Colorado Springs, CO Solar Panels
In This Guide
- 01 Solar Energy in Colorado Springs
- 02 Solar Cost Calculator
- 03 Colorado Springs Reviews
- 04 Key Takeaways
- 05 Colorado Springs Electricity Prices
- 06 Colorado Solar Incentives
- 07 Colorado Springs Solar Production
- 08 Solar Installations in Colorado Springs
- 09 Leasing Solar Panels
- 10 Frequently Asked Questions
Solar Power in Colorado Springs
Colorado Springs sees over 300 days of sunshine a year — making it one of the best places in the country to go solar. In fact, Colorado ranks 9th in the US for residential solar installations, a sign that homeowners across the state are already making the switch.
This guide covers everything you need to know about solar panels for your home — from how the technology works to what the installation process looks like in Colorado Springs.
How Much Do Solar Panels Cost in Colorado Springs, CO?
Based on real solar installations across Colorado Springs — from Briargate to Fountain and Manitou Springs — this calculator uses Palmetto’s local data to give you an accurate estimate of what solar could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Colorado Springs gets over 300 sunny days a year, making it one of the best places in the country to generate solar energy at home.
- A typical Colorado Springs home can save around $57,000 over 25 years with solar — with lease options starting as low as $75/month and no upfront cost.
- Colorado Springs homeowners have access to local utility rebates from Colorado Springs Utilities and other providers that can meaningfully reduce the cost of going solar.
Colorado Springs Electricity Prices
Electricity costs in Colorado Springs have been rising steadily. Knowing what you pay — and why it matters — is the first step toward smarter energy choices.
Colorado electricity rates climbed from 13.1 cents per kWh in 2021 to 15.1 cents per kWh in 2024 — a roughly 15% increase in just three years. That means the average household is spending noticeably more on electricity today than just a few years ago.
Solar can help homeowners in Colorado Springs reduce their dependence on the grid. When you generate your own electricity, rising utility rates have less impact on your monthly energy costs. It shifts some control back to the homeowner.
The long-term picture is straightforward: as electricity rates continue to rise, the value of generating your own power grows alongside them. Homeowners who produce their own energy are better insulated from future rate increases over time.
Price of Energy: Colorado vs National Average
Colorado Springs Area Utility Providers
In Colorado Springs, two main utilities supply electricity: Colorado Springs Utilities at 13.8¢/kWh and CORE Electric Cooperative at 14.5¢/kWh. These are the most recent rates available, based on 2023 data.
Both rates fall below the 2023 national average of 16.0¢/kWh. However, Colorado Springs Utilities sits just under the 2023 Colorado state average of 14.30¢/kWh, while CORE Electric Cooperative lands slightly above it.
Even below-average electricity rates add up over time. Solar can help homeowners lock in more predictable energy costs, reducing exposure to future rate increases — a practical consideration worth understanding.
Colorado Springs Utilities Electricity Rates
Colorado Solar Incentives
Colorado Springs homeowners have access to several solar incentives in Colorado that can meaningfully reduce the cost of solar installation — starting with programs offered by Colorado Springs Utilities.
Available incentives include utility rebates from Colorado Springs Utilities, Xcel Energy, Black Hills Energy, and Holy Cross Energy, as well as battery storage rebates, income-qualified programs, and low-interest financing through the state’s RENU Loan Program.
Note that the federal residential solar tax credit has been eliminated. Homeowners who lease solar through Palmetto’s LightReach program have Palmetto handle the commercial tax credit, with savings passed through via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Xcel Energy Solar*Rewards Program | Rebate | Xcel Energy offers residential solar customers an upfront rebate of $1 per watt of installed solar capacity, up to $7,000 for a 7 kW system, with pre-approval required before installation. | |
| Xcel Energy Solar*Rewards – Income-Qualified & Disproportionately Impacted Communities (IQDIC) | Rebate | Income-qualified Xcel Energy customers and those in Disproportionately Impacted communities can receive an enhanced solar rebate of $1,000 per kW, up to $10,000 for a 10 kW system. | |
| Xcel Energy Renewable Battery Connect Program | Rebate | Xcel Energy offers residential battery storage rebates of $350 per kW (up to $5,000) for standard customers, or $800 per kW for income-qualified customers, plus $100 annually for up to 5 years for grid participation. | |
| Xcel Energy Public Safety Power Shutoff (PSPS) Battery Rebate | Rebate | Xcel Energy offers up to $10,000 for battery storage installations for medical-dependent customers living in high wildfire risk areas subject to Public Safety Power Shutoffs. | |
| Black Hills Energy Solar Rebate (Income-Qualified) | Rebate | Black Hills Energy offers income-qualified Colorado customers a solar rebate of $1 per watt for systems from 0.5 kW to 25 kW, plus a production incentive of approximately 3.8 cents per kWh for 10 years. | |
| Black Hills Energy Battery Storage Rebate | Rebate | Black Hills Energy customers in Colorado can receive a rebate of $100 per kWh of battery storage capacity, up to $1,000, when a battery system is installed alongside a solar PV system. | |
| Colorado Springs Utilities Renewable Energy Rebate | Rebate | Colorado Springs Utilities offers residential customers a solar rebate of up to $0.10 per watt installed for rooftop solar systems up to 15 kW, averaging approximately $750 for a typical system. | Learn More |
| Tesla Powerwall 3 Manufacturer Rebate | Rebate | Tesla offers a $500 per unit rebate on Powerwall 3 installations, up to $1,000 per address (two units), for systems registered by June 30, 2026 and installed by December 31, 2026. | |
| Colorado Residential Energy Upgrade (RENU) Loan Program | Rebate | The Colorado Clean Energy Fund’s RENU Loan Program offers affordable, low-interest financing for homeowners installing solar panels or other clean energy improvements through partnering state credit unions. |
Xcel Energy’s Solar*Rewards Program provides eligible residential customers with an upfront cash rebate of $1 per watt of installed solar capacity, up to a maximum of $7,000 for a 7 kW system. For a typical 5 kW residential solar installation, this translates to a $5,000 rebate that directly offsets the cost of going solar. Pre-approval from Xcel Energy is required before installation begins, and a $100 filing fee applies for Level 1 systems.
In addition to the upfront rebate, Solar*Rewards participants can receive ongoing monthly payments in exchange for Renewable Energy Credits (RECs) generated by their system. For systems under 25 kW, the performance-based incentive is $0.005 per kWh produced. While modest, this provides a small ongoing income stream over the life of the system.
This program is available exclusively to Xcel Energy residential customers in Colorado. Because funding is limited and awarded on a first-come, first-served basis, early application is strongly recommended. Contact Xcel Energy or visit their website to check current funding availability and begin the pre-approval process before contracting with an installer.
Xcel Energy’s Solar*Rewards Income-Qualified and Disproportionately Impacted Communities (IQDIC) program offers a significantly enhanced rebate for eligible customers. Qualifying homeowners can receive $1,000 per kilowatt (kW) of installed solar capacity, up to a maximum of $10,000 for a 10 kW system. This is ten times the standard Solar*Rewards rebate rate, making solar dramatically more affordable for lower-income households and those in designated disproportionately impacted communities.
To qualify, customers must be served by Xcel Energy and meet income qualification thresholds or reside in a Colorado-designated Disproportionately Impacted (DI) community. Income qualification is generally based on household income relative to the Area Median Income (AMI) for your county. Xcel Energy can help determine eligibility during the application process.
As with the standard Solar*Rewards program, pre-approval is required before installation, and funding is limited and awarded on a first-come, first-served basis. This program historically fills quickly, so eligible customers should apply as early as possible. Visit Xcel Energy’s website or call their renewable energy team to check current funding availability and begin your application.
Xcel Energy’s Renewable Battery Connect Program provides upfront cash rebates to residential customers who install qualifying battery storage systems. Standard customers receive $350 per kW of battery capacity, up to a maximum of $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 the Tesla Powerwall 2, Tesla Powerwall+, Tesla Powerwall 3, and SolarEdge Home Battery.
In addition to the upfront rebate, enrolled customers receive $100 annually for up to five years in exchange for allowing Xcel Energy to dispatch stored energy back to the grid during peak demand events. This brings the total potential benefit to $5,500 for standard customers over the full enrollment period.
Program Status (2026): The 2025 program budget was fully exhausted and the current funding cycle closed in February 2026. Xcel Energy has indicated the program may reopen with new funding mid-year 2026. Interested customers should monitor Xcel’s website for updates on funding availability before proceeding with installation.
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. The battery storage system must meet Xcel’s technical requirements for the program.
This rebate can be combined with other Xcel battery incentives where applicable, and may significantly offset the cost of a battery system for eligible customers. Contact Xcel Energy directly to confirm your eligibility, verify your wildfire risk tier, and begin the application process before purchasing or installing a battery system.
Black Hills Energy offers income-qualified residential customers in Colorado a solar rebate of $1 per watt of installed solar capacity for systems ranging from 0.5 kW to 25 kW. For a typical 7 kW system, this equals a $7,000 upfront rebate. Eligibility is based on household income relative to the Area Median Income (AMI); customers should contact Black Hills Energy to confirm their qualification status.
In addition to the upfront rebate, income-qualified customers can receive a production incentive of approximately 3.8 cents per kWh generated by their solar system for 10 years. This ongoing payment provides additional financial benefit over the life of the system and can meaningfully improve the overall return on investment for going solar.
Black Hills Energy also offers a battery storage rebate that can be combined with the solar rebate for eligible customers. Customers interested in these programs should contact Black Hills Energy directly to verify current eligibility requirements, funding availability, and application procedures, as program details are subject to change.
Black Hills Energy offers a battery storage rebate of $100 per kWh of energy storage capacity, up to a maximum of $1,000 per customer. To qualify, the battery storage system must be installed alongside a solar photovoltaic (PV) system — standalone battery installations without solar do not qualify for this rebate.
For a 10 kWh battery system, this rebate provides $1,000 in savings, reaching the program maximum. This rebate can be combined with Black Hills Energy’s solar rebate programs for eligible customers, helping to further offset the combined cost of a solar-plus-storage installation.
Customers should contact Black Hills Energy directly to confirm current program availability, eligibility requirements, and application procedures before purchasing or installing a battery system. Program details and funding availability are subject to change.
Colorado Springs Utilities (CSU) offers a Renewable Energy Rebate for residential customers who install rooftop solar systems. The rebate is $0.10 per watt of installed solar capacity for systems up to 15 kW. For a typical 7.5 kW residential system, this translates to approximately $750 in rebate savings. Most residential solar installations in Colorado Springs fall well within the 15 kW system size limit.
To be eligible, you must be a Colorado Springs Utilities electric customer and own your solar system. The installation must be performed by a licensed contractor and meet all CSU interconnection and technical requirements. Pre-approval from CSU is recommended before installation begins.
While the per-watt rebate amount is modest compared to some other Colorado utilities, it can still provide meaningful savings when combined with Colorado’s state-level tax exemptions and the battery storage tax credit. Contact Colorado Springs Utilities directly to confirm current program availability and begin the application process.
Tesla’s Powerwall 3 Rebate Program (also referred to as the “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 (two units). This is a manufacturer-direct rebate offered by Tesla, not a government or utility program.
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 system from receiving the rebate, so it is important to plan your purchase and installation timeline carefully.
This rebate can be combined with Colorado’s 10% Residential Energy Storage Tax Credit, and — where applicable — with utility battery rebates such as Xcel Energy’s Renewable Battery Connect Program (when funding is available). Stacking multiple incentives can significantly reduce the net cost of a Powerwall 3 installation in Colorado Springs.
The Colorado Residential Energy Upgrade (RENU) Loan Program, offered through the Colorado Clean Energy Fund in partnership with state credit unions, provides affordable financing for homeowners who want to install solar panels or make other clean energy improvements. The program is designed to make the upfront cost of solar more manageable by offering competitive interest rates and flexible repayment terms that are often more favorable than traditional home improvement loans.
The RENU Loan is available to Colorado homeowners and can be used to finance solar panel systems, battery storage, and other qualifying clean energy upgrades. 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.
To apply, homeowners should visit the Colorado Clean Energy Fund’s website to find a participating credit union and begin the application process. Using a RENU Loan in combination with available rebates and tax credits can help homeowners in Colorado Springs go solar with little to no money out of pocket, with loan payments often offset by monthly electricity bill savings.
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 QuoteColorado Springs 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.
Colorado Springs enjoys over 300 sunny days annually, with high elevation boosting solar intensity. Even snowy winters don’t hurt much — cold, clear days can actually improve solar panel efficiency.
Solar Production in Colorado Springs 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 Colorado Springs
We’ve mapped thousands of solar installations across Colorado Springs so you can see just how many of your neighbors have made the switch. Explore the heatmap below to discover which communities and neighborhoods are leading the way in clean energy adoption.
Leasing Solar Panels
In Colorado Springs, homeowners served by Colorado Springs Utilities and other major providers in the state have access to a Power Purchase Agreement (PPA) through Palmetto’s LightReach program. With a PPA, you pay for the electricity your panels produce at a set rate per kilowatt-hour (kWh) — rather than a fixed monthly amount. That means your bill may be a bit higher in sunny summer months and lower in winter, but your annual savings are comparable to a traditional lease.
The biggest advantage of a PPA over paying cash upfront? You avoid the large initial investment — and you hand off all system maintenance to Palmetto. No repair bills, no performance monitoring, no hassle. Palmetto owns the system and keeps it running, while you simply pay for the clean energy it generates. It’s a straightforward way to benefit from solar without taking on the responsibilities of ownership. Learn more about how a PPA compares to buying solar outright.
Colorado Springs Utilities customers are eligible for this option, as are customers of Xcel Energy, Black Hills Energy, United Power, CORE Electric Cooperative, Grand Valley Power Cooperative, and DMEA throughout Colorado. If you’re unsure which utility serves your home, your monthly bill will confirm it. Either way, a PPA through LightReach offers a low-barrier path to solar energy — no large upfront cost, no maintenance burden, and predictable energy pricing from day one.
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, solar makes strong sense in Colorado Springs. With over 300 sunny days per year and 5.7 average peak sun hours daily, Colorado Springs is one of the best places in the country to generate solar energy. A typical home can save around $57,000 over 25 years, and utility rebates from Colorado Springs Utilities can help reduce upfront costs further.
For homeowners concerned about the initial investment, Palmetto’s LightReach solar lease removes the upfront cost barrier entirely — you can go solar with no money down and start saving from day one.
Yes, Colorado Springs Utilities offers 1:1 net metering to residential solar customers. When your solar panels produce more electricity than you use, the excess is credited to your account as a kWh credit, which rolls over month to month.
At the end of the calendar year, Colorado Springs Utilities customers can choose to either roll over unused credits indefinitely or cash out at 2 cents per kWh. Because 2 cents per kWh is a relatively low rate, using your credits against future bills is typically the more valuable option for most homeowners.
Yes, solar panels can increase your home value in Colorado Springs. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $400,000 home in Colorado Springs, that’s roughly $16,400 in added value.
Colorado’s strong solar market and over 300 sunny days per year make solar an attractive feature for buyers. Homes with owned solar systems — not leased — typically see the greatest home value benefit.
The most accessible way to go solar in Colorado Springs is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $75/month for a typical home. Palmetto owns and maintains the system, so there’s nothing to manage.
For homeowners who prefer to purchase outright, a typical 6.4 kW system runs around $19,117. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For Colorado Springs homeowners, solar can make strong financial sense — especially with a lease option. With Palmetto’s LightReach program, there’s no upfront investment required. Your monthly lease payment is typically less than what you’re currently paying for electricity, meaning you can start saving from day one.
For those who purchase outright, a typical system pays for itself in about 10 years, with estimated savings of ~$57,000 over 25 years. With over 300 sunny days annually, Colorado Springs is well-suited for solar to deliver real, long-term financial value.
Palmetto Solar is a strong choice for Colorado Springs homeowners. We’re a national company with deep local roots — completing 1,534 installs across Colorado since 2020. Our trusted installer network ensures quality workmanship, and we offer some of the most flexible financing options in the industry.
Whether you prefer to purchase or lease, our LightReach program lets you go solar with no upfront cost. We handle installation, maintenance, and monitoring — so you can simply enjoy the savings that come with Colorado Springs’ 300+ sunny days a year.
With Palmetto’s LightReach lease, Colorado Springs homeowners pay one simple monthly payment that covers the solar system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 6.40 kW system, the estimated monthly payment is approximately $75/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — a key advantage since the residential ITC is no longer available for cash purchases. Most homeowners find the lease payment is less than their current electricity bill, so savings begin immediately.