Putting in residential photo voltaic panels in sunny Colorado tends to be inexpensive than in different states, attributable to decrease common power consumption and smaller common photo voltaic installations. Eco-friendly insurance policies on this state additionally make photo voltaic a great way to save lots of on electrical energy payments long-term.
The everyday price for an average-sized photo voltaic panel system in Colorado is $28,933 earlier than incentives, and as little as $20,253 after the federal solar tax credit. This whole is predicated on the state’s median dollar-per-watt price of putting in a photo voltaic system and common residential system dimension, which was a low 9.3 kWs within the second half of 2023.
Typical price of dwelling photo voltaic system earlier than federal photo voltaic tax credit score | ||
Typical price of dwelling photo voltaic system after federal photo voltaic tax credit score | ||
Supply: EnergySage, a photo voltaic and residential power product comparability market based in 2012. Information is from the second half of 2023. |
The median price per watt of put in capability, $3.10, is without doubt one of the costlier choices within the U.S. However the common system dimension in Colorado is on the decrease finish at 9.3 kW. This can be influenced by Colorado web metering guidelines that particularly permit web metering for techniques underneath 10 kW. Common month-to-month consumption of electrical energy can also be comparatively low in Colorado, with the common family consuming 572 kWh of power per thirty days, in accordance with EnergySage .
Interconnection improve prices
Some Colorado prospects have discovered that their native energy grid gained’t help interconnecting photo voltaic panels to the utility grid with out expensive upgrades. For instance, Xcel Power, Colorado’s largest utility firm, advised a home-owner he’d have to pay $7,000 for a brand new transformer to get his photo voltaic panels related to the grid as a result of his neighborhood’s system couldn’t help one other photo voltaic set up, The Colorado Sun reported.
“Interconnection is absolutely essential,” says Mac Scott, communications director for Colorado Photo voltaic & Storage Affiliation (COSSA). “Householders have run into being liable for upgrades required to make renewable power attainable. Anyone may get to the top of this funding and discover out that there’s an sudden price.”
The excellent news is that Senate Invoice 218 , which was just lately signed into regulation, offers funding to assist qualifying massive retail utilities — together with Xcel Power — make interconnection upgrades. It additionally limits buyer costs for these upgrades to $300 or much less for techniques which are 25 kWs or smaller.
Internet metering in Colorado
Colorado’s net metering agreement presents one-to-one credit score once you promote again photo voltaic power to the grid for residential techniques as much as 10kWs. Internet metering is a billing conference that offers you credit score for extra energy your system produces in the course of the day, which will be utilized to electrical energy prices throughout darkish or cloudy occasions of day when your system is utilizing extra energy than it is producing. One-to-one web metering means you get 1 kW of credit score towards your electrical invoice for each 1 kW your photo voltaic panels generate. This coverage, designed to encourage folks to go photo voltaic, makes it straightforward for residents with photo voltaic to maintain electrical energy payments as little as attainable. Not all states provide web metering, a lot much less one-to-one web metering.
In Colorado, in case you produce extra electrical energy than you employ, you possibly can find yourself with a unfavorable web utilization steadiness for electrical energy and credit in your account. These credit roll over indefinitely till you terminate service along with your utility, at which level any remaining credit are misplaced.
As extra photo voltaic panels are put in in Colorado, web metering agreements might change.
Tax incentives and rebates in Colorado
Colorado Photo voltaic For All
A $156 million grant from the Environmental Safety Company referred to as Colorado Photo voltaic For All permits income-qualified candidates to use for and obtain entry to solar energy. The construction of the plan and utility course of continues to be in improvement on the time of publishing.
Native rebates and incentives
Colorado additionally has quite a lot of domestically administered rebates and incentives, a few of which residents can apply for by Power Sensible Colorado. The accessible incentives fluctuate based mostly on location. Within the Roaring Fork Valley, as an illustration, residents can get rebates for 25% of a mission’s price, or as much as $2,500, for each residential photo voltaic panel techniques and storage techniques.
Nonetheless, many utilities don’t take part in Power Sensible Colorado. To cowl your bases, it’s value asking your utility supplier if it presents incentives or rebates. You may also search the Database of State Incentives for Renewables & Efficiency (DSIRE) , a mission maintained by the North Carolina State College, to seek out out about advantages.
Power storage in Colorado
Photo voltaic batteries, which let you retailer the electrical energy your own home generates, add substantial price to a photo voltaic panel set up. Since Colorado has one-to-one web metering, batteries may not prevent a lot in your electrical invoice. However they’ll present backup energy within the occasion of an outage, which will be particularly helpful in distant areas with harder-to-access energy utility traces.
Colorado’s common put in battery price ranges from $16,575 to $22,425 earlier than the federal tax credit score kicks in, in accordance with 2024 EnergySage data. This could add a few years to the payback interval on your photo voltaic panel system.
The state of Colorado presents a ten% tax credit score towards the acquisition worth of power storage techniques like battery backups. It’s utilized the point-of-sale, so your battery storage installer will sometimes apply the low cost once you pay.
What sorts of utility firms exist in Colorado for interconnection with photo voltaic panels?
What requirements and targets has Colorado set for renewable power?