State guide · facts checked July 2026
Colorado is quietly one of the better states to buy solar in for 2026: Xcel still nets your exports at full retail, the state's battery credit has one year left, and a brand-new consumer protection law took effect July 1, 2026 that most door-knockers are hoping you have not read.
Here is the honest picture as of July 2026, with sources at the bottom.
The price
Competitive quotes in Colorado average about $2.67 per watt before incentives (EnergySage marketplace data, June 2026), with most landing between $2.70 and $3.00. Colorado runs a bit above sunbelt states because of labor and smaller average systems.
Door-to-door and finance-fee-loaded quotes commonly run $3.50 to $4.50 per watt for the same hardware. Above $3.40, get more quotes before signing anything.
Check your quote against this, freeExports
Unlike California or Arizona, Colorado's biggest utility still nets your solar exports against your usage at the full retail rate. Excess rolls into a "Solar Bank" that carries forward indefinitely, or you can elect an annual cash-out at a much lower wholesale-ish rate (spoiler: keep the bank). Systems can be sized up to 120% of your annual usage.
There is no pending proceeding to cut net metering compensation in Colorado as of July 2026. What IS pending is an Xcel rate case that would raise rates in late 2026, and higher rates make your net metering credits worth more, not less. So the "net metering is ending, buy now" pitch is exactly backwards here.
Black Hills Energy and the co-ops (like CORE) also net at retail with their own size caps and true-up rules, and co-ops set their own programs entirely. Check your specific utility's tariff before trusting any savings model.
Incentives
Ended December 31, 2025 under the July 2025 federal law. A purchased system installed in 2026 gets $0 federal credit. Some installers now market leases as "still get 30% off": the leasing company gets a credit, and you get whatever discount they feel like passing through.
A real state income tax credit worth 10% of battery equipment cost (3 kWh minimum), claimable via form DR 1307 or assignable to the installer for upfront value. It expires at the end of 2026, so this is a legitimate reason to move this year if you want storage. Verify the credit amount in your quote against the actual equipment cost; pitches inflate it.
Colorado exempts solar equipment from state sales tax and exempts residential renewable energy equipment from property tax, so the panels will not raise your property assessment. Note some home-rule cities charge their own sales tax; Boulder refunds its share.
Solar*Rewards pays for your RECs over 20 years (modest for most households, a much bigger upfront amount for income-qualified customers). Battery Connect pays an upfront battery rebate plus a yearly credit for peak-event participation. Both had 2026 budgets open as of May 2026; confirm live status with Xcel.
Does not exist. The only state credit is the 10% battery credit above. If a quote's savings include a "Colorado solar tax credit," the math is wrong or dishonest.
What they gloss over
What you hear
"You still get the 30% federal tax credit."
What's true
Not on a purchase installed in 2026 or later. It ended December 31, 2025. Lease pitches reframing it as "30% off" are describing the finance company's tax position, not yours.
What you hear
"Net metering is ending in Colorado, you need to lock in now."
What's true
There is no proceeding to end retail net metering here as of July 2026. The pending Xcel rate case would raise rates, which makes solar credits MORE valuable. This pitch imports California's policy drama into a state where it did not happen.
What you hear
"I'm with Xcel" (or "we partner with your utility").
What's true
As of July 1, 2026, Colorado law (SB25-299) explicitly bans implying utility affiliation without written consent. It is a deceptive trade practice with real penalties. Ask for the claim in writing and watch what happens.
What you hear
"This price is only good today."
What's true
Under SB25-299, your 3-business-day cancellation window does not even START until the company conducts a recorded welcome call with you. Contracts signed under same-night pressure are exactly what the law was written for. No honest deal expires tonight.
What you hear
"The system pays for a new roof too, it's all covered by the credits."
What's true
Roofs never qualified for solar tax credits, state or federal. This exact claim shows up in documented Colorado complaints that led to the new law.
Your city and utility
Permitting and interconnection are local. We keep a plain-English database of both for Colorado:
Sources
Every claim above was checked against a primary source in July 2026. Policies change; if you spot something stale, trust the source over us and tell us.
Educational guidance for your own research, not financial, tax, or engineering advice. Verify current rates and program status with your utility and a licensed professional before signing anything.