Colorado homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. The average residential electricity rate here is about 16.2 cents per kWh (EIA, as of May 2026), and a typical 6 kW rooftop system in Denver produces about 9,570 kWh a year (NREL PVWatts v8). Colorado ranks 15th nationally for installed solar capacity (SEIA, 2026). There is no state solar income-tax credit for homeowners, but Xcel and Black Hills still credit rooftop exports at the retail rate through net metering, which puts simple payback near 12 years. Below you will find installed cost, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.
Updated for 2026.
Key statistics: Colorado solar at a glance (2026)
Key numbers (Colorado, 2026)
- Average residential rate: 16.2 cents per kWh
- Typical system size: 6 kW
- Typical annual production: 9,570 kWh per year (Denver)
- Typical installed cost: $2.90 to $3.40 per watt
- Estimated system cost: $17,400 to $20,400
- Simple payback: about 12 years
- Installed capacity rank: 15th nationally
According to MySolarFY’s analysis (August 2026), a typical 6 kW system in Colorado produces about 9,570 kWh a year in Denver, offsetting power that costs about 16.2 cents per kWh. These are our own compiled figures for Colorado; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our Colorado solar guide and our Colorado solar incentives guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 16.2 cents per kWh | EIA, as of May 2026 |
| Typical system size | 6 kW | MySolarFY, typical residential array |
| Typical annual production | 9,570 kWh per year (Denver) | NREL PVWatts v8, as of August 2026 |
| Typical installed cost | $2.90 to $3.40 per watt | MySolarFY cost range, as of August 2026 |
| Estimated system cost | $17,400 to $20,400 | MySolarFY, 6 kW, as of August 2026 |
| Simple payback | about 12 years | MySolarFY analysis, as of August 2026 |
| Installed capacity rank | 15th nationally | SEIA, 2026 |
Every figure is dated and attributed. Rate is the EIA residential average for Colorado; production is a modeled NREL PVWatts v8 run for a 6 kW array; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.
How much does solar cost in Colorado, and what is the payback?
A 6 kW system runs about $17,400 to $20,400 installed in Colorado, with simple payback near 12 years in the Denver metro and roughly 12 to 13.5 years statewide, based on local production and the 16.2 cent retail rate. Production and payback vary within the state because the solar resource and the local rate shift by location. The table below models a 6 kW system for representative Colorado cities using NREL PVWatts v8.
| City | System size | Annual production | Est. system cost | Est. annual bill savings | Simple payback |
|---|---|---|---|---|---|
| Denver | 6 kW | 9,570 kWh per year | $18,900 | about $1,550 | about 12.2 years |
| Colorado Springs | 6 kW | 9,759 kWh per year | $18,900 | about $1,580 | about 12.0 years |
| Aurora | 6 kW | 9,663 kWh per year | $18,900 | about $1,560 | about 12.1 years |
| Fort Collins | 6 kW | 8,857 kWh per year | $18,900 | about $1,430 | about 13.2 years |
| Lakewood | 6 kW | 9,085 kWh per year | $18,900 | about $1,470 | about 12.9 years |
| Boulder | 6 kW | 8,759 kWh per year | $18,900 | about $1,415 | about 13.4 years |
Production is a modeled NREL PVWatts v8 run per city ZIP. Bill savings value each offset kWh at Colorado’s 16.2 cent statewide residential average held flat; your actual rate depends on your utility (Colorado Springs Utilities, a municipal provider, and Black Hills in the south differ from the Xcel Front Range rate), and savings assume annual household use meets or exceeds production. Payback is the system cost divided by that savings. Cost and payback are MySolarFY estimates that ignore financing. A written quote for your roof beats any table.
Does Colorado have net metering, and how do the utilities credit exports?
Yes. Colorado requires investor-owned utilities to offer retail-rate net metering, so Xcel Energy and Black Hills Energy both credit the power your roof sends back to the grid. Your utility sets the delivery rate and administers net metering. Xcel Energy (Public Service Company of Colorado) is the largest utility and serves most of the Front Range; Black Hills Energy serves southern Colorado around Pueblo; and Colorado Springs Utilities is a municipal provider outside state-PUC regulation. For the mechanics, see how net metering credits your solar exports.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| Xcel Energy (Public Service Co. of Colorado) | Largest Colorado utility, serving most of the Front Range; residential rate near the state average of about 16 cents per kWh | Retail-rate net metering: monthly bill credits roll forward, and any year-end net surplus is trued up at the incremental cost (Colorado PUC, per C.R.S. 40-2-124). |
| Black Hills Energy | Serves southern Colorado (the Pueblo area); regulated residential rate | Monthly retail-rate credit with an annual avoided-cost true-up for net excess generation (Black Hills Energy, as of August 2026). |
| Colorado Springs Utilities | Municipal utility serving Colorado Springs; not state-PUC regulated, and outside the EIA investor-owned average | Offers residential net metering on its own terms; confirm the current tariff directly with Colorado Springs Utilities. |
Net metering rules are set by state law and the Colorado Public Utilities Commission, not the installer. Confirm your utility’s current tariff before you size a system.
What solar incentives does Colorado offer in 2026?
Colorado’s incentive stack is built on retail-rate net metering, utility rebates, and tax exemptions rather than a state income-tax credit, because Colorado has no general state solar income-tax credit for homeowners. For the full breakdown see our Colorado solar incentives guide and our Colorado solar overview. These incentives go to the system owner, so on a lease or PPA the company that owns the panels keeps them while the net-metering credit follows your account.
Net metering (Xcel and Black Hills)
Investor-owned utilities credit rooftop exports at the retail rate. Xcel rolls monthly credits forward and trues up year-end surplus at the incremental cost; Black Hills gives a monthly retail-rate credit with an annual avoided-cost true-up (active) (Colorado PUC / Black Hills Energy, as of August 2026)
Xcel Solar*Rewards
An up-front rebate of about $1 per watt (up to 10 kW AC), targeted as of 2026 at income-qualified and disproportionately impacted community customers; standard residential customers may see different terms (active, income-qualified focus) (Xcel Energy, as of August 2026)
Residential Energy Storage Credit
A 10% Colorado income-tax credit for a qualifying home battery, available through December 31, 2026 on Form DR 1307. This credit applies to the storage system only, not to the solar panels themselves (active through 2026) (Colorado Department of Revenue, as of August 2026)
Sales, use, and property tax exemptions
Colorado exempts residential solar equipment from state sales and use tax and excludes the added system value from residential property tax, so going solar does not raise your property tax bill (active) (Colorado Department of Revenue / C.R.S. 39-26-724 and 39-3-118.5, as of August 2026)
No state solar income-tax credit
Colorado has no general state income-tax credit for residential solar panels. The only solar-related state credit is the 10% storage credit above, which covers batteries only (not available for panels) (Colorado Department of Revenue, as of August 2026)
Federal Residential Clean Energy Credit (Section 25D)
Ended December 31, 2025 and is not available to homeowners who buy solar in 2026, so no federal credit reduces the cost for cash or loan buyers (ended 12/31/2025) (IRS, as of August 2026)
The federal homeowner credit has ended, but Colorado’s net metering has not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a Colorado homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). Colorado’s retail-rate net metering, the Xcel Solar*Rewards rebate, the 10% storage credit, and the sales and property tax exemptions were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA Form residential retail price for Colorado (EIA retail sales, as of May 2026).
- Production: modeled with NREL PVWatts v8 for a 6 kW south-facing array at each city ZIP (NREL PVWatts v8 documentation, as of August 2026).
- Capacity rank: Colorado’s national ranking for installed solar capacity (SEIA, Colorado Solar, as of 2026).
- Cost and payback: MySolarFY estimates built from installed cost per watt (informed by the DataForSEO cost SERP for Colorado) and the EIA rate, holding today’s rate flat and ignoring financing.
- Incentives and net metering: the Colorado Public Utilities Commission, Xcel Energy, Black Hills Energy, the Colorado Department of Revenue, and the DSIRE incentive database (DSIRE, as of August 2026).
- Assumptions: a 6 kW system, standard losses, and a south-facing array. Your roof, usage, and financing change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, Colorado Solar Data & Statistics 2026, accessed August 22, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), SEIA (installed capacity rank), the Colorado PUC and Department of Revenue and DSIRE (incentives and net metering), and DataForSEO (cost SERP). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/colorado-solar-data-statistics-2026/.
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How to choose a solar installer in Colorado
Rather than chasing a “best installer” list, screen any company against objective criteria: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
What is the average solar cost in Colorado in 2026? A typical residential system in Colorado runs about $2.90 to $3.40 per watt installed before any incentives (MySolarFY cost range, as of August 2026). A 6 kW system is a common size for a single-family home, which works out to roughly $17,400 to $20,400. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
How much electricity does a solar system produce in Colorado? A modeled 6 kW array produces about 9,570 kWh a year in Denver (NREL PVWatts v8, as of August 2026), and roughly 8,760 to 9,760 kWh across Boulder, Fort Collins, Aurora, and Colorado Springs. Colorado’s strong solar resource, about 5.7 peak sun hours a day in Denver, drives both your net-metering credits and your payback, so estimate your specific roof rather than a generic number.
Does Colorado have net metering in 2026? Yes. Colorado requires investor-owned utilities to offer retail-rate net metering. Xcel Energy rolls monthly bill credits forward and trues up year-end surplus at the incremental cost (C.R.S. 40-2-124), and Black Hills Energy gives a monthly retail-rate credit with an annual avoided-cost true-up (Colorado PUC, as of August 2026).
Does Colorado have a state solar tax credit? No. Colorado has no general state income-tax credit for residential solar panels. The only solar-related state credit is a 10% credit for a qualifying home battery, available through December 31, 2026 on Form DR 1307, and it covers storage only, not the panels. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so it does not apply to a 2026 purchase either (Colorado Department of Revenue and IRS, as of August 2026).
Reviewed by the SolarFY Editorial Team. Figures were verified against the linked EIA, NREL, SEIA, DSIRE, Colorado PUC, and Colorado Department of Revenue sources as of August 2026, following our data and methodology standards; rates, incentive values, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. Solar panels are not free and any monthly payments apply. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation; lease and PPA terms may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
