Solar Companies in Colorado
5.5 hrs/day
Peak Sun Hours
$0.14/kWh
Electricity Rate
$13,860
Avg. System Cost (6kW)
Colorado is one of the top solar markets in the Mountain West, combining 300 days of sunshine per year with strong policy support. The state averages 5.5 peak sun hours per day, and the high altitude actually boosts panel efficiency - solar panels perform better in cooler temperatures, and Colorado's thin atmosphere allows more direct solar radiation to reach panels than at sea level in states at similar latitudes.
Xcel Energy, the dominant utility serving the Denver metro area and Front Range communities, offers the Solar*Rewards program, which provides performance-based incentives on top of net metering credits. Colorado's net metering law requires investor-owned utilities to credit excess generation at the retail rate, and the state's renewable energy standard mandates that utilities source 30% of their electricity from renewables. Sales tax exemption and property tax exemption for solar further sweeten the deal.
Denver, Colorado Springs, Fort Collins, and Boulder are the primary solar markets. The average 6kW system costs about $13,860 after the federal credit, with payback periods of 7-9 years. Colorado's community solar garden program is also nationally recognized, allowing renters and homeowners with unsuitable roofs to subscribe to shared solar arrays. With Xcel Energy committed to 80% carbon reduction by 2030, solar adoption across the state continues to accelerate.
Solar Incentives in Colorado
Federal ITC: 30% tax credit on total system cost (through 2032)
Net Metering: Full Retail
State Tax Credit: No state-level credit
Colorado requires investor-owned utilities to offer net metering. Xcel Energy provides a Solar*Rewards program with performance-based incentives. The state exempts solar equipment from sales tax and offers a property tax exemption.