Did you know that Denver has more than 300 days of sunshine per year? That’s 300 potential days to power your home sustainably and for less than what you pay renting power from the energy grid.

Why Go Solar in Denver This Year

For starters, installing solar panels can increase your home’s value by up to 4%, they actually function more efficiently in cold weather, and installation is more affordable than ever with local and federal incentives. So why not give it a shot and go solar in the Mile High City? Your wallet and Mother Earth will thank you.

Cost of Home Solar Panels in Denver

The average solar panel for home cost in Denver, Colorado was around $2.28 per watt in late 2023, making a typical 6 kW (6000 watt) solar system approximately $9,574 after claiming the 30% solar tax credit. However, it’s important to note that the cost of solar panels in Colorado can vary depending on factors such as system size, installation fees, and available incentives, which we’ll cover below. The average cost does include solar panels, mounting equipment, inverters, conduit and other components, installation labor, and project management including HOA approvals, permitting, and inspections.

How Much Will Solar Save You

Thanks to a surge in record-breaking US installations, the cost of adopting solar energy has become more affordable than ever before. In fact, solar energy is now becoming cost-competitive with the electricity provided by local utility companies. The upfront cost, generously subsidized by local and federal incentives, makes going solar worth the investment. When you consider that a solar system 6 kW in size can generate more than 9,600 kilowatt-hours (kWh) of energy per year and the average rate of energy in Denver is 15 cents per kWh, you could save around $1,440 on annual energy bills.

Denver Solar Incentives & Rebates
Numerous financial incentives are available from states, utility companies, and the federal government, further reducing the upfront costs of going solar. These incentives make it an opportune time for homeowners to consider making the switch to clean and renewable solar power.

Home Energy Rebates

The city of Denver offers Home Energy Rebates, which cover home improvements including solar installations. Rebates are available for owners of single-family homes, duplexes, and townhomes in Denver. You can also stack these rebates with other state tax incentives and rebates from Xcel Energy, as well as the Inflation Reduction Act.

Fort Collins Utility Solar Rebates

Fort Collins Utilities has launched the BOOST Incentive plan, providing enhanced rebates for residential distributed energy projects until May 31, 2024. New installations can receive up to a $1,500 rebate for solar, $3,000 for batteries, and $5,500 for combined solar and battery storage systems. Customers expanding existing systems are eligible for even higher incentives: up to $2,000 for added solar, $3,500 for batteries, and a substantial $6,000 for combined solar and battery storage upgrades.

Xcel Energy

Xcel Energy offers both the Solar Rewards Program and Renewable Battery Connect Program. Eligible customers installing solar panel systems designed to produce up to 120 percent of their average annual consumption can earn incentives ranging from $0.005 to $0.0375 per kWh, depending on their system’s size, for 20 years in exchange for the energy credits generated. Those residing within the Income Qualified / Disproportionately Impacted Community (IQ/DIC) areas could receive an enhanced incentive of $1 per watt of installed solar, capping at $7,000, or a 7 kW system. Eligibility for this incentive does not require the homeowner to be income-qualified themselves.

Renewable Battery Connect Program

This program allows participants to utilize their solar batteries during peak demand scenarios. By automatically discharging customer batteries to alleviate stress on the grid, Xcel Energy incentivizes participation with $500 per kW, up to 50% of the battery cost. For instance, a Tesla Powerwall owner could save an estimated $3,500. Income-qualified customers stand to gain even more, receiving up to $800 per kW, up to 75% of the equipment cost, which could mean $5,600 slashed off a Tesla Powerwall cost. Participants can further receive a $100 annual incentive for being part of the program.

Conclusion

Investing in solar panels in Denver offers long-term financial and environmental benefits. Understanding solar panels cost in 2025, Solar Panel Prices in 2025, and Solar Panel Cost Per Watt ensures homeowners make informed decisions about solar panel installation. By leveraging local, state, and federal incentives, you can significantly reduce upfront costs and maximize savings.

Proper solar panel maintenance, system monitoring, and working with experienced solar installers guarantee efficient and durable performance. Whether your goal is energy independence, lower electricity bills, or contributing to a cleaner environment, a well-designed solar energy system provides lasting value and sustainability.

Ultimately, going solar in Denver is not just a home improvement investment; it’s a commitment to renewable energy. By evaluating solar panels cost in 2025, exploring rebates, and planning for proper solar panel installation and maintenance, homeowners can enjoy reliable energy, reduced costs, and a positive environmental impact for decades to come.