Throughout the U.S., residential solar energy systems are eligible for several lucrative financial incentives. The federal solar tax credit, along with state and local grants, rebates and tax credits, can add up to savings of more than 50 percent on a home photovoltaic system.
But that’s not all you can save.
Some states also offer tax exemptions for photovoltaic installations. In Colorado, residential solar energy systems are eligible for both property tax and sales tax exemptions, helping you save even more on a home PV system.
Installing a residential solar panel system adds thousands of dollars in value to your home. And in some states, that increase may add a hefty amount to the property tax bill.
Not so in Colorado. Homeowners in Colorado don’t have to pay a dime in property taxes on the added home value. This property tax exemption makes investing in photovoltaic energy even more affordable.
Colorado homeowners who install solar energy systems save hundreds of dollars up front, thanks to the state’s sales tax exemption.
Home PV system components — including photovoltaic panels, inverters, mounting racks and balance of system equipment, like wires and batteries — are not taxed in the state of Colorado. Although installation labor is not exempt from taxes, this financial incentive provides a big bump in savings.
Colorado has a reputation for encouraging residents to go solar, and the state tries to make it as easy and affordable as possible.
Several Colorado utility companies offer significant solar rebates to homeowners who install PV systems. In addition, the state has excellent solar access laws. This means your homeowners association can’t stop you from installing photovoltaic panels on your roof.
Perhaps best of all, Colorado has one of the most progressive net metering policies in the country. Here, homeowners are paid the retail rate for excess electricity produced by their photovoltaic energy systems and sent back to the grid. If you’re careful about your household energy use, you can recover the cost of your system more quickly.
If you live in Colorado and want expert advice on installing a home PV system, the professionals at Intermountain Wind & Solar can help. As the leading residential and commercial photovoltaic provider for the Intermountain West region, our team can explain all your options and give you information about how to maximize your savings.
To learn more about Colorado residential solar energy systems, contact Intermountain Wind & Solar and schedule a free, no-pressure consultation today.
Colorado provides a 10% state tax credit on residential solar systems, capped at $1,000 per system. For example, a 6 kW setup nets $600. Local utilities often offer rebates up to $0.05 per watt. Contact us today to maximize these savings.
Colorado’s property tax exemption excludes 100% of your solar system’s added home value from state assessment for 20 years. A 5 kW array typically adds $15,000 in home value—fully exempted. This can save $350 annually. Schedule a free consultation today.
You can combine the 30% federal Investment Tax Credit (ITC) with Colorado’s 10% state credit (up to $1,000). For a $20,000 system, that’s $6,000 from the ITC plus $1,000 state credit. Consult our team to streamline your filings and maximize ROI.
After applying both federal and state tax credits, a typical 7 kW solar system in Colorado pays for itself in 6–7 years, depending on your energy use and rates. Systems average $2.50 per watt installed. Contact us to get your custom payback estimate.
Intermountain Wind & Solar handles all Colorado permitting, utility interconnection, and tax credit paperwork in-house. Since 2008, our team of full-time installers has completed over 1,200 Colorado projects. Reach out today to start your installation.
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