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2018 Colorado Solar Tax Incentives and Rebates Explained


Posted in: Solar Info | Tags: , , , | November 13, 2018

Colorado Solar Tax Incentives

When you begin to look at investing in a solar system, you might have a bit of sticker shock initially. But the good news is that there are many Colorado Solar Tax Incentives and rebates for new systems that will help make your solar system possible. However, these incentives won’t be around forever! If you’re thinking about solar, don’t miss your chance to take advantage of these great solar tax incentives and rebates available in Colorado.

Sandbox Solar, your local Northern Colorado solar experts, is here to explain the ins and outs of Colorado Solar Tax Incentives and rebates available for new solar installs in Colorado:

City of Fort Collins Solar Rebates
If your home or building is located in Fort Collins, you may be eligible for the Fort Collins Utilities Solar Rebate Program.  Through this program, you may get a rebate of up to $1,500 for new solar systems within the city. Depending on your system, you may also receive credit for any extra electricity generated by your solar system through the utility’s net metering program. Learn more about this rebate here.

City of Boulder Solar Rebates
If you’re a resident of Boulder and choose to install solar on your home or building, you may be eligible for the $500 solar rebate offered on new installs. You also may be eligible to sell your extra power back to the grid. Click here to learn more about program requirements and the application process.

XCEL Energy Solar*Rewards® Program
If you’re on XCEL energy and make the move to solar, you may be eligible for their solar incentive program. In this program, customers with solar will be compensated on a performance-based incentive (PBI) system where you can receive $0.005 per kilowatt-hour (kWh) based on what extras your system produces. Click here to learn more about what this program entails.

PRPA Efficiency Rebates
Platte River Power Authority provides utilities to users in Estes Park, Fort Collins, Longmont, and Loveland. They have a wide variety of efficiency offerings under one program called Efficiency Works™. You can be eligible for rebates based on several home upgrades. Learn more about the program here.

City of Loveland Energy Credits
For anyone who lives in the City of Loveland that owns, operates, and maintains their own generation equipment, such as solar, have the option for interconnection with the Loveland electric grid. Excess energy produced and delivered to the utility will be credited based on the current Self-Generation Rate. Learn more about how this program works here.

Federal Solar Tax Incentives
In addition to Colorado solar incentives, the federal government also allows a tax break for your solar investment. The Investment Tax Credit (ITC) is the federal government’s version of the solar tax credit. This credit allows homeowners who invest in solar to deduct 30% of the cost of installing a solar energy system from your federal taxes. This tax credit has been extended and now follows the following deductible schedule:

  • 2018 – 2019: Through the end of 2019, you can still deduct the full 30% of the cost of your solar system from your federal taxes.
  • 2020: Beginning in 2020, homeowners or business owners who choose to have solar installed or their home or commercial building can deduct 26% of the cost of the solar from federal taxes.
  • 2022: As of 2022, residential and commercial solar installs can only deduct 22% of the total cost of the system from their federal taxes.
  • 2023 and Later: By the end of 2023, commercial building owners can only take 10% off the cost of the system from their federal taxes. As of now, there is no federal tax credit for residential installs beyond 2022.

If you’re on the fence about getting solar, you should act by the end of 2019 to leverage the full federal solar tax incentives. Click here to learn more about the ITC.

Unfortunately, the State of Colorado does not currently offer any state tax credits for residential or commercial solar installs at this time.

By taking advantage of the existing Colorado Solar Tax Incentives and rebates, your solar system is still a wise investment. You’ll not only experience benefits such as reduced electricity bills, higher property values, and a reduced carbon footprint, you’ll also be able to finance your system better than you may have thought. If you’re ready to learn more about investing in a solar system for your home or building, contact Sandbox Solar. We’ll help you understand the available rebates and incentives, as well as the best financing options for your needs. Let’s get started!

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