Colorado is one of the sunniest states in the US, making it a prime location for solar energy. In addition to the amazing scenery and weather, there are also a number of financial incentives available to make the switch to solar even more appealing. One of these incentives is the Solar Rebate Program, which provides homeowners with a rebate for installing a solar energy system. In this blog post, we will discuss the different solar rebates available in Colorado and how you can claim them.
The Solar Rebate Program is a Colorado initiative that offers rebates to residents who install solar panels on their homes. The program is designed to encourage the use of renewable energy and help reduce Colorado’s carbon footprint. Rebates are available for both residential and commercial installations, and the amount of the rebate depends on the size of the system.
In addition, the rebate can be used to offset the cost of solar panel systems, making them more affordable for Colorado families. The program is administered by Xcel Energy, the state’s largest electric utility, and is available to both residential and commercial customers.
If you are a Colorado resident considering solar panels for your home, now is a great time to take advantage of the Solar Rebate Program! There are different kinds of rebates and incentives available, depending on the size of your solar panel system and whether you are a residential or commercial customer. The rebates can be used to offset the cost of solar panels, making them more affordable for Colorado families. Here are some of the rebate and incentive programs currently available in Colorado:
To begin with, all solar panel installations in the United States qualify for the Federal Solar Tax Credit. This tax credit is equal to 26% of the cost of your photovoltaic (PV) solar energy system, and it can be used to reduce your federal income taxes. This current tax credit is available for purchased home solar systems installed during 2020-2022. For the year 2023, the ITC will be cut back to 22%.
Being the state’s largest electric utility, Xcel Energy is also one of the most popular companies that offer solar rebates in Colorado. They have a program called Solar*Rewards® which provides a rebate to their customers who install either photovoltaic (PV) or solar water heating systems.
Xcel Energy is offering a performance-based incentive (PBI), which means that the amount of your rebate will be based on the actual production of solar energy by your system. As their customer, you could receive $0.0375 per kilowatt-hour (kWh) of solar energy produced by their system. This rebate applies to systems that range from 25.01 kW to 500 kW in size. Their customers are also eligible for net energy metering, which could further offset the cost of their solar installation.
Holy Cross Energy is a regional electric cooperative that serves about 52,000 people in central and western Colorado. They are offering a per-kilowatt rebate for its customers to encourage them to install rooftop solar PV systems. The amount of the incentive is $500 for the first 6 kW, and it will go lower for larger systems. So homeowners who install an average of 6kW solar system can save up to $3,000 on their installation costs with the Holy Cross Energy rebate.
Colorado Springs Utilities (CSU) is another local utility company that offers a rebate for solar energy systems. They are offering customers a rebate of $0.10 per watt for new solar installations. Depending on your installation, you can get up to 40% of your system costs covered by the rebates and tax credits. You can be eligible for this rebate if your PV system has a minimum size of 500 watts AC, with a maximum system size of up to 120% of your usage.
For the homes in the areas of Pitkin, Eagle Valley including Eagle County, the Town of Vail, and Summit County, Energy Smart Colorado is offering its customer to get a rebate of anywhere from $400 to $2,500 for solar installations.
Fort Collins Utilities also offers a solar rebate for both residential and commercial customers who install new photovoltaic systems. They’re offering up to $1,000 for newly installed systems. You can also receive a credit for the electricity that their PV system produces through their net metering program.
There are certain requirements that you will need to meet in order to qualify for solar rebates.
To claim your ITC, you must own the solar energy system, and it must be your primary residence or second home. The system must also be new, and it cannot have been used to claim the ITC in the past. It’s important to note that you can only claim the ITC if you owe federal taxes.
For most utility company rebates, you will need to be their customer and have installed a new solar energy system. Some companies may require that your system be connected to the grid, while others may not. There are also other requirements that vary from company to company, so it’s important that you check with your utility provider to see what is required.
You can also check with your local government to see if there are any solar rebates or incentives available. Many states and municipalities offer solar rebates and incentives, so it’s definitely worth checking to see if there are any available where you live.
Solar rebates and incentives can save you thousands of dollars on your installation costs, and they’re a great way to encourage people to switch to solar energy. If you’re thinking about installing a solar energy system, be sure to check and see if there are any solar incentives, rebates, or tax credits available in your local area and with your utility provider. It could save you thousands of dollars on your solar installation.
If you have any questions about solar tax credits, rebates, or incentives, feel free to leave a comment below or contact us. We’re always happy to help!