With an average of 245 sunny days per year in Colorado, it makes perfect sense to harness the sunshine to power your home for a cleaner, safer, and more affordable solution. As 100% of electricity is tipped to come from carbon-free renewable sources by 2050, residents of Colorado continue to benefit from solar rewards programs and incentives to help them save money as they help sustain our planet.
Let’s take a look at the different ways homeowners can save when switching to solar.
” Even if we didn’t have greenhouse gases, were going to have to move away from fossil fuels, as we’re going to run out. They’re finite, whereas solar and wind are infinite. ” ~Ted Turner
Xcel’s Solar*Rewards Performance Based Incentive
If you’re an Xcel customer in Colorado, you should sign up for their Solar Rewards program. It will pay you on an continuing basis for the amount of kwh you produce with your solar panels.
You sign a contract to give your renewable energy certificates to Xcel for 20 years. They will pay you for the first 10 years at a rate of $.07/kwh. On an average sized 6kW system, you can expect to reap about $700 annually or $6,500 over those ten years.
Net Metering in Colorado
Net Metering is a program that allows Colorado Spring Utilities’ customers to “bank” unused solar generation on the grid until a time when their homes energy usage is greater than their solar production. This allows net daytime generation to be used at night, and net summer excess to be used during the winter months.
Some of the solar energy produced by your system is used immediately by your home. During some periods, your solar production is greater than your home’s use. At these times, that excess energy, above what the home can use, gets sent back, through the Billing (“Net”) Meter, to the grid.
At other times, your home needs more energy than your solar can effectively produce. At these times, your home uses energy from the grid (it might use both solar energy and energy from the grid, or only energy from the grid, depending on what is available).
In short, net metering makes sure that you get credit, either in energy or in cash, for every bit of solar energy your panels produce.
Colorado Solar Sales Tax Exemption
Colorado is concentrating on powering the entire state with renewable energy by 2050. The Colorado Solar Sales Tax Exemption means that you don’t have to pay to any state sales tax when you buy a solar panel system!
Colorado Solar Property Tax Exemption
The state of Colorado has implemented a Property Tax Exemption. This means that you don’t have to pay any property tax on the increased property value when you sell your home due to the solar panel installation increasing value.
The above Colorado solar incentives provide abundant reasons to invest in a solar energy system to decrease your electricity bills in 2023 and beyond. With plenty of sun all year round, Colorado also provides a range of tax incentives for installation, running fees, energy costs, and more. With that in mind, there’s never been a better time to invest in a Colorado solar panel system!
For more information about installation solar panels on your property or commercial business, contact us today.