Denver, CO Solar Panels
Solar Power in Denver
Denver gets around 300 days of sunshine a year — making it one of the best places in the country for solar. It’s no surprise that Colorado ranks 9th in the US for residential solar installations.
Electricity prices in Colorado rose 22% from 2020 to 2024. More homeowners are exploring solar to better understand their options. This guide covers what you need to know about solar panels for your home in Denver.
How Much Do Solar Panels Cost in Denver, CO?
Using real installation data from Denver and surrounding areas — including Aurora, Lakewood, Arvada, and Centennial — this calculator gives you an honest, localized estimate of what solar installation actually costs for a home like yours.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Denver gets around 300 sunny days a year, making it one of the best cities in the country for solar energy production.
- Denver homeowners can save an average of $56,000 over 25 years with solar — and leasing options are available starting at just $75/month with no upfront cost.
- Colorado offers valuable solar incentives, including Xcel Energy rebates up to $7,000, that can meaningfully reduce the cost of going solar in Denver.
Denver Electricity Prices
Electricity costs in Denver have been rising steadily — and understanding what you’re paying is the first step toward managing it.
From 2021 to 2024, Colorado’s electricity rate climbed from 13.1 to 15.1 cents per kWh — a 15.3% increase. While Colorado rates have historically stayed below the national average, that gap has been narrowing each year.
Solar gives Denver homeowners a way to generate their own electricity, reducing how much they draw from the grid. As utility rates rise, the value of that self-generated power grows alongside them.
A solar system typically comes with a 25-year panel warranty. Over that time, locking in a portion of your energy production today can provide meaningful insulation against whatever utility rates do next.
Price of Energy: Colorado vs National Average
Denver Area Utility Providers
In Denver, the primary electricity provider is Xcel Energy. Based on 2023 data, Xcel Energy’s residential rate was 14.3¢ per kWh — nearly identical to Colorado’s 2023 state average of 14.3¢ per kWh.
Xcel Energy’s rate sits below the 2023 national average of 16.0¢ per kWh. That said, electricity prices in Colorado have been rising steadily, meaning today’s rates may already be higher than what this 2023 data reflects.
Even modest electricity rates add up over time — especially as prices trend upward. For Denver homeowners exploring solar panel installation, locking in a more predictable energy cost is one of the most practical reasons to consider going solar.
Denver Utilities Electricity Rates
Colorado Solar Incentives
Denver homeowners still have access to meaningful solar incentives in Colorado — even without the federal residential tax credit, which is no longer available for new installations in 2026.
State and local programs through Xcel Energy, Black Hills Energy, Holy Cross Energy, Colorado Springs Utilities, and others offer rebates on solar panels and battery storage — helping reduce upfront installation costs for Denver-area homeowners.
For homeowners who lease solar through LightReach, Palmetto applies the commercial ITC on its end and passes those savings through as lower monthly payments — simplifying the incentive process considerably.
| 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. | |
| 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. Residents of Denver are served by Xcel Energy and are eligible to apply. 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 in Denver 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 in Denver 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.
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 Denver.
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 in Denver 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 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 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 300 sunny days and high altitude boost solar production year-round. Even snowy winters perform well. Like most U.S. cities, Denver is an excellent candidate for solar energy.
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 thousands of solar installations across Denver so you can see just how many of your neighbors have already made the switch. Explore the map below to discover which communities are leading the way in clean energy — your neighborhood might surprise you!
Leasing Solar Panels
If you’d rather not pay the full cost of solar upfront, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program — available to Denver homeowners served by Xcel Energy, United Power, Black Hills Energy, Colorado Springs Utilities, CORE Electric Cooperative, Grand Valley Power Cooperative, and DMEA. With a PPA, you pay only for the electricity your panels produce, at a fixed rate per kilowatt-hour — no large upfront investment required.
With a PPA, your monthly solar bill will vary slightly by season — higher in sunny summer months when your panels produce more, and lower in winter. Over the course of a year, though, the savings balance out. And because Palmetto owns the system, all maintenance and monitoring are handled for you. To learn more about how a PPA compares to other financing options, visit our solar buy or lease guide.
Compared to a cash purchase, a PPA means no payback period to wait through, no maintenance responsibilities, and no upfront cost to recover. You simply pay for clean energy at a predictable rate — and start saving 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 Denver. With around 300 sunny days per year and 5.6 peak sun hours daily, Denver homeowners can generate significant electricity and save an average of $56,000 over 25 years. Colorado also ranks 9th in the U.S. for residential solar installations.
The upfront cost doesn’t have to be a barrier. Palmetto’s LightReach solar lease lets Denver homeowners go solar with no money down, starting at just $75/month — so you can start saving from day one.
Yes, Denver has net metering. Most Denver-area homeowners are served by Xcel Energy, which offers 1:1 net metering — meaning excess solar energy sent to the grid earns credits at the full retail rate. Those credits roll over month to month and can offset future bills.
At year-end, Xcel customers can choose to roll credits over indefinitely or cash out at the Average Incremental Cost Rate. Other Colorado utilities serving the broader Denver area — including United Power, Black Hills Energy, and CORE Electric Cooperative — also offer 1:1 net metering with similar monthly rollover policies.
Yes, solar panels can increase your home value in Denver. According to a Zillow study, homes with solar panels sell for an average of 4.1% more than comparable homes without them. For a $600,000 Denver home, that’s roughly $24,600 in added value.
Denver’s strong solar market — driven by 300 sunny days a year and rising electricity rates — makes solar an attractive feature for buyers. Keep in mind that owned systems typically add more value than leased systems, since ownership transfers with the home.
With Palmetto’s LightReach lease, Denver homeowners can go solar for as low as $75/month with no upfront cost. Palmetto owns the system and handles all maintenance — you simply pay a fixed monthly rate and start saving right away.
For those who prefer to own their system outright, a cash purchase for an average Denver home runs approximately $19,117 (6.4 kW). Note that the federal 30% residential tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For Denver homeowners, solar can make strong financial sense — especially with a lease option. With Palmetto’s LightReach program, your monthly lease payment is typically less than what you currently pay for electricity, meaning you can start saving from day one with no upfront investment required.
Denver’s rising electricity rates and 300 sunny days a year make the long-term math compelling. Cash buyers can expect to save an average of $56,000 over 25 years, while lease customers benefit from immediate, predictable monthly savings without the wait of a payback period.
Palmetto Solar is a top choice for Denver homeowners. We’re a national company with deep local roots — completing 1,534 installations across Colorado since 2020. Denver’s 300 sunny days a year make it an ideal market, and we have the experience to back it up.
We offer some of the best financing options in the industry, including our LightReach lease starting at just $75/month with no upfront cost. Our trusted install network handles everything — from permits to activation — so going solar is simple and stress-free.
With Palmetto’s LightReach lease, Denver homeowners can go solar for approximately $75/month with no upfront cost. This estimate is based on a typical 6.40 kW system using Colorado’s production ratio of 1,346 kWh/kW/year. LightReach is an all-inclusive program — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee.
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 over cash purchases. Most Denver homeowners find the lease payment is less than their current electricity bill, so savings begin from day one.