Colorado Springs Solar Panels: Cost and Local Incentives

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Colorado Springs solar panels

Are you wondering if solar is the right option for you? Solar power in Colorado Springs is a great way to save on energy costs and lower your carbon footprint. If you use a solar battery, you can maintain power even when the grid goes out. You may even be able to sell electricity back to the local utility through net metering. Read below to find out more about the costs of solar panels in Colorado Springs, solar incentives, and the possible savings you can gain from solar panels over the years.

Cost of solar panels in Colorado Springs

What you will pay for solar panels in Colorado Springs depends on several factors, such as the installer you work with and the system size you choose. The average cost of solar panels in the U.S. is $3.67 per watt with an average 8.6 kilowatt (kW) system size, according to the Berkeley Labs Tracking the Sun report. 

The average residential solar panel system size in Colorado is 6.8 kW, as listed by the Tracking the Sun report. Also in that report, the average cost per watt for residential systems in Colorado is $4.08 per watt. A 6.8 kW system at the price of $4.08 per watt would put homeowners paying around $27,744 for a solar panel system in Colorado Springs.   

How much do solar panels cost in Colorado Springs?

Different factors like the size of your roof, the amount of shade in your yard, and the level of sun exposure your roof gets will determine the solar system size you’ll need to install, as well as the average amount of energy your household uses in a year. We’ve already discussed what you would pay for a median size system in Colorado Springs; however, you might need something smaller or larger.

The Tracking the Sun report lists the median range of solar system sizes in Colorado as being between 3.7 and 7.9 kW. If you pay the median rate in Colorado of $4.08, the smaller 3.7 kW would cost you $15,096 before applying any incentives. The larger 7.9 kW system would cost you about $37,920.

Though solar panels can represent a significant investment, your solar panels will pay for themselves over time with the savings on your electric bills. You can figure out how long your payback period will be by dividing your anticipated cost (your total cost after applying the 30% federal tax credit) by the average yearly cost of energy you tend to pay. If you claim the 30% federal tax credit, have the average state electric bill of $105.65, and pay $27,744 for the full system, it would then take 15.3 years to pay back. Colorado ranks as having one of the lowest energy rates in the nation, but energy rates do tend to rise; over a 20-year period, you could also save about $6,000 in the Colorado Springs area.

Average solar panel cost by system size in Colorado Springs

At the time of writing, the U.S. national average cost per watt for solar panels is at $3.67. Colorado’s median costs include:

You can determine the solar system size you would need by figuring out how much electricity you use each month. You can find this listed on your electric bill in Kilowatt hours (kWh).

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 Colorado Springs

If you decide to purchase your solar panels, the upfront costs can seem like a large investment. However, in addition to the federal tax credit, there are state and local incentives available to make solar in Colorado affordable. Here are just a few of the many you can access:    

Solar companies in Colorado Springs

There are several quality solar installers to choose from in Colorado Springs, and SaveOnEnergy partners with top solar companies to connect you with the installer that works for you. Also browse our guide on solar panel installation to find out more about the process. If you are ready to find a solar installer near you and learn more about the process, fill out the form or call the number on this page to connect with one of our solar experts.     

Is going solar in Colorado Springs right for you?

If you are a resident or business owner in Colorado Springs, you have a variety of solar payment and access options. Read on to learn how solar energy can help renters, homeowners, and communities in Colorado Springs improve the environment and save on their energy bills.  

Solar for renters

For those renting their property, it’s not always an option to install your own solar. However, there are plenty of options for renters to enjoy the benefits of solar. Consider discussing the possibility of installing solar with your landlord; they may be willing to invest in it if they are aware of the advantages and savings. 

If you just want to access solar on a more independent level, look into smaller options like portable patio arrays. Small devices like solar phone chargers can also help you benefit from solar energy. 

Solar for homeowners

If you own your home, you have the option to purchase your panels. However, you also have access to a variety of financing programs to help. A financing option that many homeowners like is Solar Power Purchase Agreements (PPAs). These contracts allow a solar developer to manage and install the system directly on your property. You would then have direct access to the electricity the array creates.  

You could also look into leasing the full array, which many installers do offer as an option, or other more conventional financing options, such as cash-back refinancing, home equity lines of credit, or home equity loans.

Community solar

If you find the upfront costs of installing solar panels to be a barrier to solar, you can look into community solar. Community solar projects make solar available to many residents from one area  by allowing them to subscribe to a central solar farm. The electricity generated by this farm is then delivered to the subscribers’ homes. Community solar is becoming a much more popular option, since it can be a more affordable way to get solar because it cuts those upfront costs. 

Community solar can also help anyone who can’t install solar. For instance, if your home has a yard with a high amount of shade, an older roof that won’t support the weight of the solar panels, or a roof that does not get enough direct sunlight during the day, installing panels on the roof might not even be possible. But community solar can help.