A solar installation is more affordable than ever, with several solar rebate programs available.
The Federal Residential Solar Energy Credit rewards homeowners for investing in solar installations. With this, you can claim a percentage of the cost of installing solar panels and other renewable energy systems as a tax credit on your federal income taxes.
In August 2022, this federal solar investment tax benefit increased to 30% for installations; this benefit is available until 2032. In 2033, the benefit drops to 26%, and by 2034, it lowers again to 22%.
There’s no maximum amount you can claim, so the more you invest, the greater your potential tax credit.
Your installation must be between January 1, 2017, and December 31, 2034, and it needs to be installed at your residential property. The benefit applies to US properties only, and the credit only applies to the original installation.
You must own the solar panel system; leasing or paying a solar company for generated electricity isn’t eligible. More information can be found on the US Department of Energy site.
The credit covers the cost of solar panels or cells, excluding attic fan costs, contractor labour costs, energy storage devices, and sales taxes. It also includes some other necessary equipment, such as wiring, inverters, and mounting equipment.
In addition to the federal incentive, there are several Colorado solar incentives.
Another important incentive is the Sales and Use Tax Exemption for Renewable Energy Equipment, which exempts all Colorado homeowners from the state’s 2.9% sales tax when investing in solar panels or other qualifying technologies.
The Property Tax Exemption for Residential Renewable Energy Equipment ensures that when you add a solar panel system to your home, your local municipality won’t increase your property taxes, although your home value is increasing.
The Colorado Residential Energy Upgrade (RENU) Loan program is accessible to residents throughout the state. It offers low-interest financing options for various home upgrades, including solar panel systems.
With loans of up to $75,000 and a 20-year repayment period, you can implement energy-efficient measures and solar panels without upfront costs. This initiative is funded by the Colorado Clean Energy Fund partnering with local credit unions.
Net metering is a system that allows homeowners with solar panels to generate their electricity and sell any surplus back to the grid. Here’s how it works: when solar panels produce more electricity than is consumed, the excess is fed into the grid, and homeowners receive credits on their utility bills. If your panels aren’t producing enough energy for your needs temporarily, you can draw electricity from the grid using these credits.
This system reduces or eliminates homeowners’ electricity bills, providing a strong financial incentive for solar panel adoption. It helps them recoup their initial investment faster by offsetting upfront costs. Moreover, net metering contributes to a more resilient grid and supports the transition to clean, renewable energy sources, benefitting both homeowners and the environment.
In addition to these statewide incentives, specific regions in Colorado offer additional support for renewable energy adoption and to increase your solar savings.
Holy Cross Energy offers rebates for solar PV systems and energy storage costs. Rebates range from $250 per kilowatt for systems up to 6 kW, or $100 per kilowatt for systems sized between 6 and 25 kW. Furthermore, it offers $250 to $500 per kilowatt for solar batteries up to 25 kW, if you are participating in the Power+ Distribution Flexibility Program.
Energy Smart Colorado offers rebates covering various energy efficiency measures and renewable energy systems. Although not a statewide program, it’s available in specific regions, including Boulder County, Eagle County, Roaring Fork Valley, and Summit County. Depending on where your home is, you can apply for rebates ranging from $500 to $2,500 when purchasing solar equipment and making home energy efficiency upgrades.
With so many incentives currently available, now is the time to go solar. Impact Energy only uses top quality equipment, carefully planned and installed to maximize the potential that solar energy offers.
Installation of Solar Panels, Battery Storage, and More
Impact Energy is your one stop shop for your solar power needs, offering comprehensive solar installation services.
It’s possible to significantly reduce the cost of solar panels in your part of Colorado after all applicable solar incentives. Impact Energy also offers solar loans, to help you take advantage of the Colorado solar rebates.