2024 Solar Incentives Guide for Colorado Springs, CO - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Colorado Springs.

You'll learn about:

  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2024 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Colorado Springs solar installers to see how much you can save.

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated May 20, 2024

Why you can trust EcoWatch

We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

What Solar Tax Credits, Incentives, and Rebates are Available in Colorado Springs?

Property Tax Exemption for Residential Renewable Energy Equipment

Incentive Type:
Property Tax Incentive
100% exemption for renewable energy system property

Sales and Use Tax Exemption for Renewable Energy Equipment

Incentive Type:
Sales Tax Incentive

Eagle County - Energy Smart Colorado Renewable Energy Rebate Program

Incentive Type:
Rebate Program
Residential
PV: 50% up to $500
Solar Thermal: 50% of project costs
Commercial
50% of project costs

City of Boulder - Solar Sales and Use Tax Rebate

Incentive Type:
Sales Tax Incentive
~15% refund on sales and use tax for the solar installation

Roaring Fork Valley - Energy Smart Colorado Renewable Energy Rebate Program

Incentive Type:
Rebate Program
PV: 25% of cost
Solar Water Heat: $25% of cost
Solar Thermal Tune-up: 25% of project cost
Micro-hydro and Geothermal: 25% of cost

Property Tax Exemption for Community Solar Gardens

Incentive Type:
Property Tax Incentive
100% exemption for the percentage of electricity capacity (AC) of a community solar garden attributed to residential or governmental subscribers or organizations that are already exempt from property taxes

Local Option - Sales and Use Tax Exemption for Renewable Energy Systems

Incentive Type:
Sales Tax Incentive
Varies (local option)

Local Option - Property Tax Exemption for Renewable Energy Systems

Incentive Type:
Property Tax Incentive
Varies (local option)

Efficiency Works - Residential Energy Efficiency Rebate Program (Offered by 4 Utilities)

Incentive Type:
Rebate Program
Air Sealing: $300-$500
Insulation: Up to $1,815
Duct Sealing: $200 (gas-heated homes only)
Window Replacement: Up to $1,000
Air Handler Blower Motor: $150
Whole House Mechanical Ventilation: 20% of cost
Heat Pumps: $500
Replacement Furnace: $300-$500 (gas-heated homes only)
Ductless Mini-Split: $250/head
Replacement Gas Boiler: $300 (gas-heated homes only)
Replacement Water Heater: $100-$500
AC System: $150-$500
Whole House Fan: $275
Evaporative Cooler: $500

Residential Energy Upgrade (RENU) Loan Program

Incentive Type:
Loan Program
$35,000

Green Colorado Credit Reserve

Incentive Type:
Loan Program
$250,000

Eagle, Garfield, Gunnison, Lake, and Pitkin Counties - Energy Smart Colorado Loan Program

Incentive Type:
Loan Program
$25,000

Black Hills Energy - Solar Power Program

Incentive Type:
Performance-Based Incentive
Systems sized 0.5 kW - 30 kW: $0.030 per kWh is paid over a 10-year period
Systems sized 30.001 kW - 500 kW: $0.060 per kWh is paid over a 10-year period

Colorado Springs Utilities - Renewable Energy Rebate Program

Incentive Type:
Rebate Program
PV: $0.10 per watt

Colorado Springs Utilities - Residential Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Electric Dryers: $50
Natural Gas Furnace: $250
Natural Gas Water Heater: $50
Insulation & Air Sealing: 40% of job cost, up to $200
Refrigerator/Freezer Recycling: $50
Smart Thermostats: $50
LED lighting: in-store discounts
Irrigation Equipment: Up to $50
Solar Panels: $0.20 per AC Watt

Black Hills Energy (Electric) - Residential Energy Efficiency Program

Incentive Type:
Rebate Program
Air-Source Heat Pump: $250-$650
Heat Pump Ductless Mini Split: $300
Central A/C: $250-$550
Ground Source Heat Pumps: $1,500
Evaporative Cooler: $100-$1000
Heat Pump Water Heater: $500
Attic Insulation: $0.35/sq. ft.
Wall Insulation: $0.65/sq. ft.
Air Sealing/Duct Sealing: 50% of cost
Appliance Recycling: $50

Southeast Colorado Power Association - Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Note that the rebates listed here are a combination of Tri-State rebates and SECPA rebates

Electric Heat Pump (Central Air Source): $300-$475/ton plus $100/unit for ETS backup, $85/unit for terminal units
Geothermal Heat Pumps: $550-$600/ton
Air Conditioners: $100-$150/unit
Commercial LED Lighting: Varies
LED Lamps: lower of $8/lamp or fixture or 50% of cost
Water Heaters: Varies, see website
Refrigerators/freezers: $80/unit plus $60/unit additional for refrigerator/freezer recycling
Clothes Washers: $80-$90/unit
Clothes Dryers: $30-$90
Dishwashers: $20-$40/unit
Irrigation Motors: $10/HP plus $1.50/HP wiring assistance if the motor replaces a fossil fuel engine or is a new installation
Variable Speed Drive Retrofit: Lesser of 50% of cost or $20,000/project
Low Income Weatherization: up to $500
Electric Thermal Storage Units: $20/kW
Thermal Slab: $12/kW

Mountain View Electric Association, Inc - Energy Efficiency Rebates Program

Incentive Type:
Rebate Program
Residential Lighting
Energy Star LED Bulbs: 50% of cost

Residential Appliances
Refrigerator/Freezer: $30/unit plus $60/unit if recycled
Dryer: $30-$90
Clothes Washer: $30-$40
Dishwasher: $20
Water Heater: $50-$350/unit
Marathon Electric Water Heater: $200/unit plus $2/gallon
Air Conditioner: $100-$150
Geothermal Heat Pump: $500/ton
Geothermal Heat Pump Replacement: $250
Thermal Storage: $16-$20/kWAir Source Heat Pump: $300-$450/ton
Packaged Terminal Heat Pump: $85/unit

Commercial Lighting
LED/Induction Street Lighting: 25% of cost
LED Refrigerated Case Lighting Retrofit: 50% of cost
Other Lighting Incentives: Vary, see program website

Federal Residential Renewable Energy Tax Credit

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


The term "solar incentives" refers broadly to financial incentives implemented by the government and by solar companies to encourage increased use of renewable energy by making installing and using solar panels more affordable. You may qualify for different kinds of incentives, such as discounts, cash back or monthly utility bill credits, depending on your situation. Certain incentives come from your specific utility company, county or municipality, some from the Colorado government and others from the federal government. You might qualify for any of the following types of solar incentives:

  • Net Metering: Don't forget to talk to your Colorado Springs utility company about signing a net metering contract. This allows you to get a credit towards your utility bill every month for the value of excess energy generated by your solar panels. You might receive either a dollar-for-dollar credit or a percentage of the value.
  • Tax Exemptions: Your solar system could qualify for both sales tax and property tax exemptions. Sales tax exemptions are effective at the time of purchase. Property tax exemptions let you ignore the added value of the solar panels when calculating property taxes on your house.
  • Rebates: Rebates, or partial refunds after a purchase, are normally applied prior to any solar tax credits being calculated. These rebates might be provided by your local utility company, by your county or by your state.
  • Tax Credits: Different from tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.

Best Solar Financing

Blue Raven Solar

★★★★★
4.5
  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries

Best for Leasing

Sunrun

★★★★★
4.0
  • Expansive service area
  • Many financing options
  • Some reported issues with customer service
  • Some reported issues with door-to-door sales

Best Social Impact

Palmetto Solar

★★★★★
4.0
  • Expansive service area
  • Makes charitable contributions
  • Certified B Corp
  • No leases or PPAs
  • Quality of installation may vary by location

Federal Solar Incentives

When thinking about solar incentives, you probably think of federal incentives first. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. The ITC is a tax credit equal to a certain percentage of the money you spend installing solar panels.

The ITC can be applied to solar systems installed after January 1, 2006, and under this program you can deduct from your taxes a percentage of the total cost of solar panels, labor, equipment and accessories. You can claim this credit for a solar panel system installed on a primary or secondary residence that you own in the United States. The original amount you could claim was 30% of the total cost, although depending on when the project was completed, your credit may range from 26-30%. There is no maximum claim amount.

Curious how the ITC might apply to your specific situation? Get in touch with your local Colorado Springs solar panel installation expert to get more information.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was expanded and extended by the passage of the Inflation Reduction Act. For solar systems installed between January 1, 2022, and December 31, 2032, homeowners can receive a credit equal to 30% of the total cost. This percentage will decrease annually after 2032 until the Clean Energy Credit ends in 2035. Starting in 2023, the expansion will also make credits for energy storage systems even easier to claim.

Click here to learn more about the new Inflation Reduction Act. Your local Colorado Springs solar panel installers are the best people to answer your questions about the new Clean Energy Credit and how it will apply to you.

State & Local Solar Incentives

Some solar incentives are often also provided at the state and local level. As with federal incentives, these may include tax credits, rebates and more. These solar incentives — which might be provided by your county or municipality, or by the state of Colorado — might be offered on an ongoing basis, or for only a limited time.

Next Steps for Installing Solar in Colorado Springs

The nationwide use of solar energy has gone up tremendously in the past 15 years, in part thanks to the proliferation of solar incentives. You may get these incentives from the federal government, the Colorado government or your local utility company. If you're ready to make the change to solar energy, reaching out to your local Colorado Springs solar panel installation expert is an excellent place to start.

EcoWatch's Colorado Springs, CO Solar Incentives FAQs

How do I learn if I qualify for solar incentives?

It's best to speak with your local Colorado Springs solar installer for a better understanding of which incentives your project will qualify for. Generally, solar incentives apply to new solar panel systems installed on property you own (in the U.S.) within a specified date range. Some incentives, like those provided by the Colorado government, may have additional requirements.

How much will a solar system save me annually on my electric bill in Colorado Springs?

When you add solar panels to your Colorado Springs home, you can expect to save about $1,230.49 per year, or around $23,379.28 over 20 years.

Who installs solar panel systems near me?

To learn about the top solar panel installation companies near you, take a look at our article on Colorado Springs' best solar panel companies.

What are some environmental benefits of adding solar panels to my home?

You can lower your carbon footprint by 500 pounds of CO2 annually when you switch to solar panels. This adds up to roughly 11,000 pounds in 20 years. In addition, solar power is a renewable energy source, meaning that switching your home over lessens the drain on our planet's resources.

Can I receive any incentives when I add solar panels to a rental property, vacation home or commercial property?

While we recommend speaking with your local solar installer and/or tax professional to better understand what solar incentives apply to you, many incentives apply to a second home, provided that it is in the United States and owned by you. There may be other incentives available for commercial properties specifically, depending on the details.

Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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