Are Solar Panels Worth It in Colorado?

Colorado’s stunning scenery of snow-capped mountains and its mild climate have inspired residents to do right and protect its beautiful landscape for future generations. Colorado was one of the first to pass legislation on renewable energy and is still a leader in solar energy adoption.

Colorado was the first state in the U.S. to adopt a Renewable Energy Standard. This foresight has had many benefits including:

  • There is enough solar power to power 452,783 homes.
  • 6771 new jobs were created in the solar energy sector.
  • The country ranks 13th for solar power adoption.
  • Solar energy investment totaling $4.8 billion.
  • 93,315 installations completed.
  • Future growth projections of 3,712 megawatts in the next five years, enough to power more than 700,000.

You might wonder, are solar panels worth the cost in Colorado, with so many of your neighbors turning to solar?

It is an affirmative “Yes!” Colorado solar panels have become more affordable every year. We’ve highlighted the top reasons Coloradoans should make the switch to harnessing solar energy.

Top 3 Reasons Why Colorado Solar Panels Are Worth It

1. Abundant Sunshine

Coloradoans have an average of 242-285 days of sunlight per year, depending on where they live. Solar specialists can assess your home and recommend a customized solar solution to maximize your solar energy efficiency. Don’t be concerned about snow. Colorado solar panels can thrive in cold temperatures.

2. Federal Tax Incentive

The federal solar credit is also known as the investment credit (ITC). It gives homeowners who go solar a cut on their federal taxes. If you are eligible, you will receive a credit of 26% on your federal tax bill for the cost of a solar energy system.

The cost of Colorado solar panels and their installation are eligible expenses.

The deadline for ITC has been extended multiple times over the years. The 26% credit is due to expire in 2022. The amount will drop after that.

  1. 2020-2022: The 26% federal tax credit is still in force.
  2. 2023: The 26% federal credit for taxes is reduced to 22%.
  3. 2024: There is no federal tax credit for residential solar energy systems as of 2018.

You don’t want to miss the opportunity to receive a significant credit on your federal taxes. This could make Colorado solar panels even cheaper. Talk to one of our solar energy experts to learn more about the incentive.

3. Rising Electricity Bills

The 12-month period February 2021-2022 saw an 8.1% increase in electricity rates in Colorado. Inflation rates have an impact on everything, from groceries to energy. Prices will likely remain high even if inflation slows down.

Colorado is loved by its residents, but it can be expensive. The median home price is $488,000. This is 67% more than the $291,700 national average. Colorado ranks 121.1 in Sperling’s Best Places cost of living index. The national baseline score is 100.

You can save money by using solar energy to power your house. You could reduce or eliminate them entirely in certain cases. The answer is “yes” if you are looking for lower electricity bills.

This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD Solar offers knowledgeable and efficient solar companies in Lakeland FL! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple. ESD excels at offering you the best in solar value!