Solar Panels in Colorado: Prices and Incentives in 2024

Installing residential photo voltaic panels in sunny Colorado tends to be cheaper than different states, as a result of decrease common power consumption and smaller common photo voltaic installations. The state’s eco-friendly insurance policies additionally make photo voltaic an effective way to save lots of on electrical energy payments in the long term.

The common value for an average-sized photo voltaic panel system in Colorado is $28,933 earlier than incentives, and as little as $20,253 after federal photo voltaic tax credit score. This whole is predicated on the state’s median dollar-per-watt value of photo voltaic system set up and common residential system measurement, which is a low of 9.3 kWs within the second half of 2023.

The median value per watt of put in capability, $3.10, is without doubt one of the dearer choices within the US But the typical system measurement in Colorado is on the decrease finish of 9.3 kW. This could also be influenced by the Colorado web metering guidelines which particularly permit web metering for techniques beneath 10 kW. Average month-to-month electrical energy consumption can also be comparatively low in Colorado, with the typical family consuming 572 kWh of power per thirty days, in keeping with EnergySage. ^[0]

Some clients in Colorado have discovered that their native energy grid won’t assist interconnecting photo voltaic panels to the utility grid with out an costly improve. For instance, Xcel Energy, Colorado’s largest utility firm, instructed a house owner that he must pay $7,000 for a brand new transformer to attach his photo voltaic panels to the grid as a result of the system in his neighborhood can not assist one other photo voltaic set up, The Colorado Sun reviews.

“Connectivity is essential,” mentioned Mac Scott, director of communications for the Colorado Solar & Storage Association (COSSA). “Homeowners are liable for the upgrades wanted to make renewable power potential. Someone will attain the tip of this funding and discover out that there are sudden prices. “

The excellent news is Senate Bill 218 ^[0]

in Colorado web metering settlement provides one-to-one credit score while you promote photo voltaic power to the grid for residential techniques as much as 10kWs. Net metering is a billing conference that provides you credit score for the surplus energy your system produces through the day, which may be utilized to electrical energy prices throughout darkish or cloudy intervals of the day when your system is utilizing and extra energy than this manufacture. One-to-one web metering means you get 1 kW credit score in your electrical invoice for each 1 kW your photo voltaic panels generate. This coverage, designed to encourage individuals to go photo voltaic, makes it simpler for residents with photo voltaic to maintain their electrical energy payments as little as potential. Not all states supply web metering, a lot much less one-to-one web metering.

In Colorado, if you happen to produce extra electrical energy than you employ, you’ll be able to have a unfavourable web utilization stability for electrical energy and credit in your account. These credit roll over till you terminate your utility service, at which level any remaining credit might be forfeited.

As extra photo voltaic panels are put in in Colorado, web metering agreements might change.

A $156 million grant from the Environmental Protection Agency referred to as Colorado Solar For All permits income-eligible candidates to use for and obtain entry to solar energy. The plan’s construction and software course of are nonetheless in growth on the time of publication.

Colorado additionally has quite a lot of domestically administered rebates and incentives, a few of which residents can apply for by way of Energy Smart Colorado. Available incentives differ primarily based on location. In the Roaring Fork Valley, for instance, residents can get rebates for 25% of the price of a undertaking, or as much as $2,500, for photo voltaic panel techniques and storage techniques.

However, many utilities don’t take part in Energy Smart Colorado. To cowl your bases, it is price asking your utility supplier if they provide incentives or rebates. You also can seek for Database of State Incentives for Innovations and Benefits (DSIRE) a undertaking carried out by North Carolina State University, to study the advantages.

Solar batteries, which let you retailer the electrical energy produced in your house, add quite a bit to the price of putting in a photo voltaic panel. Since Colorado has one-to-one web metering, batteries might not save a lot in your electrical invoice. But they will present backup energy within the occasion of an outage, which may be particularly helpful in distant areas with tougher entry to energy traces.

The common put in battery value in Colorado ranges from $16,575 to $22,425 earlier than the federal tax credit score kicks in, in keeping with 2024 EnergySage knowledge. This will add a number of years to the payback interval on your photo voltaic panel system.

The state of Colorado provides a ten% tax credit score on the acquisition worth of power storage techniques comparable to battery backups. This is utilized on the point-of-sale, so your battery storage installer will often apply the low cost while you pay.