Fort Collins, CO Solar Panels

Colorado law (§ 39-3-102, C.R.S.) exempts independently owned residential solar electric generation facilities from property taxation. This means that even though adding solar panels increases your home’s market value, the added value from the solar system will not be included in your property tax assessment — saving you money every year you own the system.

To qualify, the solar system must be located on residential real property, used to produce electricity from solar energy primarily for use in that residence, and have a production capacity of no more than 100 kilowatts (AC). The exemption applies to the renewable energy equipment itself, not the underlying land or home structure.

This is an automatic, ongoing benefit — there is no application required. As long as your system meets the eligibility criteria, you are entitled to the exemption. It is one of the easiest and most valuable long-term financial benefits of going solar in Fort Collins, Colorado.

Colorado offers a 100% exemption from the state’s 2.9% sales tax on the purchase of residential solar system equipment. This exemption applies at the point of sale, meaning you simply won’t be charged state sales tax when you buy qualifying solar components — no rebate application or reimbursement process is needed.

The exemption covers state-administered special district sales taxes but does not apply to most state-administered city and county sales taxes. On a typical 5 kW solar system costing around $15,000, the state sales tax exemption could save you approximately $435 or more.

This benefit is available to all Colorado homeowners purchasing solar equipment, regardless of income. It stacks well with other incentives such as utility rebates and the state battery storage tax credit, helping to further reduce your total out-of-pocket cost.

Colorado’s Residential Energy Storage System Tax Credit allows homeowners to claim a 10% state income tax credit on the purchase of a qualifying home battery backup system. The credit applies to the cost of battery components, sales tax, and shipping — and is not reduced by any utility rebates you may also receive. The credit is available for tax years 2023 through 2026.

To qualify, the energy storage system must be installed in a residential building in Colorado and meet minimum capacity requirements (at least 3 kWh). The credit is filed using Colorado Form DR-1307 when you submit your state income tax return for the year the system was installed.

For example, if your battery storage system costs $10,000 (including tax and shipping), you could receive a $1,000 state tax credit. This credit can be combined with utility battery rebates (such as the City of Fort Collins Utilities Battery Rebate) to maximize your total savings on battery storage.

Colorado’s net metering policy is one of the strongest in the nation. When your solar panels produce more electricity than your home uses, the excess energy is sent back to the grid and your utility credits your account at the full retail electricity rate — meaning each kilowatt-hour (kWh) you export is worth the same as a kWh you would otherwise purchase. This significantly improves the financial return on your solar investment.

Net metering applies to all regulated utilities and electric cooperatives in Colorado (excluding small municipal utilities). Credits accumulate on your bill and roll over from month to month. If you end the year with a net surplus of credits, your utility is required to reimburse you for those excess credits, or you may opt to roll them over to the following year.

For residents of Fort Collins, net metering is available through City of Fort Collins Utilities for systems producing up to 200% of your annual electricity usage.

Customers of City of Fort Collins Utilities can receive a rebate of $300 per kW for a new residential solar installation, up to a maximum of $1,500. For battery storage, the rebate is $300 per kWh of capacity, up to $6,000. The combined maximum rebate for both a new solar system and battery storage together is $7,500. Systems must be at least 500 watts to qualify.

Fort Collins Utilities is one of the few Colorado utilities currently offering active solar and battery incentives in 2026. The program is available to residential electric customers within the Fort Collins Utilities service territory. Commercial customers may also be eligible for a separate solar rebate of up to $50,000.

These rebates can be combined with the Colorado state battery storage tax credit (10%) and the Colorado solar sales and property tax exemptions to significantly reduce the total cost of a solar-plus-storage system. Customers should apply through Fort Collins Utilities and confirm current funding availability before purchasing equipment.

Tesla is offering a limited-time manufacturer rebate of $500 per Powerwall 3 unit installed, with a maximum rebate of $1,000 per address (covering up to 2 units). Both the Powerwall 3 and Powerwall 3 Expansion Units are eligible for this rebate. This offer is available to Colorado homeowners as part of a broader national promotion.

To qualify, homeowners must register for the rebate by March 31, 2026, and complete the installation by September 30, 2026. Missing either deadline will disqualify the system from receiving the rebate, so it is important to plan your installation timeline accordingly.

This Tesla manufacturer rebate can be stacked with other Fort Collins incentives, including the City of Fort Collins Utilities Battery Rebate, the Colorado state 10% battery storage tax credit, and any applicable utility rebates. Combining these incentives can significantly reduce the net cost of a Powerwall 3 installation.

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. Homeowners can borrow up to $75,000 with no down payment required, a fixed monthly payment, and no prepayment penalty.

Loan terms extend up to 20 years, and interest rates are set below market rates, making this one of the most affordable solar financing options available in Colorado. The program is supported by the Colorado Clean Energy Fund, a nonprofit organization with ties to the state government, ensuring its mission is focused on expanding clean energy access rather than profit.

The RENU Loan is available to Colorado homeowners who own their home and is designed to work alongside other incentives. For example, homeowners in Fort Collins could use the RENU Loan to finance your solar system while still claiming the Colorado property tax exemption, sales tax exemption, and any applicable utility rebates — reducing both your upfront costs and your long-term financing burden.

The Colorado Solar for All (COS4A) program was funded through a $156 million award from the U.S. Environmental Protection Agency (EPA) under the Solar for All competition, established by the federal Inflation Reduction Act of 2022. The Colorado Energy Office administers the program, which is designed to expand rooftop solar adoption among low-income, underserved, and environmental justice communities across the state.

The program works with competitively selected industry partners to deliver, install, operate, and manage solar assets for eligible households. The goal is to reduce energy costs and improve energy resilience for Coloradans who have historically had limited access to solar energy benefits.

Note: The Colorado Solar for All Single Family 100% Subsidy Program (SF100) is currently on hold as of 2026. Interested households should monitor the Colorado Energy Office website for updates on program availability, eligibility requirements, and how to apply when the program resumes accepting applications.