Colorado Solar Incentives
& Tax Credits 2026
Colorado solar owners: double battery incentives make 2026 the year to add storage. Discover 5 programs that could save you $8,000–$16,000+ on your solar investment.
Potential Savings
$8,000–$16,000+
Programs Available
5
Avg System Size
7.5 kW
Net Metering
Strong
Key Deadline: December 31, 2026
Colorado battery storage state tax credit (10%) expires end of 2026
Available Incentives & Programs
All current solar incentives for Colorado homeowners
Battery Storage State Tax Credit
10% of cost
State tax credit for battery storage installations. Minimum 3 kWh capacity required. Available through end of 2026.
Xcel Energy Solar*Rewards
$1/watt (up to $5,000)
Upfront rebate for Xcel Energy customers. 2025 budget was fully allocated — watch for 2026 reopening.
Xcel Renewable Battery Connect
$350/kW (up to $5,000)
Battery rebate plus $100/year for 5 years. Income-qualified: $800/kW. 94% of allocated funds still available!
Property Tax Exemption
100% exemption
Full exemption for added home value from solar installation.
Sales Tax Exemption
2.9% state tax waived
State sales tax waived on solar purchases.
Net Metering in Colorado
One of the strongest net metering policies nationally. Full kWh-for-kWh credit rollover (1:1 ratio) that rolls over indefinitely (no annual expiration). Applies to all utilities and co-ops.
Battery Storage Opportunity
Colorado offers a rare double incentive: state tax credit (10%) PLUS Xcel battery rebate ($350/kW). With 94% of Xcel battery funds still available, 2026 is the optimal year to add storage.
Check Battery EligibilityTop Solar Cities in Colorado
Find Out Exactly What You Qualify For
Get a personalized report identifying every federal, state, and local incentive you're eligible for in Colorado. Includes dollar estimates, application guidance, and matched installer recommendations.
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