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, but the system must meet all criteria to maintain the exemption. It’s worth noting that while your solar equipment won’t be taxed, some counties may still need to account for solar systems when evaluating comparable home sales for property assessment purposes.

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 covers 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 devices like batteries, or remote monitoring systems, and only applies to components up to the generator step-up transformers at your property.

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 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 cannot be excessively shaded between 9 a.m. and 3 p.m., and you must agree to manage trees or other shading sources. In exchange for the rebate, you’ll assign the renewable energy credits from your system to Fort Collins Utilities for 20 years.

Important timing considerations include completing installation within six months of receiving your rebate reservation letter. The rebate is paid as a check after your system passes final utility inspection. This program works alongside the 30% federal tax credit, which is available for solar systems installed before 2033, providing additional savings on your solar investment.

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

Residential customers can receive up to $300 (for systems up to 3kW), while commercial customers can receive up to $1,000 (for systems up to 10kW). The rebate application must be completed by your solar contractor on your behalf, and contractors must meet certain eligibility requirements. Important deadlines apply to this program, so it’s essential to work with your installer to submit applications promptly. For questions about the program or to learn about additional renewable energy incentives including small hydro and biomass options, contact SMPA Member Services at (970) 626-5549 or [email protected].

The Xcel Energy Solar* Rewards Program – Low Income is a utility-sponsored incentive 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 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 programs like this offer rebates or credits that can significantly reduce installation costs for qualifying households. 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 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 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 contributing to this shared energy network.

Unfortunately, the official program details including specific payment rates, eligibility requirements, and enrollment deadlines are not accessible from the provided source. To get complete information about financial benefits, qualification criteria, and any time limitations, homeowners should contact Xcel Energy directly or visit their website. This type of battery incentive program typically requires you to have both solar panels and a compatible battery storage system installed at your home, and participation usually involves allowing the utility to access your battery during certain peak demand periods.

The City of Boulder Solar Tax Rebate program helps residents and businesses save money on their solar installations by providing a rebate on city sales and use taxes. This local incentive, established in 2008, rebates approximately 15% of the city sales and use tax you paid on materials and permits for your solar electric or solar thermal (hot water) system.

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, 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 power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill at a 1:1 rate – meaning each kilowatt-hour (kWh) you send to the grid offsets one kWh you use from the grid at full retail value.

The financial benefits and credit handling vary by utility company across Colorado. Most utilities allow you to carry credits forward month to month, and at the end of each year (typically in March or April), you’ll have options for any remaining excess credits. Some utilities like Xcel Energy and Black Hills Energy offer two choices: roll credits over indefinitely or cash them out at a lower rate (around 1.5-2 cents per kWh). Other utilities like United Power, CORE Electric, and DMEA automatically cash out excess credits annually at rates ranging from 3-5.5 cents per kWh. Colorado Springs Utilities offers the highest cash-out rate at 2 cents per kWh.

Net metering is generally available to residential customers who install qualifying solar energy systems, though specific eligibility requirements and system size limits may vary by utility. The program operates on your existing electric meter, which runs backward when you’re generating excess power. Keep in mind that if you choose the indefinite rollover option with some utilities, you’ll forfeit any remaining credits if you move, and you’ll never receive cash payments from your utility company.