Denver · CO
Solar Companies in
Denver, CO
Denver homeowners pay $15,500–$23,000 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 Xcel Energy's rate of $0.138/kWh, most systems pay back in 12–16 years.
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5.5 hrs/day
Peak Sun Hours
$1,250/yr
Avg. Annual Savings
12–16 yrs
Payback Period
$15,500–$23,000
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 Denver
Why Denver Homeowners Are Going Solar in 2026
Denver's 5.5 peak sun hours per day is deceptively high for a northern city — the high altitude and 300+ sunny days per year produce more energy per panel than many sunnier-sounding markets. Xcel's Solar*Rewards program can add meaningful value if capacity is available, but waitlists are common — verify availability before factoring it into your decision.
Key solar facts for Denver
- 5.5 peak sun hours per day
- Xcel Energy average rate: $0.138/kWh
- Average monthly bill: $132
- Popular system size: 8 kW
- Permit timeline: Denver building permits for solar typically take 1–3 weeks through the city's online permitting system. Xcel interconnection approval adds 2–4 weeks. Denver has one of the more efficient permitting processes in Colorado.
Active Incentives
Denver Solar Incentives in 2026
Xcel Energy Solar*Rewards Program
Utility ProgramXcel Energy's Solar*Rewards program pays a per-kWh incentive for solar generation. The program has capacity limits and waitlists — check current availability with Xcel before committing.
Value: Per-kWh production incentive (capacity-limited)
Colorado Net Metering
Net MeteringXcel Energy credits excess solar generation at the retail rate under Colorado's net metering law.
Value: Retail rate credit
Colorado Sales Tax Exemption
Sales TaxSolar energy systems are exempt from Colorado state sales tax (2.9%), reducing upfront cost.
Value: 2.9% state sales tax savings
Colorado Property Tax Exemption
Property TaxResidential solar installations are exempt from Colorado property tax assessments for 10 years.
Value: 10-year property tax exemption
Net Metering in Denver
Xcel Energy credits excess generation at the retail rate under Colorado's net metering statute. Annual true-up: unused credits roll forward but do not pay out as cash.
Solar Leases & PPAs in Denver
Solar leases and PPAs are available in Denver through Xcel-approved installers. Colorado's strong solar resource and Xcel's rising rates make TPO economics attractive — $0 down options are common.
How much does solar cost in Denver?
Detailed cost breakdown, financing options, and payback analysis for Denver homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Denver Solar FAQ
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Denver Solar at a Glance
Solar Installers Serving Denver and Surrounding Areas
Our network of pre-vetted solar installers serves Denver and these nearby communities:
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