How Much Money Can Solar Save You In Colorado?

Famous for its sunny climate, clean air, and some of the country’s most impressive national parks, the Centennial State has so much to offer. On average, Colorado gets 300 sunny days per year, making solar a smart long-term investment. In fact, Colorado weather is ideal for solar panel efficiency because, contrary to popular belief, solar panels work best in cool and even cold weather rather than in blistering hot temperatures.

5 Reasons to Go Solar in Colorado

If you’re considering solar for your home in Colorado, now is the perfect time to make the switch. As one of the country’s sunniest states, Colorado homeowners can save thousands of dollars on electricity bills over the lifetime of their solar system. 

Here are five of the biggest reasons to say ‘yes’ to solar. 

1. Protection against raising utility rates and inflation 

It’s no secret that utility rates are on the rise, and Colorado residents are definitely among those affected. When you switch to solar, you’re essentially making yourself immune to price hikes set by your utility company because your home is running on solar energy produced from your system’s solar panels rather than relying on the local grid. 

Those who add one or more solar batteries to their project will be even more energy independent and will rarely– if ever–need to rely on the local grid for excess energy to power their homes. Plus, they’re protected during blackouts. 

2. Increased solar panel efficiency due to higher altitudes

As we cover in our weather guide to solar, solar panels are efficient in just about all weather conditions. Weather does play a role in how efficient a system is, but not a significant amount. Solar panels are made from durable materials that are meant to weather just about any weather condition, from rain and sleet to snow and even fallen tree branches. 

At the same time, studies show that solar panels at higher altitudes receive more direct solar radiation and therefore more power output. Higher altitude increases production due to there being less atmosphere for the solar radiation to pass through. In Colorado, the median increase in solar panel efficiency due to high altitudes is just shy of 10-percent. 

3. Federal and state incentives that lower the total cost 

Colorado homeowners are able to take advantage of several federal and state wide incentives for going solar. On a federal level, homeowners can receive a 30% tax credit on their installed PV systems. 

Other incentives for Colorado homeowners include:

• State Sales and Use Tax Exemption: Homeowners have a 2.9% sales tax exemption on their solar equipment costs. Applicable on solar panels and other specified technologies.
• Property Tax Exemption: This tax exemption applies to the added monetary value a home has after installing a solar system. The average home value increase is 4.1 percent.
• Cash rebates: For those who qualify, EnergySmart Colorado offers rebates from $400 to $2,500. Holy Cross Energy has a program as well, and rebates cap at $3,000. 
• Weatherization Assistance Program (WAP): A program designed to improve energy efficiency of low-income households in Colorado. Those eligible have access to weatherization services such as roof repairs and insulation. 

4. Competitive net metering programs for further savings

If you’re new to net metering, think of it simply as a type of billing tool that allows homeowners to sell the excess energy their solar systems produce to their local utility company. In return, they receive credits that they can use later on–for example, to power their homes during a blackout or during the night. 

Both Xcel Energy and Black Hills Energy offer net metering programs in Colorado, with Xcel Energy’s being particularly advantageous for homeowners. For those who invest in one or more solar batteries, they can store their excess energy directly in the batteries themselves, and then use their storage whenever needed. 

5. Solar prices are lower than the national average

As more homeowners adopt solar energy for their homes, the price for equipment and installation falls. This is the case in Colorado, where prices have fallen by a staggering 54% in the past decade. Federal and statewide incentives lower the initial investment even more, making solar more achievable for more people than ever before. 

In terms of savings potential, Colorado homeowners are immediately set up for success. According to industry research, a 10kW system typically sets homeowners back about $28,000. Going solar with Monalee will save them up to 50% off the total cost, making ROI achievable in just a few years. 

At Monalee, we’re also able to complete the solar installation process in about half the time it takes otherwise, and a big reason for this is that our advanced machine learning eliminates many of the soft-costs that are historically associated with going solar. In Colorado, here’s what a typical timeline looks like.

How much can solar save you in Colorado?

Making the switch to solar is one of the best investments you can make as a Colorado homeowner. Systems are designed to last up to 25 years, during which time you’ll be saving on monthly electricity bills and fully powering your home with your panels. 

Below is a graph that shows what the average initial investment is for homeowners who choose Monalee vs. choosing a traditional solar company in their area. 

Aside from our patent-pending technology that can generate interactive solar panel roof proposals in ten seconds or less, we remove commission-based salespeople and system designers from the process. Every soft cost we save on is passed on to our customer. 

In Conclusion

As with any significant investment, it’s important to weigh your options and take your time choosing a solar company you trust. Colorado offers both federal and statewide incentives that make the initial cost of going solar less expensive. Programs such as net metering allow you to earn credits from the local grid to use at a later time to power your system. Colorado’s higher altitudes will increase the efficiency of your home solar system by up to ten percent.