Economic Incentives

Colorado Solar Incentives
The 2009 American Recovery and Reinvestment Act (ARRA) includes a number of important tax credits and other incentives for solar electric and solar hot water systems which are in effect until December 31, 2016. Below are highlights of economic incentives you may be able to benefit from in installation a new solar system. For a complete listing of Colorado incentives, visit: Colorado Incentives.

Property and Sales Tax Credits
Colorado enacted legislation in April 2007 to authorize counties and municipalities to offer property or sales tax rebates to residential and commercial property owners who install renewable energy systems on their property. This 30 percent tax credit applies to a solar PV system. An Investment Tax Credit (ITC) of 30 percent of the total installation cost can also be claimed on the purchase of a qualified solar water heating system used for a purpose other than heating swimming pools and hot tubs.

Net Metering
In December 2005, the Colorado Public Utilities Commission (PUC) adopted standards for net metering allowing customers who generate electricity at their site to receive a kilowatt-hour (kWh) credit to the customer's next bill. If the customer's generation exceeds consumption in a calendar year, the utility must reimburse the customer for the excess generation at the utility's average hourly incremental cost for the prior 12-month period.

Solar on Federal Property
The American Recovery and Reinvestment Act appropriates $5.5 billion for the purpose of constructing and repairing Federal buildings to increase energy efficiency. Application for these funds may include installing solar energy equipment.