The Current Cost of Solar Panels in Colorado
In the last 10 years, the price of solar panels for homeowners in America have fallen by more than 50%! This is not surprising considering the rapid increase in solar technologies and America's urgency to increase solar imports & exports. Yet, many Americans are still "in the dark" when it comes to how much solar panels might cost them.
Fortunately, solar panels costs less then advertised and probably less than you think. In this article we will dive into the average costs of solar and how you can reduce the sticker price by thousands! With Colorado solar incentives and local solar programs, solar panels in The Mile High State are more affordable than ever before!
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Solar Energy in Colorado
In Colorado, Solar power represents a reliable, sustainable, and increasingly affordable solution to meet the growing energy needs of home and business owners in the state. With over 300 days of sunshine per year, Colorado is perfectly positioned to harness this abundant, solar energy source. As a leading solar company in Colorado, EcoGen America aims to educate homeowners about the benefits of solar power and how to utilize Colorado solar incentives to help you go solar, for less.
Colorado is blazing a trail in solar energy production. As of 2023, the state ranks 12th nationwide in terms of installed solar capacity, with enough solar installations to power over 500,000 homes. Notably, the state has committed to ambitious renewable energy goals, aiming for 100% renewable electricity by 2040, a goal that's driving a surge in solar installations across residential, commercial, and utility sectors.
The Costs of Solar Panels in Colorado
The cost of solar panels, which varies based on the system's size and type, is a significant consideration when transitioning to renewable energy. On average, homeowners in Colorado pay approximately $2.81 per watt, equating to around $13,050 for a typical 5kW residential system. This cost incorporates the price of the solar panels, the inverter to convert the direct current into usable alternating current, the mounting hardware, and professional installation labor.
However, it's essential to highlight that these initial costs are frequently mitigated by various incentives at the federal, state, and local levels. These financial aids render solar power an increasingly affordable and viable option for many homeowners, despite the substantial upfront investment.
| System size* | Average cost (before tax credit) | Average cost (after tax credit) |
|---|---|---|
| 4 kW | $11,080 | $7,756 |
| 5 kW | $13,140 | $9,890 |
| 6 kW | $16,620 | $11,634 |
| 8 kW | $22,160 | $15,512 |
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Colorado Solar Incentives
Harnessing solar energy has become increasingly affordable, thanks largely to a variety of solar incentives offered at the federal, state, and local levels in Colorado. These programs not only reduce the initial costs of solar panel installation but, in some cases, may even allow homeowners to install solar panels at no upfront cost. Learn more about how to get free solar panels installed in Colorado.
In addition to federal incentives, Colorado offers a series of state-level solar programs that can further decrease the cost of solar installation. Notably, Colorado's Renewable Energy Standard includes a mandate for investor-owned utilities to source a percentage of their power from customer-owned solar installations. This has prompted these utilities to offer various solar rebate programs.
The state also exempts renewable energy equipment from sales and use tax, which can further decrease the upfront cost of solar. Moreover, Colorado has a property tax exemption for renewable energy systems, ensuring that installing solar panels won't increase your property tax bill.
These solar incentives are just a few of many discounts and tax credits available for solar owners. Colorado solar incentives can significantly reduce, or even eliminate, the initial cost of going solar. It's through these robust incentive programs that Colorado is making solar energy more accessible to its residents.
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Return on Investment with Solar
Despite the notable upfront cost, solar power systems prove to be a sound investment over time, often paying for themselves within 7 to 12 years. This payback period is largely due to the significant savings on electricity bills that solar panels provide. After installing a solar power system, homeowners typically see a substantial reduction in their monthly energy costs. In many cases, during sunny months, a solar system can generate more electricity than a home uses, resulting in net metering credits that can offset the cost of electricity used at night or during less sunny periods.
Beyond the monthly savings, solar panels also provide financial benefits in terms of property values. Numerous studies have found that homes equipped with solar energy systems have higher property values and sell more quickly than their non-solar counterparts. Additionally, with the lifespan of a solar system averaging 25-30 years, homeowners stand to enjoy many years of virtually free electricity after recouping their initial investment. Given Colorado's abundant sunshine and the state's strong commitment to renewable energy, the return on investment for solar energy systems in the state is particularly promising.
Going Solar in Colorado
The benefits of transitioning to solar energy in Colorado are clear - from the substantial long-term financial returns to the significant environmental impact. The state's abundant sunshine and commitment to renewable energy make it an ideal place to invest in solar power. And, thanks to a robust range of federal, state, and local incentives, the cost of solar has never been more affordable.
At EcoGen America, we're committed to making the transition to solar as seamless and affordable as possible for Colorado homeowners. We're ready to guide you through the process, helping you understand and take full advantage of the incentives available to you.
Why wait? Enter your zip code now for a free solar quote and see which Colorado solar incentives you qualify for. Uncover the potential savings and environmental impact you could make by harnessing the power of the sun. It's time to brighten your future with solar energy.
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On average, homeowners in Colorado pay approximately $2.81 per watt, equating to around $13,050 for a typical 5kW residential system. However, with proper solar incentives applied, you can reduce the cost of going solar, by thousands! Read more about the Colorado solar incentives.
In Colorado, a 5kW system (10x 500W panels) could generate enough power for most mid-sized homes. A 5kW solar system costs around $9,890 with the proper solar incentives applied. Get a custom solar quote.
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