Colorado
Colorado Solar & Battery Incentives 2026 — Net Metering, Solar*Rewards & Storage Credit
Colorado law requires qualifying utilities to offer net metering that offsets retail consumption, Xcel Energy runs Solar*Rewards, and the state offers an income tax credit of 10% of a home battery's purchase price, extended through 2029.
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Incentive categories
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Program entries
17.13¢
Avg rate / kWh
14.6 yrs
Simple solar payback
$36,143
25-yr net solar savings
Excellent
Solar potential
Solar Incentives in Colorado
Xcel Energy Solar*Rewards (CO)
Varies by program year
Xcel Energy Colorado's solar incentive program, with additional per-watt support for income-qualified customers. Terms change by program year; confirm the current offer with Xcel.
Eligibility: Xcel Energy Colorado residential customers.
Heat Pump Incentives in Colorado
Xcel Energy Heat Pump Rebate
$1,700–$2,200 (mini-split, 2026)
2026 rebates of $1,700 for a qualifying mini-split heat pump and $2,200 for a cold-climate mini-split; Xcel natural gas customers may receive a bonus from October 1, 2026. Installations must be completed by December 31, 2026. Rebates cannot exceed installation cost.
Eligibility: Xcel Energy Colorado residential electric and/or natural gas customers.
Federal HEAR Framework (State Availability Varies)
Statutory household cap up to $14,000
Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.
Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.
EV Incentives in Colorado
Xcel Charger and Wiring Rebate
Up to $500 (up to $2,300 income-qualified)
Rebate toward a Level 2 charger and/or 240-volt wiring, up to $800 in Disproportionately Impacted Communities and up to $2,300 for income-qualified customers. Requires enrollment in a qualifying Xcel charging program such as Optimize Your Charge.
Eligibility: Xcel Energy Colorado residential customers enrolled in a qualifying EV charging program.
Battery Incentives in Colorado
CO Residential Energy Storage Credit
10% of purchase price
State income tax credit equal to 10% of the battery system's purchase price (including sales tax and freight, not installation). Extended through December 31, 2029 by HB26-1289; can be claimed by the taxpayer or assigned to the seller.
Eligibility: Purchasers of qualifying energy storage installed in a Colorado residence; claim with Form DR 1307.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $36,143
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
Solar Policy & Local Utilities in Colorado
Net Metering
Full retail net meteringColorado requires statewide retail-rate net metering, so exported solar is credited at roughly the full retail rate. Excess credits roll over month to month.
Source: Colorado Public Utilities Commission / DSIRE
Major Utilities
- Xcel Energy (Public Service Co. of Colorado) — Solar*Rewards
- Black Hills Energy
Colorado Solar Facts
- Colorado offers a 10% state income-tax credit for home battery storage, capped at $5,000. (Colorado Dept. of Revenue)
- Xcel's Solar*Rewards program adds a production-based incentive on top of net metering. (Xcel Energy)
Last verified: 2026-06. Always confirm current terms with your utility or at DSIRE.
Is Solar Worth It in Colorado?
Colorado is a solid solar market. State law requires qualifying utilities to offer net metering that offsets retail consumption, and the state's sun (5.2 peak sun hours a day in our data) partly offsets a moderate electricity rate. Our planning model shows about 14.6 years to payback.
Nationally, EnergySage reports the average U.S. homeowner saves about $60,500 over 25 years by going solar, without the expired federal credit (page updated June 2026). Actual savings vary by state, electricity rate, export rules, and system size.
Key Advantage
Colorado's strong sun means more production per kW installed than most northern states, and Xcel Energy offers a Solar*Rewards program; check its current terms with Xcel.
Watch Out For
Rural co-op and municipal utility customers often have less favorable rate structures than Xcel customers, reducing ROI for rural Colorado homes.
Solar Cost & Savings in Colorado (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $30,400 |
| Net install cost | $30,400 |
| Annual energy savings | $2,081 |
| Simple payback period | 14.6 years |
| 25-year net savings | $36,143 |
The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Planning example for an 8 kW system: $3.80/W installed (LBNL 2024 median for Colorado), 5.2 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 17.13¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $36,143
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
How to Go Solar in Colorado: Step-by-Step
- 1
Verify you are an Xcel Energy customer
Xcel customers can apply for Solar*Rewards. Rural electric co-op and municipal utility customers should check their own utility's solar program.
- 2
Claim Colorado's battery storage credit if you add storage
Colorado offers a state income tax credit of 10% of a home battery's purchase price (not installation), extended through 2029; claim it with Form DR 1307 or assign it to the seller. Note: The federal 25D ITC for solar and battery storage expired Dec 31, 2025.
Frequently Asked Questions — Solar & Clean Energy in Colorado
Is solar worth it in Colorado in 2026?
It can be. With 5.2 peak sun hours a day in our data and net metering that offsets retail consumption, our planning model shows about 14.6 years to payback. Xcel customers can also check Solar*Rewards, which our model does not include.
What is Xcel Energy's Solar*Rewards program?
Solar*Rewards is Xcel Energy Colorado's solar incentive program, with additional per-watt support for income-qualified customers. Terms and rates change by program year, so confirm the current offer on Xcel's website or with your installer before counting it in your payback.
Does Colorado have net metering in 2026?
Colorado net metering status: Full retail net metering. Colorado requires statewide retail-rate net metering, so exported solar is credited at roughly the full retail rate. Excess credits roll over month to month. (Source: Colorado Public Utilities Commission / DSIRE.)
Which utilities in Colorado offer solar programs?
The main electric utilities in Colorado are Xcel Energy (Public Service Co. of Colorado), Black Hills Energy. Notable programs include Solar*Rewards (Xcel Energy (Public Service Co. of Colorado)). Confirm current offers with your utility and check DSIRE.org for Colorado programs.
Recommended Products for Colorado
Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.
Calculate Your Colorado Savings
The Solar ROI link preselects Colorado's planning inputs, including the listed electricity rate (17.13¢/kWh). Other tools open with their own defaults; review every input before calculating.
Browse Other States
Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (June 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installed price: LBNL Tracking the Sun (Residential systems installed in 2024), a median rather than a quote. The 2.5% annual rate change is a model assumption, not a forecast. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.