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), used primarily to power your home, and have a capacity of no more than 100 kilowatts of AC electricity. The exemption only applies to the solar equipment itself – not your underlying property. There are no specific deadlines mentioned, but the system must meet all criteria to maintain the exemption. Keep in mind that this exemption is automatic for qualifying systems, but you should verify with your local county assessor that it’s being properly applied to avoid unexpected property tax increases.

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 necessary equipment used 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 and Scientific and Cultural Facilities District taxes. Most city and county sales taxes are not included unless those local governments have specifically adopted the exemption through their own ordinance or resolution. The exemption does not cover labor costs, energy storage systems like batteries, or remote monitoring equipment beyond the basic solar generation system.

The Fort Collins Solar Rebates program is a utility incentive that helps residents reduce the upfront cost of installing solar panels and battery storage systems. Fort Collins Utilities offers cash rebates to customers who install qualifying solar equipment through their network of approved contractors. The program is designed to make solar more affordable while helping the city meet its renewable energy goals.

The financial benefits include a $200 per kilowatt rebate for solar installations (up to $1,000 maximum) and a $150 per kilowatt-hour rebate for battery storage (up to $3,000 maximum). The total maximum rebate for any single project is $4,000. For example, a typical 5-kilowatt solar system would qualify for the full $1,000 solar rebate. These rebates are provided as checks after the system passes final inspection and are separate from the 30% federal tax credit that’s also available.

To qualify, you must be a Fort Collins Utilities electric customer and work with one of their approved participating contractors. Your solar system must be at least 500 watts in size and meet specific technical requirements. 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 receives uninterrupted sunlight from 9 a.m. to 3 p.m. and managing any tree shading that could reduce system performance. Fort Collins Utilities recommends completing a home energy efficiency assessment before installing solar to maximize your investment. The program also offers on-bill financing through their Epic Loan program for qualified customers.

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 program provides financial incentives for both residential and commercial solar installations within SMPA’s service territory in Colorado.

Residential customers can receive $0.10 per watt for solar photovoltaic systems, with a maximum rebate of $300 (capped at 3kW systems). Commercial customers receive the same rate of $0.10 per watt but can earn up to $1,000 in rebates (capped at 10kW systems). The program also includes rebates for small residential wind systems at the same rate and maximum as residential solar.

To qualify for these rebates, you must be an SMPA member and use their approved application process. Your contractor must complete all necessary paperwork and submit the application on your behalf – you cannot apply directly as a homeowner. While contractors don’t need to pre-register with SMPA, they must meet certain eligibility requirements. The program has application deadlines, so it’s important to work with your contractor to submit paperwork promptly after installation.

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

Unfortunately, the official source information appears to be incomplete or inaccessible, which means specific details about financial benefits, exact eligibility requirements, and program deadlines are not available at this time. Typically, utility solar programs for low-income customers offer rebates, reduced rates, or special financing options. To get complete and current information about this program, including specific dollar amounts, income requirements, and application deadlines, homeowners should contact Xcel Energy directly or visit their official website to ensure they have the most accurate and up-to-date program details.

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. When your home battery has extra power stored up, Xcel Energy can access that energy during times when the electric grid needs additional power, and they pay you for this service.

Unfortunately, the official source information appears to be incomplete, so specific financial benefits, eligibility requirements, and program deadlines are not available at this time. Homeowners interested in this program should contact Xcel Energy directly to learn about current incentive rates, technical requirements for their solar and battery systems, and application processes. Since utility programs can change frequently and may have limited enrollment periods, it’s important to get the most up-to-date information directly from Xcel Energy to understand how this program could benefit your specific solar and battery setup.

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 you to get back approximately 15% of the city sales and use tax you paid on materials and permits for your solar installation.

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 forms, then mail them 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 consume from the grid when your solar 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 of excess solar energy you produce. Most utilities allow you to carry credits forward month to month, and you typically have two options for handling annual excess credits: cash out at a lower rate (ranging from 1.5 to 5.5 cents per kWh depending on your utility) or roll credits over indefinitely. The rollover option is generally more valuable since you can use credits at the full retail rate rather than receiving a small cash payment. However, if you move homes, any remaining credits are typically forfeited, so the cash-out option might be better if you plan to relocate soon.