With its stunning landscape of snow-capped mountains and a marvelously temperate climate, Colorado has always inspired its residents to do the right thing and preserve its gorgeous landscape for future generations. That’s one reason Colorado pioneered legislation in the renewable energy industry and continues to be a demonstrated leader in adoption of solar energy.
As one of the first states in the U.S. to have a Renewable Energy Standard, Colorado led the way in encouraging its residents to embrace solar power. That foresight has brought many benefits, including:
- Enough solar power capacity to power 452,783 homes
- The creation of 6,771 jobs in the solar energy industry
- Ranking 13th in the country for solar power adoption
- Investing a total of $4.8 billion in solar energy
- 93,315 completed installations
- A projected future growth of 3,712 megawatts over the next five years, enough to power over 700,000 homes.
With so many of your neighbors going solar, you might be wondering, are solar panels worth it in Colorado?
The answer is an emphatic “Yes!” And even better, Colorado solar panels are becoming more affordable each year. Although there’s many benefits in harnessing solar energy, we’ve looked at the most important reasons Coloradoans should consider taking the leap.
Top 8 Reasons Why Colorado Solar Panels Are Worth It
- Abundant sunshine
- No sales tax on the system purchase
- No taxes on your home’s increased value
- Federal tax incentives
- Get credited for producing extra electricity
- Rising electricity bills
- Protection from power outages
- Preserve Colorado’s natural beauty
1. Abundant Sunshine
Depending on where they live in the state, Coloradoans benefit from an average of 242 to 285 days of sunshine per year. Even if your roof is partially shaded, it may still get sufficient sunlight to power your home. Our solar specialists can evaluate your home to find a custom solar solution that will maximize your solar energy efficiency. And if you worry about snow, don’t. Colorado solar panels thrive in cold weather.
2.No Sales Tax on the System Purchase
Imagine being spared paying sales tax on a substantial investment on your home. Well, that’s exactly what you get when you invest in a solar panel system as a Coloradoan. The Sales and Use Tax Exemption for Renewable Energy Equipment takes sales tax out of the equation for residents who buy these systems.
Specifically, the state’s solar tax incentive specifies that “all sales, storage, and use of components used in solar thermal systems are exempt from the state’s sales and use tax.” This can really help make solar panels in Colorado a worthwhile investment.
3. No Property Taxes on Your Home’s Increased Value
If you get solar panels installed on your roof as a Colorado resident, the solar energy system is exempt from Colorado property taxation through the Property Tax Exemption for Residential Renewable Energy Equipment.
A solar power system must meet the following criteria to qualify for this incentive:
- Be located on residential property
- Generate solar energy used primarily for residential purposes
- Have a production capacity of less than one hundred 100 kilowatts of AC electricity
You’ll get the benefit of energy savings from solar energy without paying property taxes on the system generating it. That even applies to a battery system. That’s truly a win-win situation.
4. Federal Tax Incentive
Also known as the federal solar tax credit, the investment tax credit (ITC) gives some homeowners who go solar a break on their federal taxes. If you are eligible, you’ll get a credit of 26% of the cost of a solar energy system toward your federal tax bill.
Eligible expenses include the cost of the Colorado solar panels, installation, and related systems, including batteries, wiring, and inverters.
The deadline for the ITC has been extended several times throughout the years, with the 26% credit set to expire at the end of 2022. After that, the amount will decrease:
- 2020-2022: The 26% federal tax credit remains in effect.
- 2023: The 26% federal tax credit decreases to 22%.
- 2024: As of this year, there’s no longer a federal tax credit available for residential solar energy systems.
Don’t miss out on getting a potentially substantial credit on your federal taxes! It could make Colorado solar panels even more affordable. You can learn more about this incentive by speaking with one of our solar energy specialists.
5. Get Credited for Producing Extra Electricity
Colorado voters showed their support of solar energy back in 2004 when they passed the first renewable energy standard by public ballot in the U.S. This landmark move allowed the Colorado Public Utilities Commission to adopt standards for net metering the following year.
Through this net metering program in Colorado, electricity utility customers receive a credit for every kilowatt-hour of net excess generation their solar panels produce. At the end of the 12-month cycle, customers may choose to be paid at the investor-owned utilities’ average hourly incremental cost or roll over the credit indefinitely.
With Colorado’s net metering program, you could enjoy significant financial advantages and have yet another way to recoup the cost of solar panels in Colorado.
6. Rising Electricity Bills
Electricity rates in Colorado spiked 8.1% in the twelve months from February 2021 to February 2022. With inflation rates affecting everything from groceries to energy, prices are predicted to remain high even when inflation begins to ease.
Colorado is a place its residents love, but it is expensive. The current median home costs $488,600 ― 67% higher than the national average of $291,700. Overall, Colorado hits 121.1 on Sperling’s Best Places cost-of-living index, with a national baseline score of 100.
Using solar energy to power your home, on the other hand, can save you money on your electricity bills. It could lower them or even eliminate them entirely in some cases.Are solar panels worth it in Colorado? If you want lower electricity bills, the answer to this question is “yes.”
7. Protection From Power Outages
The power grid in America is aging even as we see more extreme weather events every year. Along with wildfires and other adverse events, the energy company’s power supply to your home faces more challenges every day and outages are happening more and more frequently. Installing solar panels and adding a solar battery to your system is one way to help ensure that you have energy security and that your home is still safe and cozy even when the snow is piling up outside your front door.
8. Preserve Colorado’s Natural Beauty
Colorado is one of the most picturesque states in the country. Factors that contribute to this view include the snow-capped Rocky Mountains, wealth of pine trees, and crystal-clear alpine lakes. Colorado is even home to Mesa Verde, an exceptionally well-preserved UNESCO World Heritage Site that has more than 600 Ancestral Puebloan cliff dwellings.
So, it’s little wonder that many Coloradans have become passionate about safeguarding these natural elements through the adoption of eco-friendly practices, products and experiences. Replacing traditional electricity with solar energy is one of the measures homeowners in the state are taking.
The ways in which solar energy preserves the environment include:
- Reducing greenhouse gas emissions which drive climate change and rising global temperatures
- Easing the demand on non-renewable energy sources that, if we continue to consume them at the current pace, will run out in the near future
- Tapping into the sun, a renewable resource that provides an abundance of clean energy.
By transitioning your energy source to solar power, you’ll play a role in helping to keep Colorado stunning.
Solar Specialists in Colorado
Whether you live in Denver, Boulder, Colorado Springs or the surrounding areas, ADT Solar™ is available to consult with you about getting a solar panel system installed.
We’re considered one of the top solar panel companies in the nation for good reason. Our dedicated solar specialists will tailor a solution for your home and answer the question, “Are solar panels worth it in Colorado?”
Don’t miss out on the benefits of solar energy any longer! Trust the highly knowledgeable and skilled ADT Solar™ team to help you choose solar power.Schedule Your Free Solar Consultation