Aurora, CO Solar Panels
Solar Power in Aurora
If you live in Aurora, CO, and have watched your electricity bills climb, you’re not alone. Colorado electricity prices have increased 22% from 2020 to 2024, leaving many homeowners searching for a more predictable way to power their homes. Solar installation offers a practical path forward.
Colorado ranks 9th in the nation for residential solar, and homes across the Denver metro—including Aurora—are part of that growth. This guide explains how solar installation in Aurora, CO works, from panels to savings. Start with our guide on home solar panels.
How Much Do Solar Panels Cost in Aurora, CO?
Curious what solar costs in Aurora? This calculator uses real data from our actual installations across neighborhoods like Southlands, Saddle Rock, Tallyn’s Reach, and Murphy Creek. Get a clear, local estimate built on firsthand numbers—no guesswork—so you can confidently understand what solar might look like for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Colorado electricity prices rose 22% from 2020 to 2024, so Aurora homeowners are turning to solar for more stable, predictable energy costs.
- A typical Aurora home can save around $58,000 over 25 years with solar, thanks to 5.7 daily peak sun hours and full-retail net metering.
- State and utility incentives still make solar worthwhile, including a sales tax exemption, Xcel rebates, and no-upfront-cost leasing through LightReach.
Aurora Electricity Prices
Homeowners in Aurora, like others across Colorado, have watched electricity rates climb steadily. Understanding those costs is the first step toward smarter energy choices.
Colorado’s average residential electricity price rose from 13.1 cents per kWh in 2021 to 15.1 cents per kWh in 2024. That’s roughly a 15% increase in just three years, and rates continue to trend upward.
As the chart shows, Colorado rates stay just below the national average, but both keep rising. Solar installation lets Aurora homeowners generate their own power, reducing reliance on the grid and its unpredictable price increases.
Over time, that means more stable, predictable energy costs. While utility rates fluctuate year after year, a solar system helps you lock in long-term value and protect your home from future price hikes.
Price of Energy: Colorado vs National Average
Aurora Area Utility Providers
In Aurora, CO, most homes get power from CORE Electric or Xcel Energy. In 2023, both charged about 14.5¢ and 14.3¢ per kWh, close to Colorado’s 14.30¢ state average.
These rates sit below the 2023 national average of 16.0¢ per kWh. Local prices reflect Colorado’s energy mix and regional demand, but even below-average rates can add up over the years.
Solar panel installation lets Aurora homeowners generate their own power and rely less on rising utility rates. It’s a practical way to gain more predictable energy costs over time.
Aurora Utilities Electricity Rates
Colorado Solar Incentives
Aurora homeowners can tap into several solar incentives in Colorado that help lower the upfront and long-term cost of going solar.
Aurora is served by Xcel Energy, so residents may qualify for programs like Solar*Rewards rebates and full-retail net metering. Colorado also exempts solar equipment from the state’s 2.9% sales and use tax automatically.
While the federal 30% residential tax credit has ended, state and local incentives remain. Leasing through LightReach simplifies things—Palmetto handles the commercial ITC and passes savings along via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Colorado Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Colorado exempts solar energy equipment from the state’s 2.9% sales and use tax, reducing the upfront cost of a solar installation automatically at the point of purchase. | |
| Colorado Net Metering Policy | Net Metering | Colorado law requires investor-owned utilities (Xcel Energy and Black Hills Energy) to credit residential solar customers at the full retail rate for excess electricity exported to the grid. | |
| Xcel Energy Solar*Rewards Program | Rebate | Xcel Energy’s Solar*Rewards program offers income-qualified and Disproportionately Impacted Community customers an upfront rebate of $1 per watt (up to 10 kW AC) for installing residential solar, with the 2026 program opening May 21, 2026. | Learn More |
| Xcel Energy Renewable Battery Connect Program | Rebate | Xcel Energy offers residential battery storage rebates of $350/kW (up to $5,000) for standard customers, or $800/kW for income-qualified and Disproportionately Impacted Community customers, plus $100/year for up to 5 years for grid participation. | Learn More |
| Xcel Energy Public Safety Power Shutoff (PSPS) Battery Rebate | Rebate | Xcel Energy offers up to $10,000 for home battery storage systems installed by customers who depend on electricity for life-sustaining medical equipment and live in high wildfire risk zones subject to Public Safety Power Shutoffs. | Learn More |
| City of Centennial Solar Rebate | Rebate | The City of Centennial offers a rebate of up to $300 for residential solar panel installations. | |
| Tesla Powerwall 3 Rebate Program | Rebate | Tesla’s ‘Next Million Powerwall 3 Rebate Program’ offers $500 back per Powerwall 3 unit installed, up to $1,000 per address (two units), with sales finalized by June 30, 2026 and installation completed by December 31, 2026. | |
| Colorado Residential Energy Upgrade (RENU) Loan Program | Rebate | The Colorado RENU Loan Program, administered through the Colorado Clean Energy Fund and local credit unions, provides affordable, no-collateral financing for residential solar and battery storage installations. |
Colorado provides a full state sales tax exemption on the purchase of qualifying solar energy equipment, meaning homeowners in Aurora pay zero Colorado state sales tax (2.9%) on their solar installation. Qualifying components include solar modules, inverters, mounting racks and structures, wiring, control systems, and other components directly related to the solar installation.
This exemption is applied automatically at the point of purchase — you don’t need to file a separate application. On a typical Colorado residential solar installation costing $25,000–$35,000, the state sales tax exemption saves approximately $725–$1,015 in upfront costs.
Note that this exemption covers Colorado state sales tax only. Local city and county sales taxes may still apply depending on your municipality.
Colorado law requires all investor-owned utilities — primarily Xcel Energy and Black Hills Energy — to offer net metering to residential solar customers. Under this policy, you receive a full retail-rate credit for every kilowatt-hour your solar system exports to the grid, the same rate you pay to purchase electricity. This is one of the strongest net metering policies in the country. Municipal utilities and electric cooperatives are not required to offer net metering, but most larger ones do.
Xcel Energy, which serves Aurora, allows net-metered solar systems sized up to 200% of your annual electricity usage. Excess credits roll forward automatically to the next billing cycle. At the end of each calendar year, customers can choose to roll remaining credits into the next year indefinitely, or request a cash payout at Xcel’s Average Hourly Incremental Cost rate. Customers can also opt to receive kWh-based credits applied to future bills instead of cash.
Locking in net metering now is advantageous because homeowners who go solar today lock in current policy terms for the life of their interconnection agreement. States like California have already moved away from full retail crediting, and waiting carries regulatory risk on top of paying higher electricity bills in the meantime.
Xcel Energy’s Solar*Rewards Program provides upfront solar rebates to eligible residential customers in Aurora and across Colorado. The 2026 program opened on May 21, 2026 with a renewed incentive budget. Customers who qualify as Income Qualified or residing in Disproportionately Impacted (DI) Communities can receive an upfront rebate of $1 per watt of installed solar capacity, up to 10 kW AC. For a typical 5 kW system, this equals a $5,000 rebate — a significant reduction in upfront costs.
In addition to the upfront rebate, Solar*Rewards also offers a production incentive of approximately $0.02 per kWh generated by your solar system, paid over a 20-year contract term. Enrolling sooner locks in the current rate for the full contract period, as this per-kWh rate may decrease in future program years.
To apply, contact Xcel Energy or visit their official website before installation, as pre-approval is typically required. Eligibility is based on income relative to Area Median Income (AMI) or residence in a designated Disproportionately Impacted community within Xcel’s Colorado service territory.
Xcel Energy’s Renewable Battery Connect Program provides upfront rebates for qualifying home battery storage systems. The 2026 program opened on May 21, 2026 with a renewed incentive budget. Standard customers receive $350 per kW of battery capacity, up to $5,000 per application. Income-qualified customers and those residing in Disproportionately Impacted (DI) communities receive an enhanced rebate of $800 per kW, up to 75% of the equipment-only cost. Eligible battery models include all Tesla Powerwall models and all current Enphase models.
In addition to the upfront rebate, enrolled customers receive an ongoing payment of $100 per year for up to five years in exchange for allowing Xcel Energy to dispatch stored energy back to the grid during peak demand events — a virtual power plant arrangement that benefits both the homeowner and the broader grid.
Important note: The 2025 program budget was fully exhausted and the funding cycle closed in February 2026. The 2026 program has since reopened with new funding as of May 21, 2026. Pre-approval is required before installation, so contact Xcel Energy or visit their official website to confirm current availability and apply before your installation date.
Xcel Energy’s Public Safety Power Shutoff (PSPS) Battery Rebate provides up to $10,000 for qualifying customers who install a home battery storage system. This program is specifically designed to protect vulnerable customers who depend on electricity for life-sustaining medical equipment and who live in areas prone to Public Safety Power Shutoffs due to high wildfire risk.
To qualify, homeowners must be enrolled in Xcel Energy’s Medical Certification Program or the Colorado Medical Exception Program, and must reside in a Tier 2 or Tier 3 wildfire risk zone within Xcel’s Colorado service territory. This rebate can be stacked with other Xcel battery incentives where eligible, making it one of the most valuable battery rebates available to qualifying customers.
Contact Xcel Energy directly to confirm your eligibility, verify your wildfire risk tier, and obtain pre-approval before purchasing or installing a battery system. As with all Xcel rebate programs, pre-approval before installation is strongly recommended.
The City of Centennial offers a modest but stackable solar rebate of up to $300 for residential solar panel installations within city limits. While smaller than some other municipal programs, this rebate can be combined with Xcel Energy utility rebates, Colorado’s statewide sales tax exemption, the property tax exemption, and the Colorado battery storage tax credit to maximize overall savings.
Contact the City of Centennial directly to confirm current program availability, eligibility requirements, minimum system size, and application procedures before beginning your solar installation. Pre-approval before installation is recommended.
Centennial residents who are also Xcel Energy customers may be eligible to stack this city rebate with Xcel’s Solar*Rewards program (for income-qualified customers) and the Renewable Battery Connect program for battery storage, making the combined incentive package more substantial.
Tesla’s Next Million Powerwall 3 Rebate Program offers homeowners $500 back per Powerwall 3 unit installed, covering both the Powerwall 3 and Powerwall 3 Expansion units. The maximum rebate is $1,000 per address (limited to two units). This manufacturer rebate is available directly from Tesla and can be stacked with utility and state incentives.
To qualify, the sale must be finalized and the rebate registered by June 30, 2026, and the installation must be completed by December 31, 2026. Missing either deadline will disqualify the installation from the rebate, so homeowners should plan their purchase and installation timeline carefully.
This rebate is particularly valuable when combined with Colorado’s 10% Residential Energy Storage Tax Credit (DR-1307), Xcel Energy’s Renewable Battery Connect Program, and any applicable local city rebates — all of which can be layered together to significantly reduce the net cost of a Powerwall 3 installation in Colorado.
The Colorado Residential Energy Upgrade (RENU) Loan Program is administered through the Colorado Clean Energy Fund in partnership with local credit unions across the state. It provides affordable financing for homeowners who want to install solar panels, battery storage, or other qualifying clean energy improvements — without requiring collateral or hidden fees.
Because the loan is administered through local credit unions, borrowers benefit from working with community-based lenders who are familiar with Colorado’s clean energy landscape. Loan rates are competitive and designed to make solar and storage accessible to homeowners who may not have the upfront capital to pay cash for a system.
To apply, homeowners should visit the Colorado Clean Energy Fund’s website to find a participating credit union in their area and begin the application process. The RENU Loan can be used in conjunction with all available rebates and tax credits — meaning you can finance the full system cost and then apply rebates and credits to pay down the loan balance, further reducing your out-of-pocket costs.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Colorado incentives.
Get a Free QuoteAurora Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Aurora enjoys over 240 sunny days yearly, thanks to Colorado’s high elevation and clear skies. Winters bring snow, but bright, cold days keep panels efficient, making solar a strong choice here.
Solar Production in Aurora by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Aurora
We’ve mapped solar installations across the country, and now you can explore Aurora, CO. This interactive heatmap shows how many neighbors in each area have switched to solar. Click any hexagon to see the numbers, and discover the communities near you already enjoying the benefits of clean energy.
Leasing Solar Panels
In Aurora, most homes are served by Xcel Energy, and Palmetto offers a LightReach Power Purchase Agreement (PPA) here. With a PPA, you don’t buy the system—you simply pay a set price for each kilowatt-hour of solar power your panels produce, often less than your utility’s rate.
Because production rises in summer, your solar payments follow suit, but savings tend to even out across the year. Unlike paying cash, there’s no large upfront cost and no repairs to worry about—Palmetto owns, monitors, and maintains the system for you.
Want to weigh your choices? Our guide on whether to buy or lease solar breaks down each option so you can decide what fits your Aurora home best.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes, Aurora, CO has net metering. Because Aurora homeowners are served by Xcel Energy, an investor-owned utility, Colorado law requires that you receive a full retail-rate credit for every kilowatt-hour of solar electricity your system sends to the grid.
These excess credits roll over as a dollar credit from month to month. During Xcel’s annual true-up, you can choose to keep rolling credits forward indefinitely, or cash them out at the Average Incremental Cost rate.
Yes. In Aurora, CO, purchased or owned solar panel systems can increase your home’s value. A Zillow study found homes with solar panels sell for approximately 4.1% more than comparable homes without them.
This benefit applies to systems you own outright. Leased systems (like a LightReach PPA) may affect resale differently, since the buyer typically assumes the existing lease agreement rather than gaining added home value.
Aurora homeowners can go solar with no upfront cost through a LightReach lease, paying a low fixed monthly payment starting around $77/mo for a typical medium-sized home. Palmetto owns and maintains the system, so there are no repairs to worry about.
If you prefer to buy, a cash purchase for an average Aurora home runs about $19,534. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 federal law change. See the calculator above for pricing by home size.
With a solar lease like Palmetto’s LightReach program, you don’t buy the panels. Instead, one simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee—with no upfront cost. In Aurora, CO, a typical 6.56 kW system runs about $77/month.
Palmetto owns the system, so it claims the federal 30% commercial tax credit and passes those savings to you through lower payments. Since your lease is often less than your current electricity bill, you can start saving right away.
Yes, solar makes sense for many Aurora homeowners. With 5.7 daily peak sun hours, over 240 sunny days a year, full-retail net metering, and rising Colorado electricity rates, a typical home can save around $58,000 over 25 years.
Upfront cost is no longer a barrier. Palmetto’s LightReach solar lease lets you go solar with no money down, so you can start saving from day one while Palmetto owns and maintains the system.
In Aurora, a typical home solar system produces roughly 1,600 kWh per year for every kilowatt (kW) installed, thanks to Colorado’s 5.7 daily peak sun hours and 240+ sunny days. For example, a 10 kW system generates about 16,000 kWh annually, while a 5 kW system produces around 8,000 kWh.
Actual output varies by season, roof angle, and shading. Summer months like June and July produce the most, while shorter winter days generate less—though Colorado’s clear, cold skies keep panels efficient year-round.
Solar panels are low maintenance. Because Colorado’s dry, sunny climate helps keep them working efficiently, most Aurora systems need little more than occasional cleaning and monitoring to perform well.
With a LightReach plan, Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost to you. This coverage includes a 90% Production Guarantee, so your panels are cared for throughout the agreement.