What Can You Claim From Colorado's Solar Rebates?
Colorado is one of the states that receives the most sunlight in the US, making it a great place for solar energy. There are several financial advantages available to make the conversion to solar even more alluring, in addition to the gorgeous scenery and climate. The Solar Rebate Program, which offers homes a rebate for installing a solar energy system, is one of these incentives. We'll go through the various solar rebates Colorado has to offer and how to apply for them in this blog post.
What does Colorado's Solar Rebate Program Entail?
A Colorado effort called the Solar Rebate Program provides payments to locals who install solar panels on their residences. The initiative aims to promote the usage of renewable energy while assisting in lowering Colorado's carbon impact. Both residential and commercial installations are eligible for rebates, and the amount of the reimbursement is based on the system size.
Additionally, the refund can be used to lower the price of solar panel installations, making them more accessible to households in Colorado. The program is offered to both residential and commercial users and is run by Xcel Energy, the biggest electric utility in the state.
Available Solar Rebates in Colorado
Now is a wonderful time to take advantage of the Solar Rebate Program if you live in Colorado and are thinking about installing solar panels on your home. Depending on the size of your solar panel installation and whether you are a home or commercial customer, there are various rebates and incentives available. Solar panels can now be purchased by Colorado families at a lower price thanks to the rebates. The following are some of the current rebate and incentive schemes in Colorado:
Credit for Federal Solar Investment (ITC)
To begin with, the Federal Solar Tax Credit is available for all solar panel installations in the United States. This tax credit can be utilized to lower your federal income taxes and is equal to 26% of the price of your photovoltaic (PV) solar energy system. Installed solar energy systems for homes purchased between 2020 and 2022 are eligible for this current tax credit. The ITC will be decreased to 22% for 2023.
Solar*Rewards® Program from Xcel Energy
Xcel Energy, the largest electric company in the state, is one of the most well-known businesses in Colorado that provides solar subsidies. They have a program called Solar*Rewards® that offers rebates to its clients who install solar water heating or photovoltaic (PV) systems.
Since Xcel Energy is providing a performance-based incentive (PBI), the size of your rebate will depend on how much solar energy your system actually produces. You might get paid $0.0375 for each kilowatt-hour (kWh) of solar energy generated by their system as a customer. Systems with a power range of 25.01 kW to 500 kW are eligible for this discount. Additionally, their clients are qualified for net energy metering, which may reduce the price of their solar installation even more.
Holy Cross Energy Rebate
About 52,000 individuals in central and western Colorado are served by Holy Cross Energy, a regional energy cooperative. To entice clients to install rooftop solar PV systems, they are providing a per-kilowatt refund. The incentive starts at $500 for the first 6 kW and decreases for larger installations. Therefore, with the Holy Cross Energy rebate, homeowners that install an average 6kW solar system can reduce their installation expenses by up to $3,000.
Colorado Springs Utilities Renewable Energy Rebates
Another regional utility provider that provides a subsidy for solar energy systems is Colorado Springs Utilities (CSU). For new solar installations, they are giving customers a discount of $0.10 per watt. The rebates and tax credits might cover up to 40% of your system expenditures, depending on how your installation is done. If your PV system is at least 500 watts AC and up to 120% of your usage in size, you may be qualified for this refund.
Energy Smart Colorado Rebates
Homes in Pitkin, Eagle Valley, including Eagle County, the Town of Vail, and Summit County are eligible for a reimbursement from Energy Smart Colorado ranging from $400 to $2,500 for solar installations.
Fort Collins Utilities Solar Rebates
For clients installing new photovoltaic systems, Fort Collins Utilities also provides a solar rebate for both residential and commercial users. For recently installed systems, they're giving away up to $1,000. Through their net metering program, you can also get paid for the electricity that their PV system generates.
How to Apply for and Receive Rebates
You must fulfill a number of requirements in order to be eligible for solar subsidies.
You must own the solar energy system and have it installed at your primary residence or a second home in order to be eligible for an ITC. Additionally, the system must be brand-new and cannot have been utilized in the past to obtain the ITC. It's crucial to remember that in order to qualify for the ITC, you must owe federal taxes.
For the majority of utility company rebates, you must be a customer and have a brand-new solar energy system installed. While some businesses might demand that your system be connected to the grid, others might not. In order to find out what is required, it's important to verify with your utility provider as there are additional requirements that differ from company to company.
If there are any solar rebates or incentives offered, you can also inquire with your local government. It's worth checking to see if there are any accessible solar rebates and incentives where you reside because many states and municipalities do.
Solar rebates and incentives are a terrific method to encourage people to switch to solar energy because they can save you hundreds of dollars on installation fees. Check to see if there are any solar incentives, rebates, or tax credits available in your neighborhood and with your utility provider if you're considering installing a solar energy system. Your solar installation could cost thousands of dollars less as a result.
If you want to dig deeper on how to save more when having a solar energy installed to your property, you can head over to https://energygenius.solar/ to learn more.