Solar incentives / Colorado
Federal, state and utility programs that reduce the cost of a home solar or battery system in Colorado. Each record links to its source. Programs change often and can run out of annual funding — confirm current terms before relying on a number.
| Program | Value | Type | Expires | Source |
|---|---|---|---|---|
| Federal Residential Clean Energy Credit (Section 25D) federal · United States |
30% of eligible system cost for property placed in service 2022–2025; 0% for installs after 2025-12-31 (terminated by the 2025 budget-reconciliation law). | tax credit | 2025-12-31 | IRS — Residential Clean Energy Credit ↗ verified 2026-08-30 |
No state credit, but Xcel Energy and other utilities offer rebates, and solar is sales- and property-tax exempt statewide.
For an average Colorado bill, a whole-home system runs about $22,771 net of modeled incentives, with roughly a 11.5-year payback. Run it with your own bill in the Solar Decision Engine.
No state credit, but Xcel Energy and other utilities offer rebates, and solar is sales- and property-tax exempt statewide. The federal residential tax credit is 30% for systems placed in service through 2025 and 0% afterward.
No state income-tax credit for solar is modeled for Colorado. Utility rebates and tax exemptions may still apply.
Only for residential systems placed in service on or before 2025-12-31. A 2026+ residential install does not qualify for the Section 25D credit. Details →