If only there was some kind of an infinite power source that was free to use all day,
every day…
Living in Colorado Springs gives homeowners and commercial buildings the
advantage to use one such power source that is clean, green, and is a renewable
way to generate electricity throughout the year. We cannot emphasize enough why
you should invest in solar energy at this point. Solar energy’s installed capacity is
projected to more than double in 2021 in Colorado. The state has the target of
going 100 percent renewable by 2040, as per new reports.
Going solar in 2021—when there are no taxes on the sun yet—will eventually save
you from paying huge electricity bills for the coming 10 to 15 years. This is why
people in Colorado are shifting towards this cost-effective and eco-friendly
technology to produce electricity over their rooftops.
With its low maintenance and extra income generation abilities, Coloradans are
going for more and more solar energy systems, mainly because of the Colorado
Springs Solar Incentives and Rebates by the utility companies and the government.
We will discuss with you in detail these incentives that are encouraging Coloradans
to install solar panel systems. They are certainly making it less risky for people in
Colorado Springs to go off the grid. Let us help you learn about some Colorado Springs solar incentives that will definitely make your solar journey affordable.
Net Metering by Various Utilities in Colorado
Colorado Springs provides an extensive financial incentive in the form of net
metering that helps you get the credits for the extra electricity that your rooftop
solar energy system produces.
Net Energy Metering is one of the perks of going solar in Colorado Springs, as you
can trade in the extra electricity for credits from your utility company in your
monthly energy bills.
For transferring the surplus electricity to the utility, you can earn credits for up to
120 percent of the electricity usage from the regulated utilities in Colorado.
Utilities in cities like Fort Collins calculate the credits according to residential electric
rates. Net metering can help you save significant energy bills and gain complete
energy independence.
Cash Rebates by Colorado Utilities
Many local utilities in Colorado Springs offer incentives in the form of cash rebates.
These cash rebates you get for installing solar energy panels on your rooftop can
vary from one utility company to another.
Cash rebates can range from between $400 to around $3000. Some utility
companies also offer compensation based on a calculation per kilowatt produced by your solar
energy system.
For example, Xcel Energy offers Renewable Energy Credits for $0.005/kWh for
small programs that further depend on the solar energy system size. Xcel Energy
also provides medium and large programs, varying with the customer’s annual load.
The maximum solar rebate offered by Fort Collins Utilities is $1000 on residential
solar energy systems that are eligible.
With cash rebates like this, you can reduce the upfront investment in solar
installation and save an enormous amount. Over the years, we have assisted many
customers in Fort Collins reduce their energy bills by helping them avail themselves
of the rebates. We can help you choose the right program that suits you best.
Tax Exemptions in Colorado Springs
Another reason to go off the grid in Colorado Springs is the tax exemptions in the
Property tax, Sales tax, and Use tax by Colorado State.
You can get 2.9 percent to 8.3 percent of the State sales and use tax exemption on
the purchase cost of your solar modules (excluding the installation labor). It
includes photovoltaic panels, inverters, mounting racks, and equipment such as wires and
batteries.
Having a solar-equipped residential setting increases the value of your property by
thousands of dollars, and the exemptions keep you from paying any extra
State property tax.
The tax exemptions make solar plant installation a great return on investment for
Colorado homeowners. We will advise that you acquire a detailed understanding of
the tax exemptions before investing in solar energy.
Federal Solar Tax Credits
This one is a major Colorado Springs Solar Incentive where you get a 26 percent
federal solar tax credit for solar home energy systems.
For example, if your photovoltaic (PV) solar panel system costs you $20,000, by claiming 26
percent of that cost you can get $5200 deducted from your Federal Taxes.
To avail yourself of this incentive, the PV solar panel system installation has to
take place between January 1, 2006, and December 31, 2022. Also, this tax credit is for only the
PV systems that are either purchased in cash or through solar loans.
These federal solar tax credits may not last forever. The tax credits were about to
fall to 22% in 2021 but got extended for two more years. Now they will drop to 22%
in 2023. So hurry up Coloradans! Take advantage of the federal solar tax credit incentive and go solar before the investment tax credit expires.
Power Purchase Agreements With Utility Companies (PPAs)
In Colorado Springs, Solar Incentives through a third-party agreement are also an
option to pursue if you are a commercial business owner.
You can avoid the risk of installing a solar energy system over your rooftop and
reduce the upfront cost using power purchase agreements.
You can enter a PPA with your utility company that will bear the cost of installation,
maintenance, and operation of the solar plant. All you have to do is provide them
the use of your rooftop, for which you will be compensated.
The utility company provides you the electricity for consumption at a
predetermined rate and sells the surplus to the grid. After the PPA ends, the utility
company hands over the solar energy system to you. This extra incentive of using
solar energy is a blessing to the commercial buildings with limited resources at
their end.
The Bright Future of Solar
The United States is to establish 115 gigawatts of Photovoltaic Solar capacity by
- An unexpected exponential growth took place worldwide in the last decade in
the solar power industry.
With approximately 245 sunny days per year in Colorado Springs, solar energy is
becoming the most affordable way of making electricity.
At Solar For Less, we help by providing you the information you deserve to know before
choosing the best solar panel system so you can take advantage of the right
incentives and rebates. Our Free Energy Audits will empower you to make the right
decision for yourself and brighten your home with solar power.
For Free Energy Audits, contact us here.
References:
https://co.my.xcelenergy.com/s/renewable/solar-rewards