How to Get Solar Panels in Denver: Rebates Guide

Solar energy is no longer a futuristic concept—it’s a practical, cost-effective, and environmentally responsible choice for homeowners in Denver and across Colorado. With over 300 days of sunshine annually, Denver offers ideal conditions for solar power generation. But many residents hesitate to make the switch due to upfront costs and confusion around available incentives. This comprehensive guide demystifies the process of getting solar panels in Denver by breaking down every rebate, tax credit, and financial incentive available. Whether you’re a first-time homeowner, a long-time resident, or someone looking to reduce monthly utility bills, this guide gives you the exact steps, tools, and real-world examples needed to install solar panels at the lowest possible cost.

The goal of this guide is not just to inform, but to empower. By the end, you’ll know exactly how to navigate local and federal programs, avoid common pitfalls, and maximize your return on investment. Solar panels aren’t just about saving the planet—they’re about saving money, increasing home value, and gaining energy independence. Let’s walk through the entire process, step by step.

Step-by-Step Guide

Step 1: Assess Your Home’s Solar Potential

Before investing in solar panels, you need to determine whether your home is a good candidate. Start by evaluating your roof’s orientation, angle, and shading. In Denver, south-facing roofs receive the most direct sunlight throughout the year, making them optimal for solar panel efficiency. East- and west-facing roofs can still be effective, though they typically produce 10–20% less energy. North-facing roofs are generally not recommended.

Use free online tools like Google’s Project Sunroof or the National Renewable Energy Laboratory’s (NREL) PVWatts Calculator to estimate your roof’s solar potential. These tools use satellite imagery and local weather data to project how much energy your system could generate based on your address. Input your average monthly electricity bill to see how much of your usage solar could offset.

Additionally, inspect your roof’s condition. If your roof is older than 15 years or shows signs of wear—cracked shingles, leaks, or sagging—you may need to replace it before installing panels. Solar systems last 25–30 years, so installing them on a roof that needs replacement soon will result in costly removal and reinstallation fees.

Step 2: Understand Denver’s Solar Incentives and Rebates

Denver and the state of Colorado offer some of the most generous solar incentives in the country. Understanding these programs is critical to reducing your system cost by up to 50%.

1. Federal Solar Investment Tax Credit (ITC)

The ITC allows you to deduct 30% of the total cost of your solar panel system—including panels, inverters, mounting hardware, and installation—from your federal income taxes. This credit applies to systems installed between 2022 and 2032. After 2032, the credit steps down to 26% in 2033 and 22% in 2034. There is no income cap, and you can claim the credit even if you don’t owe taxes in the year of installation—you can carry forward unused credits for up to five years.

2. Colorado State Tax Credit

Colorado offers a state income tax credit of 10% of the system cost, up to $1,000. This credit is claimed on your Colorado state tax return using Form DR 0621. Unlike the federal credit, this one has a cap, so it’s important to combine it with the ITC for maximum savings.

3. Denver Solar Rebate Program

The City and County of Denver administers a residential solar rebate program through Denver Energy Challenge. As of 2024, homeowners can receive up to $1,000 in rebates based on system size and energy production potential. The rebate is calculated at $0.50 per watt for systems up to 10 kW. For example, a 6 kW system qualifies for a $3,000 rebate. However, funding is limited and awarded on a first-come, first-served basis. Apply early—applications typically fill up within months of the fiscal year opening.

4. Property Tax Exemption

Colorado law exempts the added value of a solar energy system from your property tax assessment. This means that while your home’s value increases with solar, your property taxes won’t rise as a result. This exemption applies statewide, including Denver, and requires no additional application—it’s automatic upon installation.

5. Sales Tax Exemption

Colorado also waives the 2.9% state sales tax on solar equipment purchases. This can save you hundreds of dollars depending on system size. Again, this exemption is applied automatically at the point of sale by certified installers.

6. Net Metering

Xcel Energy, Denver’s primary utility provider, offers full 1:1 net metering. This means for every kilowatt-hour (kWh) of excess solar energy your system sends back to the grid, you receive a credit on your bill at the full retail rate. These credits roll over monthly and can be used to offset winter consumption when solar production is lower. There is no cap on system size for net metering, and credits do not expire.

Step 3: Choose a Reputable Solar Installer

Selecting the right installer is one of the most important decisions you’ll make. Not all companies are created equal—some prioritize sales over service, while others offer transparent pricing and long-term support.

Start by compiling a list of installers certified by the North American Board of Certified Energy Practitioners (NABCEP). This certification ensures technicians have passed rigorous exams in design, installation, and safety. In Denver, look for companies with local experience—those familiar with Denver’s elevation, weather patterns, and utility policies.

Request at least three detailed quotes. Each quote should include:

• System size (in kW)
• Panel and inverter brands and model numbers
• Estimated annual production (kWh)
• Warranties (panel, inverter, workmanship)
• Upfront cost before and after incentives
• Payback period and lifetime savings estimate

Avoid companies that pressure you into signing immediately or offer “limited-time” discounts. Reputable installers will give you 7–14 days to review proposals. Ask for references from past Denver customers and check reviews on Google, the Better Business Bureau, and EnergySage.

Step 4: Apply for Rebates and Tax Credits

Timing matters. Many rebates have limited funding and operate on a first-come, first-served basis. Apply for the Denver Solar Rebate before signing a contract with your installer. You’ll need:

• Proof of homeownership (deed or property tax statement)
• System design specifications
• Installer’s license and NABCEP certification
• Estimated annual energy production

Submit your application through the Denver Energy Challenge website. Once approved, you’ll receive a rebate authorization letter. Keep this document—it’s required for the installer to complete the final paperwork.

For the federal ITC, keep all receipts and documentation from your installer, including the IRS Form 5695 (Residential Energy Credits). File this with your annual tax return. For the state credit, use Colorado’s Form DR 0621. Your tax preparer can help, but many online tax software programs now include solar credit wizards.

Net metering requires a separate application with Xcel Energy. Your installer will typically handle this, but confirm they’ve submitted the Interconnection Agreement and Metering Agreement. Without this, you won’t receive credits for excess energy.

Step 5: Permitting and Inspection

Denver requires a building permit for solar installations. Your installer should handle this, but it’s good to understand the process. The permit application includes structural, electrical, and zoning reviews. Most residential solar permits are approved within 10–15 business days.

After installation, an inspection by the City and County of Denver’s Department of Permits and Inspections is mandatory. The inspector checks for code compliance, proper grounding, labeling, and safe wiring. If the system passes, you’ll receive a Certificate of Occupancy for the solar system.

Don’t proceed with final payment until the inspection is complete and your net metering is active. Some unscrupulous installers may ask for full payment upfront—avoid this. Payment should be tied to milestones: deposit upon signing, progress payment after permitting, final payment after inspection and interconnection.

Step 6: Monitor and Maintain Your System

Modern solar systems require minimal maintenance. Most panels come with 25-year performance warranties and are designed to withstand Denver’s hailstorms and snowfall. Rain naturally cleans the panels, but you may occasionally need to brush off heavy dust or debris after a wildfire season.

Install a monitoring app—most inverters come with Wi-Fi connectivity and real-time production tracking. Apps like Enphase Enlighten or SolarEdge Monitoring let you see daily output, detect underperforming panels, and receive alerts for system issues.

Annual visual inspections are recommended. Look for loose wiring, corrosion on mounts, or shading from new tree growth. If you notice a sudden drop in production, contact your installer immediately. Most warranties cover labor and parts for 10–25 years.

Best Practices

1. Don’t Chase the Lowest Price

The cheapest quote isn’t always the best. Low-cost installers may use inferior panels, skip permits, or offer weak warranties. A $15,000 system with Tier-1 panels, a 25-year warranty, and a reputable installer may save you more in the long run than a $10,000 system with a 10-year warranty and unknown components.

2. Avoid Lease and PPA Models Unless You Understand the Risks

Some companies offer solar leases or Power Purchase Agreements (PPAs), where you pay little or nothing upfront but agree to buy the electricity generated at a fixed rate. While this eliminates upfront cost, you don’t own the system, so you can’t claim tax credits or rebates. These agreements can complicate home sales and may include escalator clauses that raise your rates over time. Own your system whenever possible.

3. Plan for Battery Storage Early

While batteries aren’t required, they’re becoming increasingly valuable in Denver. With Xcel Energy’s Time-of-Use (TOU) rates now in effect for many customers, storing solar energy during low-rate periods and using it during peak hours can save you hundreds annually. If you’re considering a battery, factor it into your initial quote. Retrofitting later can cost $2,000–$5,000 more.

4. Document Everything

Keep digital and physical copies of every document: contracts, rebate applications, inspection reports, warranty cards, and correspondence with your installer and utility. This protects you if disputes arise and is essential for claiming tax credits.

5. Time Your Installation Strategically

Apply for the Denver rebate in January or February. Funding typically runs out by summer. Schedule installation for late spring or early summer to maximize production during peak sunlight months. Avoid winter installations unless you’re in a hurry—snow and cold can delay inspections and reduce initial energy output.

6. Consider Future Energy Needs

If you plan to buy an electric vehicle, install a heat pump, or expand your home, design your solar system to accommodate future demand. A 6 kW system may cover today’s usage, but a 10 kW system could eliminate your entire electric bill for the next decade. The incremental cost is often minimal, but the long-term savings are substantial.

Tools and Resources

1. Denver Energy Challenge Solar Rebate Portal

https://www.denverenergychallenge.org/solar-rebate

Official source for rebate applications, eligibility criteria, and funding status. Check weekly for updates.

2. EnergySage Solar Marketplace

https://www.energysage.com

Compare up to seven pre-vetted installers in Denver. Get side-by-side quotes with detailed cost breakdowns and savings projections. Free to use.

3. NREL PVWatts Calculator

https://pvwatts.nrel.gov

Free tool to estimate your system’s annual energy production based on location, tilt, and system size. Use your actual electricity bill to refine estimates.

4. DSIRE Database (Database of State Incentives for Renewables & Efficiency)

https://www.dsireusa.org

Comprehensive, up-to-date database of all federal, state, and local incentives for solar and renewable energy. Filter by Denver and Colorado.

5. Xcel Energy Net Metering Guide

https://www.xcelenergy.com/solar

Official guide to interconnection, metering, and billing for solar customers. Download the latest application forms here.

6. Colorado Solar + Storage Association

https://www.coloradosolar.org

Nonprofit organization that certifies installers, hosts educational events, and publishes annual solar market reports. Great for finding trusted local installers.

7. IRS Form 5695 and Colorado DR 0621

https://www.irs.gov/pub/irs-pdf/f5695.pdf

https://tax.colorado.gov/forms/dr-0621

Download these forms to claim your federal and state tax credits. Use tax software like TurboTax or H&R Block, which now guide you through solar credit filing.

8. Google Project Sunroof

https://sunroof.withgoogle.com

Quick, visual estimate of your roof’s solar potential, estimated savings, and payback period. No personal data required to use.

Real Examples

Example 1: The Johnson Family – 6 kW System

The Johnsons live in Lakewood, just outside Denver. Their average monthly electric bill was $125. They installed a 6 kW solar system using Tier-1 SunPower panels and a Enphase IQ8 microinverter system. Total installed cost: $18,000.

They received:

• $5,400 federal tax credit (30% of $18,000)
• $1,000 state tax credit (capped)
• $3,000 Denver Solar Rebate ($0.50/watt × 6,000 watts)
• $522 sales tax exemption (2.9% of $18,000)

Total savings: $9,922

Net cost: $8,078

Annual energy production: 9,200 kWh (covers 100% of usage)

Monthly savings: $125 on electricity + $10 in net metering credits = $135/month

Payback period: 5 years

After 25 years, they’ll have saved over $42,000 in electricity costs. Their home value increased by an estimated $15,000 due to solar.

Example 2: Maria Rodriguez – 8 kW System with Battery

Maria, a single mother in Northeast Denver, installed an 8 kW system with a 10 kWh Tesla Powerwall. Her monthly bill was $140. Total system cost: $28,000.

She received:

• $8,400 federal tax credit
• $1,000 state tax credit
• $4,000 Denver rebate ($0.50/watt × 8,000 watts)
• $812 sales tax exemption

Total savings: $14,212

Net cost: $13,788

Annual production: 12,500 kWh (covers 100% of usage + charges EV)

With the battery, she avoids peak rates (7–9 PM) and saves an additional $25/month on TOU charges.

Payback period: 5.8 years

After 10 years, her system has paid for itself and is now generating pure savings. She reports zero power outages during winter storms thanks to her battery backup.

Example 3: The Thompsons – 4 kW System with Tax Credit Carryforward

The Thompsons, retired, had a modest 4 kW system installed. Their federal tax liability was low, so they couldn’t use the full $3,600 credit in year one. They carried forward $2,000 to year two and $1,600 to year three.

They still received the full $1,000 state credit and $2,000 Denver rebate. Net cost: $6,400 after incentives.

They now save $85/month on bills and have no maintenance costs. Their system pays for itself in 6.3 years and continues generating free electricity for the next 18+ years.

FAQs

Can I install solar panels if I rent my home?

No. All state and federal incentives require you to be the homeowner and pay the property taxes. Renters cannot claim rebates or tax credits. However, you can advocate for your landlord to install solar and benefit indirectly through lower rent or energy costs.

Do solar panels increase my property taxes in Denver?

No. Colorado law provides a full property tax exemption for solar energy systems. Your home’s assessed value increases with solar, but your tax bill does not.

How long does the entire process take?

From initial consultation to system activation, the process typically takes 60–90 days. Permitting and inspection take 2–4 weeks. Rebate processing adds another 4–8 weeks. Plan accordingly.

Can I install solar panels on a condo or townhome?

Yes, but you’ll need approval from your homeowners’ association (HOA). Colorado law (HB 17-1229) prohibits HOAs from unreasonably restricting solar installations. If your HOA denies your request without valid aesthetic or structural reasons, you can appeal under state law.

What happens if I move?

Solar panels increase home value and appeal to buyers. In Denver, homes with solar sell 20% faster and for 3–5% more than comparable non-solar homes. The system transfers to the new owner, who can continue receiving net metering credits and benefit from the remaining warranty.

Do solar panels work in Denver’s winter?

Yes. Solar panels generate electricity from sunlight, not heat. Denver’s winter days are often clear and sunny. Snow typically slides off angled panels quickly. Production is lower in December and January, but net metering credits from summer offset this.

Are there income limits for solar rebates or tax credits?

No. The federal ITC and Denver rebate have no income caps. The state tax credit is available regardless of income. However, to claim the tax credit, you must have sufficient tax liability. If you have no tax liability, you cannot use the credit—but you can carry it forward.

Can I combine solar with other energy efficiency upgrades?

Absolutely. Many homeowners pair solar with LED lighting, heat pumps, smart thermostats, and attic insulation. Some utility programs offer additional rebates for bundled upgrades. Check with Xcel Energy’s Home Performance Program for possible discounts.

What if my system underperforms?

Reputable installers guarantee production levels in writing. If your system produces less than promised, the installer must make adjustments or compensate you. Always include a production guarantee in your contract.

Is financing available for solar in Denver?

Yes. Many installers offer zero-down loans with terms of 10–20 years at low interest rates (3–7%). You still qualify for all rebates and tax credits even with financing. Avoid high-interest “solar loans” from non-specialized lenders.

Conclusion

Getting solar panels in Denver is one of the smartest financial and environmental decisions a homeowner can make. With abundant sunshine, generous rebates, and strong state policies, the path to solar ownership is clearer and more affordable than ever. By following the steps outlined in this guide—assessing your home, understanding incentives, choosing a qualified installer, applying for rebates, and maintaining your system—you can reduce your electricity bill to nearly zero, increase your home’s value, and contribute to a cleaner energy future.

The financial benefits are undeniable. The average Denver homeowner saves over $1,500 per year on electricity and recovers their investment in under six years. After that, every kilowatt-hour generated is pure savings. Add in the 30% federal tax credit, the $1,000 state credit, the Denver rebate, and the property tax exemption, and the numbers become even more compelling.

Don’t wait for the next incentive to disappear. Funding for local rebates is limited. Tax credits are scheduled to decrease after 2032. The time to act is now. Use the tools and resources provided, compare installers, apply early, and take control of your energy future. Solar isn’t just an upgrade—it’s an investment in your home, your wallet, and your community.