Solar Panels Cost $2.5k-$12k in Colorado Springs, CO | April, 2025

Lendkey and the Elevations Credit Union are providing residential Xcel Energy customers with specialized loans to fund energy efficiency improvement projects beyond the scope of existing rebates. LendKey's Home Energy Efficiency Loan (HEEL) is available in the entirety of Xcel's Colorado service area. The loan carries low interest rates, instant approval, and access to qualified energy contractors. The Elevations Energy Loan (EEL) is only available in Denver and Boulder County. The loan includes access to an EnergySmart Advisor who can coach homeowners through the project process, maximize rebates and incentives, and arrange necessary work on the homeowner's behalf.

"With Efficiency, Conservation, and Renewable Energy," or WE CARE, is a program Holy Cross Energy manages to incentivize on-site renewable energy adoption. Residential or commercial customers installing a new solar PV, wind, hydroelectric, biomass, or geothermal system may qualify for financial rebates under the program. Incentive amounts are based on system capacity relative to four different tiers. The lowest tier, for systems up to 6 kW, yields a $500 flat rebate. Additional flat amounts are available as capacity rises above the later thresholds. Qualifying systems must be interconnected to the grid under a net metering arrangement. To apply, the customer should file a Generator Interconnection Application prior to the start of installation work. They may then choose a HCE-certified contractor to perform the installation. Additional program information is available from the Holy Cross Energy website.

Communities in the Xcel Energy Colorado service area are incentivized to develop community solar gardens through the Solar*Rewards initiative. Their current goal is to use the program to add 6.5 - 30 MW of renewable energy to their grid annually. As a community uses its CSG, they will sell the Renewable Energy Credits they generate to Xcel. An incentive applied to subscribers' bills serves as compensation for these RECs. Incentive amounts are by the kilowatt hour and vary depending on CSG capacity. Colorado's state REC program changes from year-to-year, which will affect REC prices. Eligible CSGs must have 10 subscribers under 1 kW minimum plans, with at least 5% of subscribers meeting low-income qualifications (not subject to the 1 kW minimum.) Additional information is available from the Xcel website.

Residential and small business customers of the La Plata Electric Association may be entitled to rebates on new solar photovoltaic, wind, or hydroelectric power generation systems. Incentive amounts vary depending on system capacity relative to a 10 kW threshold. Systems rated below the threshold receive a flat incentive based on capacity and estimated cost savings. Systems above the threshold receive a performance-based incentive. Qualifying solar systems must be installed by an LPEA certified contractor. Upon installation and final inspection by LPEA and any relevant authorities, incentives will appear as a recurring payment every six months for the first ten years of the system's life. Additional program information and application paperwork is available from the La Plata Electric Association website.

Colorado Springs Utilities customers who elect to install a new interconnected solar photovoltaic system may be entitled to a rebate. Incentive amounts are based on expected system performance in the area of installation, taking into account surrounding shade and the tilt of the panels. CSU will earn Renewable Energy Credits from the system's usage, a portion of which will be credited back to the customer. CSU uses standards from the California Energy Commission to determine which system components meet incentive standards. Minimum warranty requirements also apply. Further information and application paperwork are available from the Colorado Springs Utilities website.

C-PACE is Colorado's statewide property-assessed clean energy assistance program. Through the program, home or business owners may access an "open market" of lenders to fund up to 100% of clean energy-related project costs. County governments are charged with servicing C-PACE loans through a special property tax assessment. Energy savings will typically exceed the extra amount assessed, and by structuring the loans in this way, payments will be tied to the property rather than the owner. As of 2016, access to C-PACE is available in Arapahoe, Broomfield, Denver, Eagle, Garfield, Jefferson, Mesa, Pitkin, Pueblo, and Summit Counties. Additional information is available from the C-PACE website.

Residential and commercial solar customers with Black Hills Energy may be entitled to financial incentives by using their new solar PV system. Qualifying systems must not exceed a rating of 500 kilowatts. Incentives are performance-based and will be derived from the Renewable Energy Credits BHE earns for the specific system under state law. Funding will therefore vary from year to year, and participation in the incentive program is capped. New photovoltaic installs must be undertaken by contractors with certifications from BHE and the North American Board of Certified Energy Practitioners. Additional program information is available from the Black Hills Energy website.

NOTE: This incentive is not available as of January 2021. In the state of Colorado, community solar gardens are taxed as locally-assessed properties. A 2015 law passed by the Colorado State Assembly created certain partial tax exemptions based on a CSG's AC capacity attributable to certain subscribers, including residential, municipal, and property tax-exempt customers. The incentives lasted for six tax years and expired January 1, 2021.

The state of Colorado offers various residential property tax exemptions for solar and other renewable energy equipment. Equipment owned by the property owner and used for self-consumption is exempt from state property taxes, as are larger solar generation facilities below a capacity of 100 kW. Technologies such as geothermal and biomass which generate energy for off-site consumption are state-assessed. Most residential solar panels and residential/agricultural wind turbines are considered locally-assessed property.

Xcel Energy residential and commercial customers may be entitled to financial rebates through the Solar*Rewards program if they install a new interconnected solar photovoltaic system on their property. As customers use their PV systems over a 20-year period, they will sell the Renewable Energy Credits they generate to Xcel. The incentive serves as compensation for these RECs. Incentive amounts are by the kilowatt hour and vary depending on system capacity and the type of property. Colorado's state REC program changes from year-to-year, which will affect price per REC. Since systems under Solar*Rewards must be interconnected, customers may take advantage of net metering credits to supplement the Solar*Rewards incentives. Funding for the program is allocated on a monthly basis, and program applications are accepted on a first-come, first-served basis; therefore, interested customers are recommended to apply promptly. Application paperwork is available from the Xcel Energy website.

The state of Colorado provides for several sales/use tax exemptions on renewable energy equipment. Beginning in the 2006 tax year, any component used to generate, store, or distribute AC electricity using renewable technology is completely exempt from state sales/use tax. From the 2009 - 2017 tax years, all components used to generate, store, or distribute electricity as part of a solar thermal system are completely exempt from state sales/use tax. From the 2014 - 2019 tax years, all components used to generate, store, or distribute electricity as part of a biomass system are completely exempt from state sales/use tax. For any of these exemptions, county and municipal sales/use tax may still apply. Localities may choose to implement their own exemptions on green energy system components.

Commercial customers of Colorado Springs Utilities may be entitled to any of a series of water and energy efficiency equipment rebates. Incentive amounts vary based on the type of equipment installed. For renewable energy equipment, rebates will be based on total system capacity or estimated cost savings. For energy-efficient building materials and appliances, rebates will be based off estimated efficiency gain. During the application process, customers may choose from a variety of approved contractors. Further information on the application process may be found on the CSU website.

The state of Colorado has held itself to a renewable portfolio standard (RPS) since Amendment 37 was approved by voters in 2004; they were the first state to adopt such a policy. Current RPS procedures require each retail electric utility to source a certain percentage of its energy from renewable means. The actual percentage will depend on each utility's ownership and the size of their service area. Solar, wind, geothermal, biomass, hydroelectric, and synthetic gas are just a few of the technologies utilities may use to meet the standard. Annual compliance reports from each utility are made publicly available via the Colorado Public Utilities Commission.

Through the Renewable Energy and Energy Efficiency for Schools (REEES) program, the state of Colorado offers school districts funding assistance to build renewable energy and water efficiency systems, purchase efficient buses, and conduct other green building and procurement projects. Districts that qualify may take out low-interest loans up to $1 million with a maximum 15-year payment term. Charter schools are also eligible for funding assistance, but they must use the school district as a middleman rather than having funds disbursed directly to them. There are two application periods annually with uniform submission deadlines: one ending April 30th and one ending October 31st. The application committee will consider various criteria during the review process which are publicly available on the state Energy Office website. After the district receives loan funding, it must publish progress reports on a quarterly basis.

Throughout their terms, Colorado governors Bill Owens, Bill Ritter, and John Hickenlooper implemented mandatory environmental standards for state government property and entities to follow. Initiatives established under each governor's executive orders include auditing agency sustainability practices, lowering consumption of paper and plastic bottles, expanding recycling and composting, investing saved energy costs in sustainability programs, and establishing building standards for new state capital construction and remodeling projects. Additional information is available from the Colorado website.

The Colorado Energy Office has established the Green Colorado Credit Reserve (GCCR) as a loss reserve incentive to private banks and lenders in the state. Individual loans of up to $250,000 for energy efficiency improvements on commercial property qualify. In the event a property owner defaults on their loan, GCCR funds can cover institutional losses on up to 15% of the total amount. The CHFA keeps a database of participating lenders and manages new applications. Institutions considering GCCR participation may apply to join if they meet prescribed guidelines.

Colorado HB 1342 established provisions for "community solar gardens" (CSGs) managed by investor-owned utilities. The current maximum capacity for a CSG is five megawatts. Capacity limits will increase to ten megawatts in July of 2023. The law also standardizes subscriptions to CSGs throughout the state. Subscribers to CSGs must be located in the same utility service area as the CSG itself (previously, both the garden and subscriber were required to be in the same county). The minimum subscription is for 1 kW of power capacity at the total aggregate retail price. Total subscribed capacity cannot exceed the customer's average annual consumption by 120%.

In Colorado, renewable energy systems and facilities rated under 2 MW are considered locally-assessed property for tax purposes. Local assessors should use approaches outlined by the state assessor, using cost, sales comparison, and income. Green energy systems rated for over 2 MW, as well as hydroelectric, geothermal, and biomass facilities rated for any capacity, are considered state-assessed property. They are taxed at the same rates and schedules as non-renewable energy systems. Nonrenewable comparison value for state-assessed renewable energy systems is determined on an annual basis and takes into account the past five years of rates.

Homeowners enrolling in the Residential Energy Upgrade (RENU) program may be eligible for specialized loans to fund energy efficiency improvement projects. The program is administered by the Colorado Energy Office with loan servicing through Elevations Credit Union. Interested homeowners will consult with a RENU advisor to determine eligible projects and obtain quotes. They may choose from a variety of eligible contractors to perform necessary work, but they must become a member of Elevations Credit Union to apply for the loan. Additional information is available from the Colorado Energy Office website.

As a "home rule" state, Colorado does not have an energy code; however, the state government has set energy efficiency standards for public-sector buildings to follow. While adoption of these standards is voluntary for local governments, the state does incentivize cities and counties to implement them with grant funding. Any Colorado city or county with its own set of building codes has historically been required to comply with different versions of the International Energy Conservation Code by 2008 at the latest. Currently, localities must enforce state residential codes. For example, the state requires single-family home builders to offer rooftop solar PV/water heating and other energy-efficient systems and appliances as an add-on option. At the very least, new homes should have the proper infrastructure to accommodate a future solar system, and the builder should provide the customer with a directory of area solar contractors.

Residential customers of Colorado Springs Utilities may be entitled to any of a series of water or energy efficiency equipment rebates. Incentive amounts vary based on the type of equipment installed. For renewable energy equipment, rebates will be based on total system capacity or estimated cost savings. For energy-efficient building materials and appliances, rebates will be based off estimated efficiency gain. During the application process, customers may choose from a variety of approved contractors. Further information on the application process may be found on the CSU website.