Benefits of Solar Energy
Solar energy provides multiple perks. Here are some highlights.
- Reduced carbon footprint: Embracing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: You can avoid the premium cost of grid-tied power by generating some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back to help pay for your energy bill.
- Better energy independence: Solar panel systems can keep your home functioning through blackouts and emergencies. You can use your solar energy anytime with an optional battery backup system.
What Solar Incentives Are Available to Colorado Springs Homeowners?
Colorado agencies and electric companies offer a range of solar incentives to help offset your solar system costs. Here's a breakdown of relevant solar programs where you live.
Incentive Type: Property Tax Incentive
Website: cdola.colorado.govIncentive Amount:
100% exemption for renewable energy system property
Incentive Type: Sales Tax Incentive
Website: tax.colorado.govIncentive Amount:
100%
Incentive Type: Rebate Program
Website: energysmartcolorado.comIncentive Amount:
Residential
PV: 50% up to $500
Solar Thermal: 50% of project costs
Commercial
50% of project costs
Incentive Type: Sales Tax Incentive
Website: bouldercolorado.govIncentive Amount:
~15% refund on sales and use tax for the solar installation
Incentive Type: Rebate Program
Website: energysmartcolorado.comIncentive Amount:
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
Incentive Type: Property Tax Incentive
Website: cdola.colorado.govIncentive Amount:
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
Incentive Type: Sales Tax Incentive
Incentive Amount:
Varies (local option)
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies (local option)
Incentive Type: Rebate Program
Website: efficiencyworks.orgIncentive Amount:
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
Incentive Type: Loan Program
Website: colorado.govIncentive Amount:
$35,000
Incentive Type: Loan Program
Website: colorado.govIncentive Amount:
$250,000
Incentive Type: Loan Program
Website: energysmartcolorado.comIncentive Amount:
$25,000
Incentive Type: Performance-Based Incentive
Website: blackhillsenergy.comIncentive Amount:
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
Incentive Type: Rebate Program
Website: csu.orgIncentive Amount:
PV: $0.10 per watt
Incentive Type: Rebate Program
Website: csu.orgIncentive Amount:
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
Incentive Type: Rebate Program
Website: blackhillsenergy.comIncentive Amount:
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
Incentive Type: Rebate Program
Website: secpa.comIncentive Amount:
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
Incentive Type: Rebate Program
Website: mvea.coopIncentive Amount:
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
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
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.
How To Choose the Best Solar Company in Colorado Springs
Choosing a company is the first step toward a well-oiled and cost-efficient solar energy system. Consider all of these criteria in your company search.
Licensing and Training
While electricians and plumbers in Colorado have state-issued licenses from the Colorado Electrical Board or Colorado State Plumbing Board, the state's unique home-rule structure means counties and cities can issue their own solar professional if they choose. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar sector's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Colorado Springs
The style of solar panels you select determines how much energy you can produce. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't meant for large home installations, but they're excellent for small projects like sheds and RVs.
If you'd like to charge an electric car or use your solar power in dark weather, you can pay extra for add-ons. By choosing the right components, you can make your system more effective and convenient to use. Not every solar contractor provides these optional components, so look for a contractor that sells them if it's crucial for you.
You can plan to spend about $19,900 on average for a five-kilowatt solar energy system in Colorado Springs. Check the table in this section to get an idea of how much Colorado Springs solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,148 |
| Solar Polycrystalline | $895 |
| Thin-Film | $523 |
| Solar Battery | $735 |
| Solar Home EV Charger | $2,755 |
Financing Solar Energy in Colorado Springs
Solar contractors offer multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are solar leases, solar loans, power purchase agreements (PPAs) and cash payments. Most solar experts recommend paying cash or using a solar loan. Cash payments demand a large up-front sum, but they help you avoid paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Like a car or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, like an electric bill. We generally don’t recommend these two options because you won't own the panels and are disqualified from using solar incentives. Ask each company you're evaluating about the payment options it offers. A staff member can help you determine the optimal option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Colorado Springs.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Local and state governments and utility companies might also offer discounts, rebates, and dedicated financing plans that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 1.8 years |
| 2 kW | 3.6 years |
| 5 kW | 8.9 years |
| 10 kW | 17.8 years |
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Frequently Asked Questions About Solar in Colorado Springs
How much money could I save by going solar in Colorado Springs?
How common is solar energy in Colorado Springs?
Should I expect a property value increase after adopting solar power?
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