Colorado Solar Incentives: 2025 Overview

A taxpayer may claim a credit of 30% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

Xcel Energy’s Solar*Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification. The follow REC payments are in effect as of November 19, 2013. Customer-owned systems 0.5 kW – 10.0 kW DC: $0.06 per kilowatt-hour (kWh) for first 10 years of production (kWh). Third-party-owned systems 0.5 kW – 10.0 kW DC: $0.03 per kWh for first 20 years of production. Customer-owned or third-party-owned systems 500.1 kW or greater: determined through competitive bid process.

Xcel Energy’s Solar*Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification. The follow REC payments are in effect as of November 19, 2013. Customer-owned systems 0.5 kW – 10.0 kW DC: $0.06 per kilowatt-hour (kWh) for first 10 years of production (kWh). Third-party-owned systems 0.5 kW – 10.0 kW DC: $0.03 per kWh for first 20 years of production. Customer-owned or third-party-owned systems 500.1 kW or greater: determined through competitive bid process.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

Xcel Energy’s Solar Rewards Program provides incentives for customers who install grid-connected photovoltaic (PV) systems sized up to 120% of the average annual load of their homes and facilities in exchange for the renewable energy credits (RECs) produced by the systems. All REC purchases are for a period of 20 years unless other legal provision supersedes. The size of the REC payment depends on the size of the system and the owner of the system as shown below. These payments will step down over time as distinct capacity levels, in megawatts (MW), are reached for each system classification.

A taxpayer may claim a credit of 26% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 22% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 30% for the installation which was between 2022-2032 (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit), with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the placed in service date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.

This incentive is open to Colorado Xcel Energy Electric Residential customers who are Income Qualified or are located in a Disproportionately Impacted Community.

The 2024 Solar*Rewards Income Qualified / DI Community On-site Solar program capacity is full. This program has been closed and more capacity will be released in 2025.This incentive is open to Colorado Xcel Energy Electric Residential customers who are Income Qualified or are located in a Disproportionately Impacted Community.

United Power, Inc is offering an incentive of $0.60/watt (DC) up to lesser of $1800 or 25 kW for new equipment, purchased and installed on the customers’ site. Rebate recipients will be selected on a first come first served basis based on the date the original application having been received by United Power. Once the available money for this program is exhausted, no further rebates will be issued unless additional funds are allocated towards this program.

Poudre Valley REA supports renewable energy development with net-metering and interconnection of distributed renewable energy facilities, and supports this development with limited rebate funding. The 2014 budget was set at $37,500 with an offering of $1.25 per watt up to a maximum rebate of $3,750 per PVREA customer. The PV Solar limited rebates are awarded on a first come – first served basis. The 2014 rebate fund is a fixed amount and will quickly be depleted by early applicants. Applicants chosen that meet the Rebate Requirements will be offered a rebate reservation letter defining the rebate amount, construction completion deadlines, and any other conditions required to connect your system to PVREA.

United Power, Inc is offering an incentive of $0.40/watt (DC) up to lesser of $1800 or 25 kW for new equipment, purchased and installed on the customers’ site. Rebate recipients will be selected on a first come first served basis based on the date the original application having been received by United Power. Once the available money for this program is exhausted, no further rebates will be issued unless additional funds are allocated towards this program.

Poudre Valley REA supports renewable energy development with net-metering and interconnection of distributed renewable energy facilities, and supports this development with limited rebate funding. The 2015 budget is set at $42,000 with an offering of $1 per watt up to a maximum rebate of $3,000 per PVREA customer. The PV Solar limited rebates are awarded on a first come – first served basis. The 2015 rebate fund is a fixed amount and will quickly be depleted by early applicants. Applicants chosen that meet the Rebate Requirements will be offered a rebate reservation letter defining the rebate amount, construction completion deadlines, and any other conditions required to connect your system to PVREA.

United Power, Inc is offering an incentive of $0.20/watt (DC) up to lesser of $1800 or 25 kW for new equipment, purchased and installed on the customers’ site. Rebate recipients will be selected on a first come first served basis based on the date the original application having been received by United Power. Once the available money for this program is exhausted, no further rebates will be issued unless additional funds are allocated towards this program.

United Power, Inc is offering an incentive of $0.10/watt (DC) up to lesser of $1000 or 25 kW for new equipment, purchased and installed on the customers’ site. Rebate recipients will be selected on a first come first served basis based on the date the original application having been received by United Power. Once the available money for this program is exhausted, no further rebates will be issued unless additional funds are allocated towards this program.

The Solar Grant Program provides grants for PV and solar water heating installations on housing enrolled in the city’s affordable housing program, site-based non-profit organizations, and low- to moderate-income housing owned and/or developed by a non-profit organization. Individual grant amounts are determined on a case-by-case basis but generally will not exceed 50% of the total out-of-pocket costs for the project after all rebates, tax credits, and other incentives are subtracted. There are two grant cycles each year. There are usually two grant cycles each year. Submissions (mailed or emailed) must be received by 5 p.m. on April 30 or October 31. The Solar Grant Program is funded out of sales and use taxes paid on solar projects in the City of Boulder. A portion of those taxes are rebated under the Solar Sales and Use Tax Rebate program.

The City of Boulder’s Solar Rebate Ordinance was enacted in 2008 and may rebate approximately 15 percent of the city sales and use tax paid on materials and permits for solar installation.

The Energy Smart Colorado program in Eagle County is run by the Walking Mountains Science Center. Solar PV installations that qualify for Energy Smart Colorado will receive a rebate up to $500.

Holy Cross Energy is offering incentives of $750/kW (DC) up to lesser of $4500 or 6 kW for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

Holy Cross Energy is offering incentives of $500/kW (DC) up to lesser of $3000 or 12 kW for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

The Energy Smart Colorado program in Eagle County is run by the Walking Mountains Science Center. Solar PV installations that qualify for Energy Smart Colorado will receive a rebate up to $500.

The Energy Smart Colorado program in Eagle County is run by the Walking Mountains Science Center. Solar PV installations that qualify for Energy Smart Colorado will receive a rebate up to $500.

Holy Cross Energy is offering incentives of $500/kW (DC) up to lesser of $3000 or 6 kW for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

Holy Cross Energy is offering incentives of $335/kW (DC) up to lesser of $2010 or 12 kW for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

Holy Cross Energy is offering incentives of $150/kW (DC) up to lesser of $450 or 25 kW for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

Holy Cross Energy is offering incentives of $250/kW (DC) for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

Holy Cross Energy is offering incentives of $100/kW (DC) for residential customers who install and own renewable generation. Rebates are available on a first come, first-served basis. Generation facilities must be connected to Holy Cross’s electric distribution system to qualify for incentives.

The Energy Smart Colorado program in Eagle County is run by the Walking Mountains Science Center. Solar PV installations that qualify for Energy Smart Colorado will receive a rebate up to $1000 per property. [For Towns of Avon, Eagle, and Vail]

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

Black Hills Energy has a performance-based incentive (PBI) for photovoltaic systems up to 100 kW in capacity. In exchange for these incentives, Black Hills Energy earns the right to the renewable energy credits associated with the PV-generated electricity for a period of time. PV systems 10 kW or less will receive a PBI per kilowatt-hour (kWh). While systems between 5 kW and 10 kW are allowed to participate in the program and net meter, they will only receive the PBI based on 5 kW. PBI payments are made annually for a period of 10 years. All incentive payments are subject to the availability of funds and a pre-installation site inspection. Black Hills Energy has established participation caps for each tier. PV installations are subject to on-site supervision by a NABCEP certified professional to maintain a 3:1 ratio for the installation crew (one certified installer for every three solar installers).

PBI=$0.0025/kWh, $100/kW paired storage system rebate. Maximum $1,000.00 Rebate per customer and Available Annual Capacity 1,750,000 Watts

The Company will provide a PBI incentive for larger facilities between 25 kW and 250 kW equal to $0.02/kWh and Available Annual Capacity 250,000 Watts.

Highline Electric Association is offering incentives to encourage development of Photovoltaic (PV) Renewable Energy Systems. HEA offers a rebate on solar of $2.00/watt (DC) up to 2 kW or $4000. Primary residence must be in HEA territory.

Fort Collins Utilities will continue to offer rebates for photovoltaic (PV) system installations in 2014. You will receive full credit for the electricity generated by your PV system for $1.50/watt (DC) up to 3 kW. Residential rebate funds now have been committed with over 70 rebates offered. New residential rebate requests will be placed on a waitlist.

Fort Collins Utilities will continue to offer rebates for photovoltaic (PV) system installations in 2015. You will receive full credit for the electricity generated by your PV system for $1.00/watt (DC) up to 3 kW. Fort Collins Utilities will begin accepting applications Jan. 15 for the 2015 rebate program. Confirmation of rebates will begin Feb. 16 in the order received unless we are oversubscribed, in which case rebates will be awarded on the basis of a lottery. (Funds for approximately 80 residential and 7 commercial rebates have been approved.)