In Colorado, there are several incentives and rebates available for those who install solar panels. These incentives can help to offset the cost of installation and make solar energy more affordable for homeowners and businesses.
Federal Tax Credits: The federal government offers a tax credit of 26% of the total cost of the solar panel system. This credit applies to both residential and commercial installations and can be claimed on your federal tax return. The tax credit will decrease to 22% at the end of 2022, and then to 10% for commercial and 0% for residential after 2023.
State Tax Credits: Colorado offers a state tax credit of up to $1,000 for residential installations and up to $2,000 for commercial installations. This credit can be used in addition to the federal tax credit and can help to further reduce the cost of installation.
Utility Rebates: Many of Colorado’s utility companies offer rebates for customers who install solar panels. These rebates can range from a few hundred dollars to several thousand dollars, depending on the size of the solar panel system and the utility company offering the rebate. Customers should check with their specific utility companies to determine if rebates are available.
Net Metering: Net metering is a billing system that allows homeowners and businesses to receive credit for excess solar power that they generate but do not use. This excess power is fed back into the grid, and the customer is credited for the excess power. This credit can then be used to offset future energy bills.
Overall, these incentives and rebates can significantly reduce the cost of solar panel installation and make solar energy more accessible for homeowners and businesses in Colorado. It’s important to research and take advantage of these programs to get the most out of your solar investment.