Denver Solar Panels: Cost and Local Incentives

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Denver solar panels

There are many great reasons to invest in solar panels in Denver, from the city’s generous solar incentives to the region’s favorable weather conditions for solar energy production. If you’re considering switching to Denver solar power, you’ve come to the right place. Keep reading to find an overview of the benefits, costs, and options for going solar in Denver.

Cost of solar panels in Denver

The median price per watt for a solar system in Colorado is $4.22 — a bit higher than the national median price of $3.82. However, the total cost of solar panels in Denver will depend on several factors, including the system’s components and size. Plus, there are local, state, and federal incentive programs that can help you reduce the installation costs of solar. We’ll cover those programs in more detail on this page.

How much do solar panels cost in Denver in 2022?

As we’ve touched on, the cost of solar panels in Denver can vary quite a bit based on several factors. For instance, if you use a significant amount of energy every month, you’ll need a larger solar system capable of generating enough power for your home (which will increase the costs). Similarly, the costs will rise if you choose more expensive components — such as high-efficiency panels, roof shingles, or solar batteries.

Colorado’s median system size is 5.4 kilowatts (kW). With the median price per watt, this leads to a total cost of $22,972 before accounting for tax credits and state incentives. Despite the large upfront costs, solar can save you thousands over time.

In Colorado, the average monthly electricity bill is $103.24. With solar, you could eliminate this bill and save up to $1,238 per year. In roughly 12.9 years, your solar system could pay for itself. Then, 20 years after installation, you could save $8,697 in energy bills by opting for solar instead of traditional energy.

Average solar panel cost by system size in Denver

These are the median costs of solar installations in Colorado:

To get a better idea of what size system you’ll need, go through your most recent electricity bills and determine how much energy you’re using each month. If you can’t access your bills, you can use our calculator to estimate your consumption. 

After you’ve figured out how much energy you consume per month, you can determine the correct solar system size and price. If you want a system that covers 100% of your consumption, it will need to produce the same amount of energy you use per month or more.

There’s no denying that purchasing solar panels outright can be expensive. Fortunately, there are ways to bring down this cost. One of the best options is to take advantage of the federal tax credit — called the Residential Clean Energy Credit — which can reduce the upfront costs of solar panels by 30%. In this case, it would take the price of your 5.4 kW system down to $16,080. You could slash these costs even more if you qualify for local solar incentives.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Incentives for solar panels in Denver

Solar incentives lessen the solar panel installation costs in Denver, making green energy accessible to more people. If you live in Denver, you can take advantage of the following local, state, and federal incentives to save thousands on your solar panel purchase.

Solar companies in Denver

With so many solar installers in Denver, it can be tricky to figure out which one is best for your needs. That’s where SaveOnEnergy comes in. On our website, you’ll find a vast selection of solar energy resources covering everything from solar industry basics to tips for picking an installer. If you have questions about purchasing solar panels for your Denver home, you can reach a SaveOnEnergy solar advisor at the phone number on this page or by filling out our contact form.

Is going solar in Denver right for you?

These days, there are plenty of options for going solar in Denver — whether you’re interested in buying your solar panels outright, leasing them, or participating in a shared solar program.

Solar for renters

If you’re a renter in Denver, you can consider a solar lease or Power Purchase Agreement (PPA). There are several differences between the two options. However, both involve a solar company installing solar panels on your property, which you can use to generate power for your home. The company will retain ownership of the solar system, so you won’t need to cover the high upfront costs of solar installation.

Solar for homeowners

If you own your home, you can buy or lease your solar panels. Both are worthwhile options, but purchasing your solar system outright (either in cash or with a solar loan) will help you see more long-term savings. You can also increase your home’s resale value with a solar purchase. To use the federal tax credit, you’ll need to own your solar system (leases and PPAs don’t qualify).

Community solar

Alternatively, you can participate in one of Denver’s community solar projects. These programs allow you to band together with your neighbors and share access to a centralized solar array. Community solar projects are another smart way to save on ​​solar panels in Denver but still enjoy the benefits.