Colorado Solar Guide 2026
Everything Colorado homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about Colorado solar
Colorado's high altitude, 300+ days of sunshine, and full retail net metering make it an excellent solar state. The Front Range corridor (Denver–Boulder–Fort Collins) has the highest solar adoption.
Peak sun hours
5.4
hrs/day avg
Avg electricity rate
14.0¢
per kWh
Median install cost
$2.9/W
before incentives
Typical payback
10 yrs
8 kW system, avg usage
Typical 8 kW system in Colorado
Annual production
15,768 kWh
Year-1 savings
$2,208
System cost (est.)
$23,200
No federal tax credit — Section 25D expired December 31, 2025.
Colorado Net Metering Policy
Full retail net metering
Colorado requires full retail net metering for most utilities. Xcel Energy is the dominant provider and has a straightforward interconnection process.
Colorado Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Property tax exemption on added home value
- ✓Xcel Energy rebates ($0.05/W for some programs)
- ✓Various local utility incentives
Top Utilities in Colorado
Interconnection timeline: 3–7 weeks
Calculate your Colorado solar economics
Our calculators are pre-filled with Colorado data. Run any tool below.