Colorado solar incentives: what you need to know

Solar Power

So far there’s enough solar power infrastructure installed in Colorado to power over 304,000 homes. Would you like to add your home, or business to the list?

Thanks to the popularity of sustainable energy, Colorado solar prices have fallen by 43% in recent years, so now’s the time to get on board.

Do you want to power your home or business with clean, renewable energy? Would you like to cut your electricity bills down to almost nothing?

Here’s what you need to know about going solar in Colorado.

Is Colorado a Good Place for Solar Power?

Colorado’s one of the sunniest states in the United States, with over 300 days of sunshine a year, so it’s ideal for harvesting power from the sun’s rays.

The Centennial State has committed to becoming 100% solar-powered by 2050. As such, the state has a few measures in place to sweeten the deal for its residents.

Colorado Solar Incentives
When you decide to embrace solar energy in Colorado, there are five ways to save. These are:

Federal Tax Incentives
This nationwide benefit applies to all homes and businesses that install solar during 2021. Through this, you can deduct 26% of the cost of your solar installation from your income tax this year. There’s no cap on how much you can save.

The ITC (Investment Tax Credit) only applies when you buy your solar panels in cash or with a solar loan. You must have enough income so you achieve meaningful savings via the tax credit.

Colorado Utility or City Incentives
These solar incentives allow you to save thanks to incentives offered by various organizations and power companies. These include rebates on your solar panels or a per-kilowatt incentive for going solar.

State Sales Tax Exemption
When you live in Colorado, you won’t pay sales tax when you buy solar panels, either. This sales tax exemption applies to all renewable energy equipment purchased in the state.

State Property Tax Exemption
When you install solar power in your home, its value increases. That means, your property taxes should increase, right?

Not in Colorado. Residents of this state will continue paying the same property tax as they did before the installation.

Power Purchasing Agreements and Net Metering
When you engage in a PPA or net metering arrangement, you help your solar provider generate power to sell to their customers.

In return, they give you electricity at a greatly reduced rate. There’s a lot of competition among power companies to lure more solar customers their way, so you can find some great ways to save when you go his route.

Moving Forward With Solar

Colorado is also one of the first states to embrace community solar. This means you can benefit from Colorado solar power without installing any panels, or even owning a house.

These systems use an off-site community solar array to power entire neighborhoods. It’s a great way to save on installation costs and electricity bills at the same time.

Would you like to discover more ways to save in your everyday life? Browse our blog for interesting snippets on a wide range of topics.

 

Share this Article