Colorado Solar Panel Pricing: Everything You Need To Know

How much are solar panels in Colorado? If you’re looking at installing solar panels for your home, price is always going to be a major consideration. There are many factors that can affect the price of your installation. Doing some quick calculations in advance can provide you with accurate expectations. That said, it’s best to consult with professional solar installers. 

Ahead of your solar estimate, we’ll help you prepare by reviewing:

• The Basics of Solar Panel Pricing
• Solar Financing Options
• Incentives and Rebates
• Return on Investment

The Basics of Solar Panel Pricing

The four fundamentals of pricing a solar panel array are system size, location, the quality of the equipment, and labor expenses. The market average cost of a 5 kW solar system is around $17,000. However, this price can vary widely depending on the four basic factors we elaborate on below.

System Size

Your home’s electrical needs determine the size of the solar array you need to fully power it. The total daily wattage used by all the products and appliances in the home gives you this baseline. It’s also worth considering whether there will be any additional needs in the near future. Dividing this total number by 24 gives you watt-hours. The number of solar panels you install must be able to match that output.

Location

The space you choose to install the panels is a major factor in cost. Some homes offer large expanses of flat roofing that make the installation relatively simple. Others require more complex custom solutions. It’s generally recommended to install these arrays on the southern side of the home for more direct sunlight. It should be possible to orient them at a thirty-degree angle, and obstructions to sunlight－such as trees－may need to be trimmed or removed.

Equipment Quality

The overall efficiency of your solar panel depends on the quality of the equipment you invest in. The most efficient systems use high-quality components provided by the same manufacturer. An expert solar contractor can provide guidance on which equipment is best for your needs and budget.

Installer Costs

The cost associated with the labor involved in the installation is the final major factor in the overall price. It may be tempting to go with the cheapest contractor for this purpose. However, if you want high-end expertise and quality results, it’s best to go with a highly reputable installer… even if they cost a bit more.

Solar Financing Options

A quality solar provider should be able to provide flexible financing options to make your installation more affordable. They should work with a verified loan processor to confirm your eligibility. Loan contracts might range anywhere from 18 months to 25 years in length. The process should yield the best loan rate offer possible, saving you money and offering peace of mind.

Incentives and Rebates

A wide range of tax incentives and rebates are available for solar panel installation in Colorado. Collectively, they can significantly impact how much solar panels cost in the state. These benefits make solar a more attractive prospect than ever before.

Through the year 2032, a 30% investment tax credit is available from the federal government against the total cost of your system. Utility companies in the state offer local solar and battery rebates. A state sales tax exemption is in effect for system components. Finally, if your system produces more electricity than you use, net metering provides credit toward future energy bills.

Return on Investment

Installing a solar system is a great way to save money on energy in the long run. Over a 20-year span, an average-sized home solar system in Colorado provides $16,920 in savings. Depending on the size of the system, those long-term savings can be even higher. A larger system can easily provide $90,000 in overall savings over its lifespan. The return on investment definitely makes installing a solar panel array worth it.