Denver, CO Solar Panels
Solar Power in Denver
With over 300 days of sunshine each year, Denver is one of the best places in the country for solar panel installation. In fact, Colorado ranks 9th in the nation for residential solar, and it’s easy to see why more Denver homeowners are making the switch.
Rising energy costs matter, too. Colorado electricity prices have climbed 22% from 2020 to 2024. To see how solar could work for your home, our guide to home solar panels is a great place to start.
How Much Do Solar Panels Cost in Denver, CO?
See what solar really costs in Denver. This calculator uses actual installation data from thousands of local homes—including Aurora, Lakewood, Centennial, and Littleton—not estimates. Enter a few details to get a clear, personalized picture based on real projects right here in your community.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Denver gets over 300 sunny days a year, making it one of the best cities in the country for solar, with 5.6 peak sun hours daily.
- Colorado electricity prices rose about 15% from 2021 to 2024, so generating your own solar power helps Denver homeowners gain more control over rising energy costs.
- Colorado offers strong solar incentives, including a state sales tax exemption, full retail-rate net metering, and Xcel Energy rebates that lower your upfront cost.
Denver Electricity Prices
With over 300 days of sunshine a year, Denver is a prime spot for solar—and rising electricity costs make the timing even better.
Electricity prices keep climbing. In Colorado, rates rose from about 13.1 cents per kWh in 2021 to 15.1 cents in 2024—roughly a 15% increase in just three years.
Solar installation in Denver offers a way to take control. By generating your own power, you can rely less on the grid and reduce the impact of these steady rate increases on your monthly bill.
Over time, that adds up. As utility rates continue to rise, the electricity your panels produce becomes more valuable each year—helping Denver homeowners plan for more predictable, long-term energy costs.
Price of Energy: Colorado vs National Average
Denver Area Utility Providers
In Denver, most homes get electricity from Xcel Energy or CORE. In 2023, Xcel charged about 14.3¢ per kWh and CORE about 14.5¢—both close to Colorado’s 2023 state average of 14.3¢.
These 2023 rates sit below the national average of 16.0¢ per kWh. Colorado’s mix of hydro, wind, and natural gas helps keep local prices slightly lower than what many U.S. households pay.
Even below-average rates add up over time and can rise unpredictably. A solar panel installation lets Denver homeowners generate their own power and gain more control over long-term energy costs.
Denver Utilities Electricity Rates
Colorado Solar Incentives
Colorado offers a range of solar incentives in Colorado that help Denver homeowners lower the cost of going solar.
These programs include a statewide sales tax exemption on solar equipment, net metering credits for the energy you send to the grid, and rebates from local utilities and cities.
Together, these state and local incentives make solar more affordable for Denver homeowners. The table below breaks down each program available in your area.
| 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 |
| 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 Denver 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. Denver is served by Xcel Energy. 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.
Xcel Energy 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 Denver 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 to Denver customers. 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.
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 Denver.
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 QuoteDenver 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.
Denver’s high elevation and abundant sunshine—over 300 sunny days yearly—make it excellent for solar. Cold, clear winters actually boost panel efficiency, so production stays strong across every season here.
Solar Production in Denver 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 Denver
We’ve mapped solar installations across the country, right down to the neighborhood level. Explore this interactive map to see how many Denver homes have made the switch to solar. Click any hexagon to discover how your neighbors and local communities are embracing clean energy.
Leasing Solar Panels
In Denver, you get your electricity from Xcel Energy, and the good news is that a Power Purchase Agreement (PPA) is available in your area. A PPA is different from a standard solar lease. Instead of paying a fixed monthly amount, you simply pay a set price for each kilowatt-hour (kWh) your panels produce. Since your system makes more power in Denver’s sunny summers, your solar payments naturally rise and fall with production.
Compared to paying cash, a PPA means no large upfront investment and no maintenance to manage yourself. With Palmetto’s LightReach program, we own and care for the system, so you can enjoy the savings without the hassle. Learn more in our buy or lease guide.
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. Denver homeowners served by Xcel Energy have access to net metering. Under Colorado law, investor-owned utilities credit residential solar customers at the full retail rate for excess electricity sent to the grid, and these credits carry over month to month as a dollar credit.
Any credits left at your annual true-up can either roll over indefinitely or be cashed out at Xcel’s Average Incremental Cost rate. For most Denver homes, rolling credits over provides the greater long-term value.
Yes, in Denver a purchased or owned solar panel system can increase your home’s value. A Zillow study found homes with solar panels sold for about 4.1% more than comparable homes without them.
This benefit applies to systems you own. Leased or PPA systems (like LightReach) work differently at resale, since the buyer typically assumes the existing lease agreement rather than gaining added home value.
With Palmetto’s LightReach lease, Denver homeowners can go solar for a low fixed monthly payment—starting around $77/mo—with no upfront cost. Palmetto owns and maintains the system, so there’s nothing to install or repair out of pocket.
If you prefer to own your system, a cash purchase for an average Denver 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 Palmetto’s LightReach lease, you make one simple monthly payment that covers your solar system, installation, monitoring, maintenance, and a protection program with a 90% Production Guarantee. There’s no upfront cost, and your payment is typically less than your current Xcel bill—so you can save from day one.
For a typical 6.56 kW system in Denver, the estimated payment is about $77/month. Palmetto owns the system and applies the 30% commercial tax credit, passing those savings to you.
Yes, but solar panels are low maintenance. Denver’s clean, dry air and occasional rain or snow keep most systems performing well with little effort from homeowners.
With Palmetto’s LightReach program, we own the system and handle all maintenance, monitoring, and repairs at no extra cost. It also includes a 90% Production Guarantee, so your system keeps generating the power you expect.
For many Denver homeowners, solar can make financial sense—especially with over 300 sunny days a year and electricity rates that rose about 15% from 2021 to 2024.
With a LightReach lease, there’s no upfront investment, and your monthly payment is typically less than your current Xcel Energy bill. That means you can start saving from day one, while Palmetto owns and maintains the system for you.
In Denver, a typical 10 kW home solar system produces roughly 15,900 kWh per year, based on NREL PVWatts data for the area. Smaller systems generate less—about 8,000 kWh for a 5 kW system and 11,200 kWh for a 7 kW system.
Actual output varies with your roof angle, shading, and the season. Denver’s cold, clear winters keep panels efficient, and with over 300 sunny days a year, production stays strong throughout every season.