Benefits of Solar Energy
Solar energy provides multiple perks. Let's look at a few of them.
- Lowered energy bills: You can avoid the added cost of grid-tied power by creating some electricity right where you use it. Plus, many states offer net metering which can allow you to sell your unused energy back for credits on your bill.
- Reduced carbon footprint: Utilizing solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
- Better energy independence: Solar panel systems can keep your home running through blackouts and emergencies, giving you additional security. You can use your solar energy anytime with an optional battery storage system.
What Solar Incentives Are Available to Denver Homeowners?
Governments and utilities often incentivize homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
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: Performance-Based Incentive
Website: xcelenergy.comIncentive Amount:
Systems 0.5 kW - 25 kW: $0.005/kWh
Medium-sized Systems 25.1-500 kW: $0.0375/kWh
Large Systems (>500kW): Determined through competitive bid
Incentive Type: Loan Program
Website: elevationscu.comIncentive Amount:
Minimum loan of $1,000 for businesses and $500 for homes
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: Rebate Program
Website: unitedpower.comIncentive Amount:
CFL Recycling: FREE
New Energy Star Refrigerator/Freezer: $30
Refrigerator/Freezer Recycling: $75
New Energy Star Clothes Washer: $40
New Energy Star Dishwasher: $20
New Electric Thermal Storage Units (on automated Time-of-Day control panel): $4-$16/kW
New Electric Thermal Slab (on automated Time-of-Day control panel): $4-12/kW
Water Heaters: $20-$400
Terminal Unit for Heat Pump A/C Units: $75-$85/Unit
Heat Pumps: $100-$450/ton
Geothermal Heat Pumps: $200-$500/ton
Air Conditioners: $100-$150
Incentive Type: Loan Program
Website: xcelenergy.comIncentive Amount:
Up to $50,000
Incentive Type: Rebate Program
Website: xcelenergy.comIncentive Amount:
Refrigerator Recycling: varies, contact utility for details
Natural Gas Furnace: $300
EC Motor in New or Existing Furnace: $100
Air Conditioning/Air Source Heat Pump: $300-$600
Mini-Split Heat Pump: $300
Water Heater: $70-$450
Evaporative Cooling: $200-$1,200
Attic Insulation: $350-$600
Wall Insulation: $350-$600
Air Sealing, bypass sealing, and weather-stripping: $175-$450
Ground Source Heat Pump: $300/ton
Smart Thermostat: $50
Incentive Type: Rebate Program
Website: xcelenergy.comIncentive Amount:
Attic Insulation: $400-$700
Air Sealing/Bypass Sealing/Weather-Stripping: $250-$550
High Efficiency Lighting: 30% of cost
Wall Insulation: $450-$700
Evaporative Cooling System: $325-$1200
Central Air Conditioner (New): $400 - $700
Central Air Conditioner (Trade In): $550
Ground Source/Geothermal Heat Pump: $300 per ton
Electric Heat Pump Water Heater: $550
Programmable Thermostat: $25
High Efficiency Furnace: $400
Electrically Commuted Motor: $125
Tankless Water Heater: $200
Standard Tank Water Heater: $100
ENERGY STAR Refrigerator: $15
ENERGY STAR Clothes Washer: $30
Incentive Type: Loan Program
Website: colorado.govIncentive Amount:
$35,000
Incentive Type: Loan Program
Website: colorado.govIncentive Amount:
$250,000
Incentive Type: Performance-Based Incentive
Website: xcelenergy.comIncentive Amount:
2015 Large RFP Program: Incentive Type: Loan Program Incentive Amount: $25,000 Incentive Type: Personal Tax Credit Incentive 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. Choosing a company is the first step toward an effective and cost-efficient solar energy system. Make your choice based on the following important considerations. While electricians and plumbers in Colorado have state-issued licenses from the Colorado Electrical Board or Colorado State Plumbing Board, counties and cities can issue their own solar professional if they choose. Solar companies can also obtain accreditations from trade groups and standards organizations. The most respected ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information. Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance. You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can boost your solar system's efficiency. Not all solar companies offer these add-ons, so look for a company that sells them if it's essential for you. If you're a resident of Denver and want a five-kilowatt solar energy system, you could expect to pay about $19,900 for materials and labor. See more information on specific component and solar panel costs in the table. Choosing the optimal financing plan will impact your overall solar system cost and potential savings. Common payment options include power purchase agreements, loans, cash payments, and leases. Most solar experts recommend a cash payment or using a solar loan. Cash payments demand a large up-front sum, but they save you from 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 potentially $0 down. Solar leases allow you to use your panels for a set monthly rate, while PPAs let you pay only for the energy you use, much like an electric bill. Both options disqualify you for solar incentives and do not provide you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for installers that offer several payment plans to find the right fit for your pocket. The table below lists the average payback periods for different capacities of solar systems in Denver. The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own financing programs, incentives, and rebates that could save you more money. Please enter a valid 5-digit zip code! In contrast, solar loans can come from specialty lenders, local banks, the government and installer. You'll need to pass a credit check to qualify for most of them. While the upfront costs are greater, and you'll be responsible for maintenance, you'll also have full ownership rights and can apply for many more incentives. To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
Determined through competitive bid. RFP released on March 3, 2016 How To Choose the Best Solar Company in Denver
Licensing and Training
Cost of Solar Panels in Denver
Solar Panel Cost Average Cost Solar Monocrystalline $1,173 Solar Polycrystalline $915 Thin-Film $535 Solar Battery $751 Solar Home EV Charger $2,816 Financing Solar Energy in Denver
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 Ready to Get a Quote on Your Solar Project?
Frequently Asked Questions About Solar in Denver
How much money could I save by going solar in Denver?
How prevalent is solar energy in Denver?
Will solar energy systems boost my Denver home worth?
What if I live in a heavily-wooded or rainy
How long does the solar installation process last?
What size should my new Denver solar system be?
What are some "red flags" to watch for as I research companies?
What's the difference between a PPA and traditional financing?
Sources
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