Solar Tax Credit Colorado: 2024

by | May 4, 2024 | Renewable Energy, Solar Energy

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If you live in the Centennial State, you’ve probably pondered “going solar,” which means investing in the best solar tax credit in Colorado for your home. That’s because Colorado is known for its sunny weather. Locals believe the state receives 300 days of sunshine annually, making it ideal for anyone who wants to live off the grid—wholly or partially—and power their home on solar energy.

Colorado Solar Panel Costs

The average solar panel in Colorado costs $3.13 per watt. So, if you install a five-kilowatt solar panel system (the standard size), a typical solar installation in Colorado will cost between $13,302 and $17,998, with an average cost of $15,650.

System Size System Cost System Cost (after ITC)
4 kW $12,520 $9,265
5kW $15,650 $11,581
8kW $25,040 $18,530

Federal Solar Investment Tax Credit

It is a tax incentive in the United States that encourages the use of solar energy by lowering tax liability. People can claim 30% of the total cost of solar equipment, like labour, materials, and installation costs.

It is vital to note that this solar tax credit in Colorado is only available to those who meet specific qualifications. For example, the ITC only applies to individuals who buy their photovoltaic (PV) system outright, not those who lease or finance it. You should also evaluate your income level, as the financial advantages of the solar tax credit Colorado can differ. However, higher-income persons may receive little or no benefit from the tax credit.

Colorado’s Solar Rebates & Tax Credits

Apart from the significant federal solar tax credit, the state of Colorado offers several solar tax credit programs.

1. Net Metering

Like many states, Colorado has a generous net metering policy. Net metering connects your solar panels to a public utility power grid. If you generate excess energy, you do not need right now; you can sell it back to the grid for credits that can be applied to your future energy bills.

2. Cash Rebates

Colorado residents can receive cash rebates for installing solar on their property. We have mentioned two popular solutions below.

  • EnergySmart Colorado: Depending on your region, you may be eligible for a rebate ranging from $400 to $2,500.
  • Holy Cross Energy: This great per-kilowatt (kW) rebate can save up to $3,000.

3. Colorado’s Solar Property Tax Exemption

Colorado is devoted to renewable energy, which means it is delighted to provide tax advantages to residents who want to switch to solar. The Sales and Use Tax Exemption for Renewable Energy Equipment exempts you from paying sales tax when you buy a solar system.

Furthermore, the Property Tax Exemption for Residential Renewable Energy Equipment eliminates the need to pay property taxes on the increased value of your home as a consequence of your solar system installation.

How to Select the Best Colorado Solar Panel Company?

Colorado is home to many solar panel companies. The tips given below can help you identify the best service for your needs.

  • Check the reviews.
  • Ask on local websites like Facebook or Yelp.
  • Determine whether you want a local or national provider.
  • Check for certifications and licences.
  • Consider financing possibilities.

solar tax credit Colorado

In conclusion, the solar tax credit Colorado has proven to be an important incentive for increasing the state-wide use of solar energy systems. Providing financial incentives to individuals and companies not only encourages the use of renewable energy but also contributes significantly to environmental sustainability. This policy demonstrates Colorado’s dedication to pursuing clean energy programmes and lowering carbon emissions for a more sustainable future.

Also Read: How To Use Generator With Solar Panel?

 

Author

  • Michael Thompson

    Michael Thompson is an esteemed expert in the renewable energy sector, with a profound experience spanning over 25 years. His expertise encompasses various sustainable energy solutions, including solar, wind, hydroelectric, and energy efficiency practices. Michael discusses the latest trends in renewable energy and provides practical advice on energy conservation.

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