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Colorado

Information on selling in the State of Colorado

Updated over 2 months ago

Federal Incentives

  • 30% Investment Tax Credit (ITC)

  • MACRS + bonus depreciation

  • IRA Direct Pay for nonprofits


State Incentives

⚡ Sales & Use Tax Exemption

100% exemption on solar equipment- usually saves 2.9% on system purchases (LINK)

⚡ Property Tax Exemption

Full value-added exemption for residential renewables ≤ 100 kW; small commercial/local facility exemptions apply as well (LINK)

🏛️ PACE Financing

Statewide PACE & C‑PACE available - supporting clean energy upgrades repaid via property taxes over 20 years (LINK)


Utility & Local Incentives

  • Net Metering

    Mandatory for systems ≤ 10 kW - customers receive full retail credit for exported energy (LINK)

    Xcel, Holy Cross, Black Hills, SMPA all enable this

  • Performance-Based Incentives (PBIs)

    • Xcel Solar*Rewards: ~$0.005/kWh + REC surrender over 20 years (LINK)

    • Black Hills Energy: ~$0.03/kWh + $100/kW storage rebate

    • Holy Cross Energy: $250/kW (≤ 6 kW), $100/kW (6–25 kW); up to $30 k rebates (LINK)

  • Local Municipal Rebates

    • Solarize Summit (Breckenridge, Frisco, Silverthorne, Summit County): $1,650 rebate + 5% installer discount (Feb–May 2025) (LINK)

    • City of Boulder: Solar grants w/ income thresholds (up to $8k) + sales tax rebate (LINK)

    • Energy Smart Colorado (Roaring Fork Valley, Eagle, Gunnison, Lake, Summit): 25% system cost rebate (max $2.5k) (LINK)

    • Fort Collins Utilities: Up to $1.5k for solar, $3k for storage, $5.5k total, until July 2024 (LINK)

    • Colorado Springs Utilities: $0.02/W for residential solar (~40% project coverage) (LINK)

    • Denver Climate Action Rebate: $1/W up to $4k solar; battery rebates $500–$2.75k (LINK)


✅ Policy & Standards

  • RPS: Utilities must meet + 20%renewables (≥4% distributed) since 2020 (LINK)

  • Interconnection: Standard state/investor-owned utility rules; local permitting bottlenecks noted (LINK)

  • Community Solar Gardens: Investor‑owned utilities offer virtual net metering for gardens ≤ 2 MW under 2010 legislation (LINK)


Nonprofit & Low‑Income Incentives

  • IRA Direct Pay: 30% cash rebate for nonprofits

  • Weatherization Assistance Program (WAP): Covers solar for eligible low-income residents, including installation and maintenance

  • Income-based Grants/Rebates: Boulder, Denver co-op, Energy Smart programs include income-qualified tiers

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