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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

New! Share the Savings: Spring Referral Bonus

Each receive $750 off your project when you and a friend both sign a contract between April 1, 2024 — June 30, 2024. 

Each contract must be $15,000 or more. Once the second contract is signed, a $750 deduction will be made from your total project cost. The referred project will receive their $750 discount at time of signing. Not valid on service-related work. 

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 lowered 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. Additional income-based incentives may be available if you qualify for public assistance (SNAP, TANF, or other).

Local rebates available:

  • Xcel Battery Rebate: Xcel Energy is offering a $5,750 rebate for homeowners installing a Powerwall 3, 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 (some Denver county addresses may qualify). 
    • 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 $200
    • Main Panel Upgrade (only available with another rebate type): up to $2,000
  • City of Fort Collins: Homeowners can save up to $5,500 when combining available solar and battery rebates. The following amounts are approved through July 31, 2024 and may be reduced after that.
    • Solar: up to $1,500 per household | $300/​kW
    • Battery: up to $3,000 per household | $300/​kW
    • New Solar & Battery combined: additional $1,000 bonus
    • Solar Add-On & Battery: additional $500 bonus
  • Colorado State Tax Credit: Colorado is offering a 10% tax credit available on eligible Powerwall equipment which amounts to $1,000 back. 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. 
  • Speak with one of our solar professionals at (720) 370‑3344 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.

Federal charging and EV incentives

Homeowners can save up to $1,000 on charging their EV at home and business owners may qualify for up to $100,000 back for EV charging and their business locations.

How it works:

The U.S. federal tax credit gives individuals 30% off an electric vehicle charging station plus installation costs (up to $1,000). Credits must be claimed on your federal tax return.

If you purchase and install an electric vehicle charging station between Jan. 1, 2023, and Dec. 31, 2032, your business may be eligible to receive a 30% tax credit up to $100,000 under the 30C Alternative Fuel Infrastructure Tax Credit. Commonly referred to as the federal tax credit,” the credit now requires applicants to be located in designated census tracts (guidance and maps forthcoming from the IRS) and follow prevailing wage standards.

Want to learn more? Contact us.

Denver sky

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.