliminates property taxes on qualifying solar equipment installed on your home. This state-level tax exemption applies specifically to the solar panels, inverters, and other renewable energy equipment – not your underlying property value. The exemption provides 100% relief from property taxes on the added value that solar equipment brings to your home.

To qualify for this exemption, your solar system must be located on residential property, owned by you as the homeowner, and primarily used to power your home. For solar electric systems (photovoltaic), the system must have a production capacity of no more than 100 kilowatts of AC electricity. The solar equipment must be personal property that produces energy used by your residential property. There are no specific deadlines mentioned, and the exemption appears to be ongoing for qualifying systems. Homeowners should note that while the solar equipment itself is exempt from property taxes, county assessors may still need to account for any contributory value when analyzing comparable home sales in your area.

Colorado’s Sales Tax Exemption for renewable energy components allows homeowners to avoid paying state sales and use tax when purchasing solar equipment. This exemption applies to essential solar system components including solar panels (modules), inverters, mounting racks, wiring, control systems, and other hardware needed to generate electricity from sunlight. The exemption helps reduce the upfront cost of going solar by eliminating the state’s sales tax burden on these qualifying components.

The financial benefit varies based on your local tax rates, but you’ll save the applicable state sales tax percentage on all qualifying solar equipment purchases. The exemption applies to state-administered taxes and certain special district taxes like RTD and Scientific and Cultural Facilities District taxes. However, it typically does not apply to city or county sales taxes unless those local governments have specifically adopted the exemption through their own ordinances. There are no income requirements or application deadlines – the exemption is automatically available when you purchase qualifying renewable energy components. Keep in mind that the exemption does not cover labor costs, energy storage systems like batteries, or monitoring equipment, so you’ll still pay regular sales tax on those items.

The Fort Collins Solar Rebates program is a utility incentive that helps residential customers reduce the upfront cost of installing solar panels and battery storage systems. Fort Collins Utilities offers cash rebates of $200 per kilowatt (kW) of solar capacity installed, with a maximum rebate of $1,000 for solar systems. Battery storage systems receive $150 per kilowatt-hour (kWh) of capacity, up to $3,000. The total maximum incentive for any single project is $4,000.

To qualify for these rebates, you must be a Fort Collins Utilities electric customer and work with one of their approved Participating Solar Contractors. Your solar system must be at least 500 watts in size and meet specific interconnection standards. The system must be installed within six months of receiving your rebate reservation letter. In exchange for the rebate, you’ll assign the renewable energy credits from your system to Fort Collins Utilities for 20 years. The rebate comes as a check mailed to you after your system passes final inspection and is connected to the grid.

The San Miguel Power Association Solar Rebates program offers cash rebates to help members reduce the upfront cost of installing solar energy systems. This utility-sponsored incentive provides $0.10 per watt for both residential and commercial solar installations, making clean energy more affordable for homeowners and businesses in the San Miguel Power Association service area.

Residential customers can receive up to $300 for solar systems up to 3 kilowatts, while commercial customers can earn up to $1,000 for systems up to 10 kilowatts. The program also includes rebates for small wind systems at the same rate and maximum amounts as residential solar. To participate, your contractor must complete and submit the application on your behalf using SMPA’s required forms, and certain contractor eligibility requirements must be met. Applications have deadlines, so it’s important to work with your installer to submit paperwork promptly after installation.

The Xcel Energy Solar* Rewards Program for Low Income is a utility-sponsored incentive designed to make solar energy more accessible for qualifying low-income households in Colorado. This program provides financial assistance to help reduce the upfront costs of installing solar panels, making clean energy more affordable for families who might otherwise be unable to access solar benefits.

Unfortunately, the specific financial benefit amounts, eligibility requirements, and program deadlines are not available from the provided source information. To get complete details about rebate amounts, income qualification thresholds, application deadlines, and other important program requirements, homeowners should contact Xcel Energy directly or visit their official website. Since utility programs can have limited funding and specific enrollment periods, it’s important to inquire about availability and act quickly if you believe you may qualify for this low-income solar assistance program.

The Xcel Energy Solar* Rewards Program – Renewable Battery Connect is a utility program that allows Colorado homeowners with solar panels and battery storage systems to earn money by sharing their stored energy with the grid during peak demand periods. When your battery has excess power stored, Xcel Energy can access it remotely to help balance the electrical grid, and you receive compensation for participating in this energy-sharing program.

Unfortunately, the specific financial benefits, eligibility requirements, and program deadlines are not available from the provided source information. To learn about the exact dollar amounts or percentages you could earn, qualification criteria for your solar and battery system, and any application deadlines, you’ll need to contact Xcel Energy directly or visit their website for complete program details. This type of battery incentive program typically requires you to have both solar panels and a compatible battery storage system installed at your home.

The City of Boulder Solar Tax Rebate is a local incentive program that helps residents and businesses recover some of the sales tax they paid when installing solar systems. This program, established in 2008, provides a rebate of approximately 15% of the city sales and use tax paid on materials and permits for solar electric or solar thermal (hot water) installations.

To qualify for this rebate, you must be a Boulder resident or business owner who has installed a qualifying solar system on your property. The most important requirement is timing – you must submit your rebate application within 12 months of the city’s final inspection of your solar installation. You’ll need to complete the Solar Tax Rebate Application and Affidavit of Legal Residency, then mail these forms along with your project receipts and a copy of your ID to the city’s Finance department. Keep in mind that rebates are subject to funding availability, so applying promptly after your installation is complete is recommended.

Net metering in Colorado allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, the extra electricity flows to the grid and you receive credits on your utility bill. These credits offset the electricity you use from the grid when your solar panels aren’t producing enough power, like at night or during cloudy days.

The financial benefits vary by utility company, but most Colorado utilities offer 1:1 net metering, meaning you receive full retail rate credit for each kilowatt-hour you send to the grid. Excess credits typically roll over month to month, and at the end of each year (usually in March or April), you have options for remaining credits. Some utilities like Xcel Energy let you choose between cashing out excess credits at a lower rate (around 1.5 cents per kWh) or rolling them over indefinitely. Other utilities like United Power and CORE Electric automatically cash out remaining credits at rates between 4-5.5 cents per kWh. Colorado Springs Utilities offers the best cash-out option at 2 cents per kWh, while some cooperatives have more complex time-of-use structures that credit production and consumption differently based on peak and off-peak periods.