Solar Guide

Colorado’s Property Tax Exemption for residential solar systems eliminates property taxes on qualifying solar equipment installed on your home. This means you won’t pay any additional property taxes on the value of your solar panels, inverters, and related equipment, even though these systems typically add significant value to your property.

To qualify for this exemption, your solar system must be installed on residential property, owned by you (the homeowner), produce electricity primarily for your home’s use, and have a capacity of no more than 100 kilowatts of AC electricity. The exemption applies only to the solar equipment itself – not your underlying property. There are no specific deadlines mentioned, and the exemption appears to be ongoing as long as you meet the requirements. Keep in mind that while your solar equipment won’t be taxed, some counties may still need to account for solar systems when evaluating comparable home sales in your area.

Colorado’s Sales Tax Exemption for renewable energy components allows homeowners to avoid paying state sales tax when purchasing solar equipment for their home. This exemption applies to essential solar system components including solar panels (modules), inverters, mounting racks and structures, wiring, control systems, and other key hardware needed to generate electricity from solar energy.

The financial benefit equals the amount of Colorado’s state sales tax rate, which varies by location but typically ranges from 2.9% to over 10% when including local taxes. However, it’s important to note that this exemption only applies to state-administered taxes and certain special district taxes like RTD. Most city and county sales taxes are not included unless your local government has specifically adopted this exemption through an ordinance. Homeowners should check with their installer or local tax authority to understand exactly which taxes are exempted in their specific area, as the savings can vary significantly depending on your location within Colorado.

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 to homeowners who install qualifying solar equipment through their approved contractor network, making clean energy more affordable for local residents.

The financial benefits include $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 maximum. The combined maximum incentive for both solar and battery is $4,000 per home. For example, a typical 5 kW solar system would earn the full $1,000 solar rebate, while a 20 kWh battery system would qualify for the maximum $3,000 battery incentive.

To qualify, 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, use new UL-listed equipment, and meet utility interconnection standards. The system must be installed within six months of receiving your rebate reservation letter. Additionally, you’ll need to assign the renewable energy credits from your system to Fort Collins Utilities for 20 years as part of the rebate agreement.

Important considerations include ensuring your roof has good sun exposure from 9 a.m. to 3 p.m., as shaded systems may receive reduced rebates if they produce less than 90% of optimal output. Fort Collins Utilities recommends completing an energy efficiency assessment before installing solar to maximize your investment. The program also offers on-bill financing through Epic Loans, and solar systems remain eligible for the 30% federal tax credit through 2032.

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

Residential customers can receive up to $300 (capped at 3kW systems), while commercial customers can receive up to $1,000 (capped at 10kW systems). The program also includes rebates for small wind systems at the same rate and caps as residential solar. To qualify, your contractor must complete all necessary paperwork and apply on your behalf, though contractors don’t need to be pre-registered with SMPA. Important note: deadlines do apply for applications, so it’s essential to work with your installer to submit paperwork promptly after installation.

The Xcel Energy Solar* Rewards Program – Low Income is a utility incentive program 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 power.

Unfortunately, the official source information provided appears to be incomplete or inaccessible, so specific details about the financial benefits, exact eligibility requirements, and program deadlines are not available at this time. To get complete and current information about this program, including rebate amounts, income qualification thresholds, application deadlines, and any special terms, homeowners should contact Xcel Energy directly or visit their official website. It’s important to verify program availability and requirements, as utility incentive programs can change or have limited funding that may be allocated on a first-come, first-served basis.

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 electric grid. When your home battery has extra power stored up, Xcel Energy can use that energy to help meet electricity demand across their service area, and they pay you for this service.

Unfortunately, the official source information provided appears to be incomplete or inaccessible, so specific financial benefits, eligibility requirements, and program deadlines cannot be determined at this time. Homeowners interested in this program should contact Xcel Energy directly or visit their website to get current details about payment rates, system requirements, enrollment periods, and any technical specifications needed for participation. This type of 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 electric or solar thermal (hot water) systems. This rebate program, established in 2008, allows property owners to get back approximately 15% of the city sales and use tax they paid on materials and permits for their solar installation.

To qualify for this rebate, you must be a Boulder resident or business owner who has completed a solar installation 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 system. 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 it’s wise to apply as soon as possible after your installation is complete.

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 can then be used to offset electricity you draw from the grid when your panels aren’t producing enough power, such as 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 the year (usually in March or April), you have options for remaining credits. Some utilities like Xcel Energy and Black Hills Energy let you choose between cashing out excess credits at a lower rate (around 1.5-4 cents per kWh) or rolling them over indefinitely. Other utilities automatically cash out excess credits annually at rates ranging from 2-5.5 cents per kWh. Time-of-use customers with Grand Valley Power have more complex rules based on peak and off-peak periods, with different thresholds for credit accumulation and payout.

Most utilities don’t specify strict eligibility requirements beyond having an approved solar installation, though system size limits may apply. The main consideration for homeowners is choosing the right utility option if available – rolling over credits indefinitely is typically more valuable than cashing out at low rates, but you’ll lose unused credits if you move. It’s important to size your solar system appropriately to maximize the value of net metering credits throughout the year.