Understanding Solar Installation Rebates in Colorado: 2025 UpdateWhen you're thinking about adding solar to your Colorado home, rebates and incentives can be game changers. With solar panel installation costs still significant, taking advantage of savings programs makes solar not just eco-friendly—but smart money, too. Here's what you need to know for 2025 if you're installing a solar electric system in Longmont or anywhere in Colorado.
1. Federal Clean Energy Tax Credit (ITC)
Homeowners can claim 30% back on the total cost of solar panel systems—equipment, labor, permitting—via the Residential Clean Energy Credit through the Inflation Reduction Act. That applies through December 31, 2025, with scheduled reductions after that. This is the single-largest incentive available.
2. State-Level Tax Exemptions
Colorado doesn’t charge sales tax on solar systems and also offers a property tax exemption. That means you avoid paying additional sales tax upfront (~2.9%) and won’t be hit with higher property taxes later.
3. Utility & Local Utility Rebates
Programs like Energy Smart Colorado in participating counties offer rebates ranging from $500 to $2,500 for installing solar. These can stack with utility incentives, increasing your savings. Longmont homeowners served by Longmont Power & Communications can also access the regional Efficiency Works program. This includes support for solar and energy upgrades—plus expert energy audits.
5. Denver/Metro Specific Rebates
If you’re near Denver, check for local programs:
6. Net Metering & Renewable Energy Credits
Colorado’s strong net-metering policies let homeowners send unused solar power back to the grid with full credit on bills. Credits typically roll over month to month or get paid out yearly depending on your utility. Investor-owned utilities must generate a set amount of renewable energy annually, partly by crediting customer-generated power.
Real Savings Snapshot
A typical 6 kW solar system (~$18,000–$24,000 before incentives) can see immediate reductions:
What Should You Do Next?
Homeowners can claim 30% back on the total cost of solar panel systems—equipment, labor, permitting—via the Residential Clean Energy Credit through the Inflation Reduction Act. That applies through December 31, 2025, with scheduled reductions after that. This is the single-largest incentive available.
2. State-Level Tax Exemptions
Colorado doesn’t charge sales tax on solar systems and also offers a property tax exemption. That means you avoid paying additional sales tax upfront (~2.9%) and won’t be hit with higher property taxes later.
3. Utility & Local Utility Rebates
- Xcel Energy Solar*Rewards: Offers $1/watt installed—but the 2025 budget is already exhausted. Expect it to reopen early in 2026.
- Black Hills Energy: Pays $0.03/kWh generated for systems under 25 kW or offers $100/kW plus program-based incentives.
- Holy Cross Energy: Pays $250/kW for systems ≤ 6 kW, then $100/kW up to 25 kW—first-come, first-served.
- San Miguel Power Assn.: $0.10/watt rebate, capped at $300.
- Municipal programs: Some towns like Erie, Aspen, and others offer rebates up to $500–$2,500.
Programs like Energy Smart Colorado in participating counties offer rebates ranging from $500 to $2,500 for installing solar. These can stack with utility incentives, increasing your savings. Longmont homeowners served by Longmont Power & Communications can also access the regional Efficiency Works program. This includes support for solar and energy upgrades—plus expert energy audits.
5. Denver/Metro Specific Rebates
If you’re near Denver, check for local programs:
- Denver Climate Action Rebate: Offers $1/watt up to $2,000 for solar, with additional storage rebates. Funds for 2025 have already been allocated.
- Switch Together Denver: A group-buy program via Solar United Neighbors that brings community pricing and expert guidance.
6. Net Metering & Renewable Energy Credits
Colorado’s strong net-metering policies let homeowners send unused solar power back to the grid with full credit on bills. Credits typically roll over month to month or get paid out yearly depending on your utility. Investor-owned utilities must generate a set amount of renewable energy annually, partly by crediting customer-generated power.
Real Savings Snapshot
A typical 6 kW solar system (~$18,000–$24,000 before incentives) can see immediate reductions:
- 30% federal ITC → $5,400–$7,200
- Sales/property tax exemptions → ~$500
- Local utility rebates → Varies by provider ($600–$2,500+)
- County incentives → $500–$2,500
- Net metering value → ongoing electricity bill savings
What Should You Do Next?
- Verify your utility provider (Xcel, LP&CO, etc.) and check current rebate program statuses.
- Talk to a certified solar installer (like Flatiron Solar!) to stack federal, utility, and local rebates.
- Ask for an energy audit—Local programs like Efficiency Works can maximize efficiency upgrades.
- Apply early—Some local funds run out quickly.
Colorado Has a Lot of Incentives for Home Solar Installation
Colorado offers a robust suite of incentives for home solar in 2025. Start with the federal 30% ITC and layer on local rebates, tax breaks, and net metering. With savings potentially topping 40%, this is one of the best states for getting solar.
At Flatiron Solar in Longmont, we walk you through every program, ensure you qualify, and make sure your solar electric system delivers maximum value—right from Day 1.
Colorado offers a robust suite of incentives for home solar in 2025. Start with the federal 30% ITC and layer on local rebates, tax breaks, and net metering. With savings potentially topping 40%, this is one of the best states for getting solar.
At Flatiron Solar in Longmont, we walk you through every program, ensure you qualify, and make sure your solar electric system delivers maximum value—right from Day 1.