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Colorado Solar & Battery Incentives

Learn CO Rebates Incentives

With the latest advancements in solar technology, more affordable solar system prices, and attractive new incentives, there’s never been a better time to capitalize on Colorado’s solar potential. We’ve compiled some of the most beneficial solar and battery incentives available to Colorado homeowners below.

In-House Promotions

These fall promotions are valid from October 1st, 2023 — December 31st, 2023.

  • Referral Award — When you refer a friend to Photon Brothers, you will receive a $500 check at the time of their installation, and they will receive a FREE EV Charger Installation or a $500 check! The EV Charger installation includes the EV charger + wiring of up to 30 feet of conduit run. The EV Charger will be a Tesla Wall Connector or a Tesla J‑1772 (which is compatible with non-Tesla vehicles).
  • $500 Rebate for New Solar or Battery Customers — If you sign a new contract with Photon Brothers before December 31st, you will receive a $500 check once your installation is complete!

New systems must include at least 10 panels or 1 home battery to qualify for the above promotions.

Federal Investment Tax Credit (ITC)

From now until 2032, the federal government is offering a 30% investment tax credit against the total cost of a home solar system. It’s one of the best incentives the federal government has ever offered in way of a solar tax credit. 

How it works:

If you buy your solar system outright, you can apply 30% of the total cost of your solar system installation to your tax liability for the year.

For example, if you purchase a solar panel system that’s worth $20,000, you can get a credit of $6,000 on your federal taxes.

Keep in mind, this is not a cash rebate — it’s a tax credit.

Starting in 2033, the value of the tax credit will lower to 26%. After 2034, the tax credit for residential solar systems will end.

Want to learn more? Contact us.

Local Solar & Battery Incentives

In Colorado, some utility companies and other local organizations offer cash rebates to homeowners who install solar systems on their property.

Local rebates available:

  • Xcel Battery Rebate: Xcel Energy is offering a $2,500 rebate per Powerwall plus $100/​year (up to five years) for opting into their battery participation program. This is in addition to the 30% federal tax credit. Learn more about Xcel’s Powerwall Rebates here.
  • Denver CARes (Denver Climate Action Rebates): This rebate is eligible for Xcel customers who reside in the city of Denver. Work must have been completed between January 1, 2023 and December 31, 2023. We will provide information on the 2024 program when it becomes available. 
    • Solar Rebate (must have functioning heat pump): up to $4,000
    • Battery (no heat pump): up to $500
    • Battery (with heat pump): up to $2,750
    • EV Level 2 Charger: up to $1,000
    • Main Panel Upgrade (only available with another rebate type): up to $2,000
  • City of Fort Collins: Homeowners are able to save up to $2,500 when combining available solar and battery rebates
    • Solar: up to $1,000 per household | $200/​kW
    • Battery: up to $1,500 per household | $100/​kW
  • Colorado State Tax Credit: Colorado is offering a 10% tax credit available on eligible Powerwall equipment. This tax credit is available through the DR-1307 form.
  • Energy Smart Colorado: Depending on your home’s location, they offer rebates for solar installations ranging from $400 to $3,000.
  • Holy Cross Energy: To reduce the cost of solar system installations, Holy Cross offers customers a per-kilowatt (kW) rebate for their solar and battery installation.
    • Solar up to $30,000 kW per household
      • 0 — 6 kW | $250/​kW
      • 6 — 25 kW | $100/​kW
    • Battery up to $15,000 kW per household
      • 0 — 25 kW with DFT program enrollment | $500/​kW
      • 0 — 25 kW without DFT program enrollment | $250/​kW
  • Black Hills Energy: As part of their Ready EV” program, Black Hills Energy is now offering a $500 check towards electric vehicle chargers for your home or business. This rebate ends December 31, 2023 and must be claimed by January 31, 2023. See their website for more details.
  • Speak with one of our solar professionals at (719) 204‑3094 to learn more about available solar rebates in your area.

Colorado State Sales Tax Exemption

With Colorado’s sales tax exemption, homeowners who install solar energy systems are not taxed on their system components, which can save hundreds of dollars. The exemption generally applies to state-administered special district sales taxes, but not to most state-administered city and county sales taxes.

How it works:

Residential solar power system components are not taxed in Colorado. The exemption only applies to sales and use taxes imposed by the states, not those imposed by incorporated towns, cities and counties.

Some of the eligible components include:

  • Solar modules and trackers
  • Supporting structures or racks
  • Inverters
  • Balance of system components
  • …and more

Some of the ineligible components include: 

  • Step-transformers at the production site
  • Energy storage
  • Remote monitoring systems

*Note: The sales tax exemption does not include labor. 

Want to learn more? Contact us.

Net Metering

Net metering is a solar billing incentive that allows homeowners to benefit from every ounce of energy their solar panel system produces. Essentially, if your solar panels generate more power than you use, you’ll be credited by your utility company toward future energy bills.

How it works:

During your solar panel installation process, you can choose to have your existing meter swapped out for a net meter. Net meters run backward when your system produces more energy than your home is using — storing credits for when your home is using more energy than your solar panels are producing.

In return, a net metering policy will credit you for the extra electricity your system produces and allow you to use those credits when your system doesn’t produce enough power. These credits can be carried over month after month. 

Want to learn more? Contact us.

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How Much Will You Save When You Install with Photon Brothers?

State and federal governments offer solar incentives and tax rebates to homeowners in Denver. But homeowners have to know about them to take advantage of them. At Photon Brothers, we’re aware of every possible opportunity out there for our customers and can lower your installation cost like nobody else. If you’re ready to see how much you can save by going solar, contact us today.