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 is a permanent ongoing benefit that continues as long as you own the qualifying solar system and use it primarily for your home’s electricity needs.

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, wiring, control systems, and other hardware needed to generate electricity from solar energy. The exemption helps reduce the upfront cost of going solar by eliminating the state’s sales tax burden on these qualifying components.

The financial benefit varies based on your local tax rates, but you’ll save the applicable state sales tax percentage on all qualifying solar equipment purchases. The exemption applies to Colorado state sales tax and certain special district taxes like RTD and Scientific and Cultural Facilities District taxes. However, it’s important to note that this exemption does not automatically apply to city or county sales taxes 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 – only the core components that directly produce electricity from solar energy.

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 total combined incentive is capped at $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 exclusively with contractors from their Participating Solar Contractor Network. Your solar system must be at least 0.5 kW in size, use new UL-listed equipment, and meet utility interconnection standards. Battery systems require a minimum 6 kWh capacity. Systems with significant shading between 9 AM and 3 PM may receive reduced incentives and require a shading analysis.

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. In exchange for the incentive, you agree to assign the renewable energy credits from your system to Fort Collins Utilities for 20 years. This program can be combined with the 30% federal tax credit and Epic Loan financing options for additional savings.

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-sponsored incentive provides $0.10 per watt for both residential and commercial solar photovoltaic installations, making clean energy more affordable for homeowners and businesses in the San Miguel Power Association service area.

Residential customers can receive up to $300 for solar systems up to 3kW in size, while commercial customers can receive up to $1,000 for systems up to 10kW. The program also includes rebates for small wind systems at the same rate. To participate, your contractor must complete and submit the application on your behalf, and certain contractor eligibility requirements must be met. The program has deadlines that apply, so it’s important to contact SMPA Member Services at (970) 626-5549 or [email protected] early in your planning process to ensure you don’t miss out on this valuable incentive.

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 be unable to access solar 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 low-income solar programs offer rebates or credits that can significantly reduce installation costs, but the exact dollar amounts and qualification criteria would need to be confirmed directly with Xcel Energy. Interested homeowners should contact Xcel Energy directly to learn about current program availability, specific income requirements, application processes, and any funding limitations that may apply.

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 electrical grid. When you join this program, Xcel Energy can access the power stored in your home battery during times when the electric grid needs extra energy, such as during peak demand periods or emergencies.

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 situation.

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, reimburses approximately 15% of the city sales and use tax 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, then mail these forms along with your project receipts and a photocopy 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. Credits typically roll over month to month, and at the end of each year (usually in March or April), any remaining credits are either cashed out at a lower rate (ranging from 1.5 to 5.5 cents per kWh depending on your utility) or can continue rolling over indefinitely. Some utilities like Xcel Energy and Black Hills Energy give customers the choice between annual cash-out or indefinite rollover, while others automatically cash out credits annually. It’s important to note that if you choose indefinite rollover and later move homes, you’ll forfeit any unused credits, so the cash-out option may be better for customers planning to relocate.