Solar & Net Metering Policy
Net metering is available in Colorado, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Mandated for investor-owned utilities and large cooperatives up to 120% of annual usage. Colorado does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value and a sales tax exemption on solar equipment.
Net Metering Notes
Mandated for investor-owned utilities and large cooperatives up to 120% of annual usage.
Utility Rebate Details
Xcel Energy's Solar*Rewards offers production-based incentives.
Does Colorado have net metering?
Yes. Colorado has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Mandated for investor-owned utilities and large cooperatives up to 120% of annual usage.
What solar tax credits are available in Colorado?
Colorado does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Colorado?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Colorado for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Colorado?
Yes. Colorado offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in Colorado?
Yes. Colorado exempts solar energy equipment from state sales tax, which can save several percent on the upfront cost of your system.
Does Colorado have an SREC market?
Colorado does not currently have an active SREC market. Solar owners in Colorado cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Colorado?
Yes. Utility rebates are available in Colorado. Xcel Energy's Solar*Rewards offers production-based incentives.
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Official Source
Colorado Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.