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 requirements to maintain the exemption. Keep in mind that this exemption is automatic for qualifying systems, but you should verify with your local county assessor that it’s being properly applied to avoid any unexpected property tax increases.

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 necessary hardware 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 systems like batteries, or remote monitoring equipment.

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 energy systems, making clean energy more affordable for local residents.

The financial benefits include $200 per kilowatt of solar capacity installed (up to a maximum of $1,000 for solar) and $150 per kilowatt-hour of battery storage capacity (up to $3,000 for batteries). The combined maximum rebate is $4,000 per home. For example, a typical 5-kilowatt solar system would earn the full $1,000 solar rebate. These rebates are provided as checks mailed after the system passes final inspection.

To qualify, you must be a Fort Collins Utilities electric customer and work with one of their approved Participating Solar Contractors. Your solar system must be at least 500 watts in size and meet utility interconnection standards. The system must be installed within six months of receiving your rebate reservation letter. In exchange for the rebate, you agree to assign the renewable energy credits from your system to Fort Collins Utilities for 20 years.

Important considerations include ensuring your roof has good sun exposure from 9 AM to 3 PM, as shaded systems may receive reduced rebates if they produce less than 90% of optimal output. Fort Collins Utilities recommends completing a home energy efficiency assessment before installing solar to maximize your investment. The program also offers on-bill financing through Epic Loans and works alongside the 30% federal tax credit for solar installations.

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 program provides financial incentives for both residential and commercial customers who want to invest in renewable energy within SMPA’s service area in Colorado.

Residential customers can receive $0.10 per watt for solar photovoltaic systems, with a maximum rebate of $300 (capped at 3kW systems). Commercial customers receive the same rate of $0.10 per watt but can qualify for up to $1,000 in rebates (capped at 10kW systems). The program also includes rebates for small residential wind systems at the same rate and maximum as residential solar.

To qualify for these rebates, customers must work with contractors who complete all necessary paperwork and submit applications on behalf of the customer. While contractors don’t need to pre-register with SMPA, they must meet certain eligibility requirements. Applications have deadlines that must be met, so it’s important to apply promptly after installation. For questions about the program or to learn about additional renewable energy options like small hydro and biomass systems, customers can 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, so specific details about the financial benefits, exact eligibility requirements, and program deadlines are not available at this time. Typically, utility low-income solar programs offer rebates, reduced rates, or special financing options, but homeowners should contact Xcel Energy directly to learn about current incentive amounts, income qualification thresholds, and application processes. It’s important to verify program availability and requirements, as utility incentive programs often have limited funding and may have waiting lists or specific enrollment periods.

The Xcel Energy Solar* Rewards Program – Renewable Battery Connect is a utility program that pays Colorado homeowners for allowing Xcel Energy to use their home battery storage systems during times of high energy demand. When you install a qualifying battery system with your solar panels, Xcel can remotely access stored energy from your battery to help balance the electrical grid during peak usage periods.

Unfortunately, the official program details including specific financial benefits, eligibility requirements, and deadlines are not accessible from the provided source. To get complete information about payment rates, battery system requirements, enrollment deadlines, and participation terms, homeowners should contact Xcel Energy directly or visit their website. This type of program typically offers monthly or annual payments in exchange for allowing the utility to dispatch energy from your battery when needed, while still ensuring you have backup power for your home.

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, allows property owners to get back approximately 15% of the city sales and use tax they paid on materials and permits for their solar installation.

To qualify for this rebate, you must be a Boulder resident or business owner who has completed a solar installation 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 system. 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 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 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 rates.

The financial benefits and credit handling vary by utility company. Most Colorado utilities allow you to carry credits forward month to month, but handle annual excess credits differently. Xcel Energy and Black Hills Energy offer two options: roll credits over indefinitely (recommended for maximum value) or cash out annually at around 1.5 cents per kWh. Other utilities like United Power, CORE Electric, and DMEA automatically cash out remaining credits once per year at rates ranging from 2-5.5 cents per kWh. Colorado Springs Utilities offers both rollover and cash-out options at 2 cents per kWh.

Important considerations include that most utilities conduct annual true-ups between March and April, and some have specific rules for time-of-use customers. If you choose the rollover option with certain utilities, you’ll forfeit unused credits if you move. Net metering is generally available to residential customers with solar installations, though specific eligibility requirements and system size limits may vary by utility company.