Steps for Going Solar
Determining Solar Incentives and Financing
A variety of solar incentives can help you finance your solar installation. Read about the incentives below, and visit the Database of State Incentives for Renewables & Efficiency (DSIRE) to learn more.
- The Federal Residential Renewable Energy Tax Credit gives homeowners a 26% and 22% tax credit based on the total cost of their solar installation for systems installed in 2020 and 2021, respectively. Based on federal policies as for summer 2020, residential solar energy systems will not qualify for a federal tax credit from 2022 onward. However, solar customers are encouraged to stay tuned to federal changes.
- Similarly, the Business Energy Investment Tax Credit provides a 26% and 22% tax credit to businesses that install specific types of renewable energy, including solar, for systems installed in 2020 and 2021, respectively. However, this tax credit rate will reduce to 10% from 2022 onward. Learn more about the Federal Tax Credits from the above-mentioned DSIRE database and Solar Energy Industry Association (SEIA).
- As of summer 2020, the State of Colorado provides property, sales and use tax exemptions for components used in renewable energy generation.
- Routt County participates in the State of Colorado’s Commercial Property Assessed Clean Energy (C-PACE) program, which enables owners of eligible commercial and industrial buildings to finance up to 100% of energy efficiency, renewable energy and water conservation eligible improvements. Financing is provided by private capital providers at competitive rates with repayment terms up to 25 years.
- The Colorado RENU Loan is a statewide residential loan program sponsored by the Colorado Energy Office in partnership with Elevations Credit Union. RENU makes home energy upgrades easy and affordable by offering low-cost, long-term financing for energy efficiency and renewable energy improvements.
Learn more about solar financing from EnergySage Solar Financing.
Project Considerations
- System Size: The size of your solar system will be based in part on how much energy you consume. Use your energy bills from the past year and the National Renewable Energy Lab’s PVWatts Calculator to find how many kilowatt (kW) of capacity and how many panels your solar system will need.
- Solar Access and Easement: Colorado's solar access laws, which date back to 1979, prohibit any residential covenants that restrict solar access. In 2008, H.B. 1270 extended the law to protect installations of wind turbines that meet the state's interconnection standards and certain energy efficiency measures including awnings, shutters, and other shade structures; garage fans; energy-efficient outdoor lighting; retractable clotheslines; and evaporative coolers. Some exceptions are made to allow for aesthetic requirements that do not significantly increase the cost of the device or decrease its performance. H.B. 1270 further protects owners of solar or wind energy systems by awarding reasonable attorney fees to the prevailing party in any court case involving the significant increase in the system's cost based on aesthetic requirements. For more information, check out the HOA Solar Action guide prepared by Solar United Neighbors.
Colorado also allows property owners to agree voluntarily to solar and wind easements with their neighbors for the purpose of protecting and maintaining proper access to sunlight and wind. The statute provides details about the process for filing an easement and includes provisions regarding the reversion of easements.