Colorado Springs · CO
Solar Companies in
Colorado Springs, CO
Colorado Springs homeowners pay $14,900–$21,800 for a typical 8 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Colorado's property tax and sales tax exemptions remain active. At Colorado Springs Utilities (CSU)'s rate of $0.118/kWh, most systems pay back in 14–18 years.
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5.5 hrs/day
Peak Sun Hours
$1,050/yr
Avg. Annual Savings
14–18 yrs
Payback Period
$14,900–$21,800
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Colorado Springs
Why Colorado Springs Homeowners Are Going Solar in 2026
Colorado Springs has excellent solar resources (5.5 peak sun hours/day) but CSU's below-retail net metering rate (~$0.04/kWh) and lower utility rate ($0.118/kWh) extend payback periods compared to Denver. The $0.05/watt CSU rebate and Colorado's sales and property tax exemptions partially offset the loss of the federal ITC. Payback periods of 14–18 years are typical for purchased systems in 2026.
Key solar facts for Colorado Springs
- 5.5 peak sun hours per day
- Colorado Springs Utilities (CSU) average rate: $0.118/kWh
- Average monthly bill: $112
- Popular system size: 8 kW
- Permit timeline: Colorado Springs permits typically take 3–6 weeks. El Paso County has a streamlined solar permitting process for systems under 10 kW.
Active Incentives
Colorado Springs Solar Incentives in 2026
Colorado Springs Utilities Solar Rebate
RebateCSU offers a solar rebate of $0.05 per watt for residential installations, up to $500 for a typical 8 kW system. Rebate availability is subject to annual program funding — verify current status before installation.
Value: $0.05/watt (up to $500)
Colorado Net Metering (CSU)
Net MeteringColorado Springs Utilities credits excess solar generation at the avoided-cost rate (approximately $0.04/kWh), which is lower than the retail rate. This is less favorable than Xcel Energy's retail net metering in Denver.
Value: Avoided-cost rate (~$0.04/kWh)
Colorado Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from Colorado's 2.9% state sales tax. El Paso County and Colorado Springs city sales tax exemptions may also apply — confirm with your installer.
Value: 2.9%+ sales tax savings
Colorado Property Tax Exemption
Property TaxResidential solar installations are exempt from Colorado property tax assessments, so adding panels does not increase your annual property tax bill.
Value: 100% exemption on added value
Net Metering in Colorado Springs
Colorado Springs Utilities credits excess solar generation at the avoided-cost rate (~$0.04/kWh), which is significantly lower than the retail rate. This is less favorable than Xcel Energy's retail net metering in Denver — factor this into your payback calculation.
Solar Leases & PPAs in Colorado Springs
Solar leases and PPAs are available in Colorado Springs. Note that CSU's below-retail net metering rate makes ownership economics more challenging than in Denver — compare ownership vs. lease carefully with your installer.
How much does solar cost in Colorado Springs?
Detailed cost breakdown, financing options, and payback analysis for Colorado Springs homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Colorado Springs Solar FAQ
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Colorado Springs Solar at a Glance
Solar Installers Serving Colorado Springs and Surrounding Areas
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