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Home solar in Colorado

Colorado keeps full retail net metering by state law, and a 2026 law (HB26-1007) makes plug-in solar and meter-collar adapters easier, so home solar remains well supported.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

17.2¢average home price per kWh (EIA, August 2026)
Strong case for solarRetail-rate credits that roll over indefinitely, no state sales tax and no property tax on home solar, and one of the strongest HOA laws. Power prices are moderate (about 17 cents/kWh).

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Net metering Net metering available

Under C.R.S. 40-2-124, Xcel Energy and Black Hills must let your solar offset your use, and extra power becomes a credit carried forward month to month with no end date. You can instead ask for a yearly payout (at a lower avoided-cost rate) or donate credits. Large city utilities and co-ops must also offer net metering, with their own year-end rules. Source

  • 2026-12-31: PUC must update interconnection rules to allow meter-collar adapters (HB26-1007)

Solar credits (SRECs) Limited

No open SREC market. Xcel's Solar*Rewards program has paid small incentives in exchange for a system's renewable credits; check Xcel for current terms. Source

Rebates and incentives

We found no statewide solar rebate or tax credit open in Colorado right now. Your utility, city or county may still offer one, so ask your installer.

Taxes

Property tax: Exempt: home-owned rooftop solar that mainly powers the home is exempt from property tax (C.R.S. 39-3-102, 39-1-102(6.8)).
Sales tax: Exempt from state sales tax: parts used to make electricity from renewable sources (C.R.S. 39-26-724). Cities and counties may still charge local sales tax unless they adopted the exemption. Source

Solar laws

  • HOA solar access, C.R.S. 38-30-168 (). HOA bans on solar are void. Look rules can't add more than 10% to cost or cut output more than 10%; an application not answered in 60 days is approved. HOAs may still bar solar on common areas. Source
  • HB26-1007, customer use of distributed energy resources (2026). Lets homes use plug-in (balcony) solar; HOAs and others can't unreasonably ban it. Utilities must allow meter-collar adapters, and can't require a production meter for systems of 10 kW or less. Source

Community solar

Yes: Colorado's community solar garden law lets customers subscribe to a nearby solar garden for bill credits through Xcel and other utilities.

Timeline

  1. SB21-261 net metering updates apply to new contracts
  2. Federal 30% homeowner tax credit (25D) ends
  3. HB26-1007 signed (plug-in solar, meter collars)

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options