Solar Guide
Solar in Pueblo
Pueblo residents are discovering that solar installation offers a smart path to energy independence. With Colorado’s electricity prices jumping 22% from 2020 to 2024, homeowners are looking for reliable alternatives to rising utility costs.
This comprehensive guide covers everything you need to know about solar panels for your home in Pueblo, from local incentives to installation considerations specific to southern Colorado’s unique climate and conditions. We’ll walk you through the entire process step by step.
Key Takeaways
- Pueblo’s abundant sunshine creates excellent solar conditions with systems producing over 50 kWh daily during peak summer months.
- Federal tax credits save Colorado homeowners 30% on solar installations, reducing a typical system cost by thousands of dollars.
- Solar panels provide long-term protection from rising electricity rates while generating predictable energy costs for 25+ years.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Pueblo neighborhoods like Belmont, East Pueblo, and Bessemer. Get accurate pricing estimates based on actual local projects, not generic estimates from other companies.
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Cost
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Pueblo Electricity Prices
Understanding Pueblo’s electricity costs helps homeowners make informed decisions about their energy future and monthly budgets.
Colorado’s electricity rates have climbed from 13.1 cents per kWh in 2021 to 15.1 cents in 2024, representing a 15% increase over just three years.
Solar panels generate electricity at a fixed cost, helping homeowners avoid future rate increases while producing clean energy directly from their rooftops.
Over 25 years, solar systems can provide predictable energy costs, protecting families from decades of utility rate fluctuations and inflation impacts.
Price of Energy: Colorado vs National Average
Pueblo Area Utility Providers
Pueblo residents primarily receive electricity from Xcel Energy, which charged 14.30¢ per kWh in 2023. This rate sits below the national average of 16.0¢ per kWh that year.
Colorado’s electricity rates remain competitive due to abundant natural gas resources and wind energy development. However, utility rates continue rising annually, with infrastructure upgrades driving costs higher.
Even with below-average rates, solar can provide long-term price stability. Solar panels generate consistent savings over 25+ years, protecting homeowners from future utility rate increases.
Pueblo Utilities Electricity Rates
Colorado Solar Incentives
Pueblo homeowners can significantly reduce solar installation costs through federal tax credits and solar incentives in Colorado.
Federal incentives include the 30% Investment Tax Credit, while Colorado offers property and sales tax exemptions. Local utilities provide additional rebates and net metering programs.
These incentives change frequently and have specific requirements. Research current programs thoroughly to maximize your potential savings.
$5,735
Average savings in Colorado solar rebates
Incentive | Type | Description | Source |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Property Tax Exemption | State tax exemption | Prevents property tax increases from adding solar panels (and increasing the value of your property). | Learn More |
Sales Tax Exemption | State tax exemption | Eliminates state sales tax on solar equipment purchases. Calculated as 2.9% of equipment cost. | Learn More |
Fort Collins Solar Rebates | Utility program | Fort Collins Utility customers can receive up to $1,500 in rebates for solar and $3,000 in rebates for a battery. | Learn More |
San Miguel Power Association Solar Rebates | Utility program | SMPA customers can receive up to $300 in rebates for solar. | Learn More |
Xcel Energy Solar* Rewards Program – Low Income | Utility program | $1.00/watt upfront rebate for income-qualified households (up to $7,000). Must meet income requirements (~80% of area median). | Learn More |
Xcel Energy Solar* Rewards Program – Renewable Battery Connect | Utility program | When the grid is strained, Xcel can tap into your home battery to draw power. $100 yearly payout + $350/kW AC withdrawn (up to $5,000) | Learn More |
City of Boulder Tax Rebates | City program | Boulder residents receive approximately 15 percent of the city sales and use tax paid on materials and permits for the solar installation. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
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 only applies to the solar equipment itself – not your underlying property. There are no specific deadlines mentioned, and the exemption appears to be ongoing as long as you meet the requirements. It’s worth noting that this exemption is automatic for qualifying systems, but you should verify with your local county assessor that the exemption is being properly applied to avoid paying unnecessary property taxes on your solar investment.
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 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 must have minimal shading between 9 a.m. and 3 p.m., and you’ll need to agree to manage trees or other shade sources. In exchange for the rebate, you 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. Keep in mind that systems producing less than 90% of optimal output due to shading may receive reduced incentive rates. This program works alongside the 30% federal tax credit, which remains available through 2032, 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-sponsored incentive provides $0.10 per watt of installed solar capacity to make clean energy more affordable for homes and businesses in SMPA’s service territory in Colorado.
Residential customers can receive up to $300 (capped at 3kW systems), while commercial customers can receive up to $1,000 (capped at 10kW systems). The rebate application must be completed by your solar contractor on your behalf, and contractors must meet certain eligibility requirements. SMPA also offers similar rebates for small wind systems at the same rate structure. Contact SMPA Member Services at (970) 626-5549 or rebates@smpa.com for more information, as deadlines do apply for these rebate applications.
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 the exact terms would need to be confirmed directly with Xcel Energy. Interested homeowners should contact Xcel Energy directly to learn about current program availability, income qualification thresholds, application processes, and any waiting lists or 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 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 available from the provided source due to a website loading error. To get complete information about financial benefits, qualification criteria, and application deadlines, homeowners should contact Xcel Energy directly or visit their website. This type of battery incentive program typically requires customers to have both solar panels and a compatible battery storage system installed, and may have specific technical requirements for participation.
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 forms, then mail them 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. These credits can then be used to offset electricity you consume 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 you send to the grid. Excess credits typically roll over month to month, and at the end of each year (usually in March or April), you have options for remaining credits. Some utilities like Xcel Energy and Black Hills Energy let you choose between cashing out excess credits at a lower rate (around 1.5-4 cents per kWh) or rolling them over indefinitely. Other utilities automatically cash out excess credits annually at rates ranging from 2-5.5 cents per kWh. Time-of-use customers with Grand Valley Power have more complex rules based on peak and off-peak periods, with different thresholds for credit accumulation and payout.
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 QuotePueblo 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.
Pueblo’s high altitude and abundant sunshine create excellent solar conditions year-round. Despite occasional snow, proper system design maximizes energy production in Colorado’s climate.
Solar Production in Pueblo 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 17 hours AND power all other appliances
- or Fully charge 5.3 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2.2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 16 hours
- or Fully charge 3.2 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 12 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 200 trees
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 Installations in Pueblo
We’ve mapped every solar installation across America to show you something exciting: your Pueblo neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.
Leasing Solar Panels
Palmetto offers Power Purchase Agreements (PPAs) for Pueblo homeowners, providing an alternative to purchasing solar panels outright. With a PPA, you pay for the electricity your solar system generates at a fixed rate per kilowatt-hour, rather than making a large upfront investment.
PPAs are available throughout Colorado, including for customers of Xcel Energy, Black Hills Energy, and other major utilities serving the Pueblo area. This financing option eliminates upfront costs, includes system maintenance and monitoring, and provides immediate savings on your electricity bills without the responsibility of system ownership.
Unlike purchasing solar panels with cash, a PPA requires no initial investment and includes comprehensive maintenance coverage. Your solar provider handles all repairs, cleaning, and system optimization, ensuring consistent performance throughout the agreement term. Learn more about solar financing options or explore our LightReach program for additional details.
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!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Pueblo. The city receives abundant sunshine year-round, creating ideal conditions for solar energy production. Colorado’s high altitude and clear skies help solar panels generate consistent electricity throughout the year.
Financial benefits make solar attractive for Pueblo homeowners. With electricity rates rising 22% from 2020-2024, solar provides protection from future rate increases. The 30% federal tax credit and Colorado’s property tax exemption significantly reduce upfront costs, while net metering allows you to earn credits for excess energy production.
Yes, Pueblo has net metering through multiple utility providers. Most residents receive service from Xcel Energy, which offers 1:1 net metering where you receive full retail rate credit for excess solar electricity sent to the grid.
Excess credits roll over month-to-month and you have options at year-end. You can either cash out remaining credits at around 1.5 cents per kWh or roll them over indefinitely. Rolling over credits provides better value since you use them at full retail rates later.
Yes, solar panels increase home value in Pueblo, CO. According to a Zillow study, solar panels increase home value by 4.1% on average across the United States. For a typical Pueblo home valued at $300,000, this translates to approximately $12,300 in added value.
Colorado’s property tax exemption makes this benefit even more attractive. While your home’s value increases with solar panels, you won’t pay additional property taxes on that increased value. This means you gain equity without the ongoing tax burden, making solar an excellent long-term investment for Pueblo homeowners.
Solar costs in Pueblo typically range from $10,459 to $17,419 after federal tax credits. A 6.4 kW system (sized for medium homes) costs approximately $13,382 after the 30% federal tax credit, down from $19,117 before incentives.
System size determines your total investment. Small homes need 4.8 kW systems ($10,459), while large homes require 8.6 kW systems ($17,419). Colorado’s property and sales tax exemptions provide additional savings on your solar installation.
Yes, solar is financially worth it for most Pueblo homeowners. With average 25-year savings of $58,429 and payback periods around 7.5 years, solar provides strong long-term returns. The 30% federal tax credit and Colorado’s property tax exemption significantly reduce upfront costs.
Rising electricity rates make solar even more valuable. Colorado rates increased 22% from 2020-2024, while solar locks in predictable energy costs for 25+ years. Monthly savings of $134 help offset your investment while protecting against future utility rate increases.
We believe Palmetto Solar offers the best combination of experience and service for Pueblo homeowners. As a national company with local focus, we’ve completed 1,534 installations across Colorado since 2020, giving us deep expertise in the state’s unique solar conditions and regulations.
Our comprehensive approach sets us apart. We offer some of the industry’s best financing options and work with a trusted network of local installers who understand Pueblo’s climate and permitting requirements. This combination ensures quality installations backed by national resources and local knowledge.