Colorado Solar Incentives & Tax Credits
Every solar incentive available to Colorado homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $19,865 system, that's a $5,960 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
$500
Colorado State Incentive
Colorado offers sales tax exemption on solar equipment.
Net Metering in Colorado
Colorado has Full Retail net metering. Your top utility, Xcel Energy, credits you for excess solar power fed to the grid.
Policy Type
Full Retail
Electricity Rate
$0.135/kWh
Top Utility
Xcel Energy
Utility Net Metering Policies in Colorado
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Xcel Energy | $0.135 | Full Retail | 120% of annual consumption |
| Colorado Springs Utilities | $0.135 | Full Retail | No overall limit |
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