#1 Choice of Boulder Home Builders
COLORADO SOLAR AND BATTERY INCENTIVES
At The Solar Revolution, we believe there’s never been a better time to go solar in Colorado. With cutting-edge solar technology, lower system costs, and powerful new incentives, homeowners now have more opportunity than ever to reduce energy bills and boost long-term home value. We’ve outlined the most valuable solar and battery incentives currently available to Colorado homeowners below—so you can make an informed, high-ROI investment in clean energy.
30% FEDERAL TAX CREDIT IS GOING AWAY!
The 30% Federal Investment Tax Credit (ITC) is scheduled to step down after December 31, 2025. To qualify for the full 30% credit, your solar system must be installed and have Permission to Operate by year-end 2025. Given project timelines and increasing demand, this is the final window to lock in your contract and secure installation in time. Delaying could mean missing out on thousands in federal savings—act now to maximize your return.
Federal Investment Tax Credit (ITC)
Through the end of 2025, the federal government is offering a 30% investment tax credit against the total cost of a home solar system.
It’s one of the best incentives the federal government has ever offered in way of a solar tax credit. This incentive was originally put in place to remain through 2032, but is now only available for a few more months. Act now to make sure you qualify!
How it works:
If you buy your solar system outright, you can apply 30% of the total cost of your solar system installation to your tax liability for the year.
For example, if you purchase a solar panel system that’s worth $20,000, you can get a credit of $6,000 on your federal taxes.
Keep in mind, this is not a cash rebate — it’s a tax credit.
The Federal Tax Credit is now only available through 2025. This means your system must be installed and given Permission to Operate by December 31, 2025.
Want to learn more? Contact us.
Local Solar & Battery Incentives
In Colorado, some utility companies and other local organizations offer cash rebates to homeowners who install solar systems on their property. Additional income-based incentives may be available if you qualify for public assistance (SNAP, TANF, or other).
Local rebates available:
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Xcel Battery Rebate: Xcel Energy offers a rebate of up to $5,000 for homeowners installing Powerwall 3 batteries, plus $100/year (up to five years or $500) for opting into their battery participation program. This is in addition to the 30% federal tax credit. Learn more about Xcel’s Powerwall Rebates here.
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City of Fort Collins: Homeowners can save up to $4,000 when combining available solar and battery rebates.
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Solar: up to $1,000 per household | $200/kW
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Battery: up to $3,000 per household | $150/kW
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Colorado State Tax Credit: Colorado is offering a 10% tax credit available on eligible Powerwall equipment which amounts to $1,200 back. This tax credit is available through the DR-1307 form.
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Energy Smart Colorado: Depending on your home’s location, they offer rebates for solar installations ranging from $400 to $3,000.
Colorado State Sales Tax Exemption
With Colorado’s sales tax exemption, homeowners who install solar energy systems are not taxed on their system components, which can save hundreds of dollars. The exemption generally applies to state-administered special district sales taxes, but not to most state-administered city and county sales taxes.
How it works:
Residential solar power system components are not taxed in Colorado. The exemption only applies to sales and use taxes imposed by the states, not those imposed by incorporated towns, cities and counties.
Some of the eligible components include:
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Solar modules and trackers
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Supporting structures or racks
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Inverters
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Balance of system components
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…and more
Some of the ineligible components include:
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Step-transformers at the production site
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Energy storage
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Remote monitoring systems
*Note: The sales tax exemption does not include labor.
Want to learn more? Contact us.