Solar by State / Colorado
Data last verified: August 2026Is Solar Worth It in Colorado in 2026?
The honest answer depends on four numbers that are unique to Colorado: your electricity rate, your solar production, your net metering policy, and your state incentives. Here are the real figures, with sources and dates.
Colorado Solar Snapshot (2026)
| Residential electricity rate | 16.5¢/kWh (EIA, 2026 YTD May) |
| Solar production | ~1500 kWh per kW installed per year (NREL PVWatts v8) |
| Net metering | Full retail 1:1 |
| State tax credit | None in 2026 |
| Rebates / performance | Xcel rebates |
| SREC market | No active SREC market |
| Property tax exemption | Yes |
| Sales tax exemption | Yes |
Estimate Your Own Payback in Colorado
The table above is a 6 kW benchmark. Your home is different — use the Solar ROI Calculator with Colorado pre-loaded to get your exact payback, or the 30-second worth-it quiz for a go/no-go verdict.
Colorado FAQ
Does Colorado have a solar tax credit in 2026?
Colorado does not offer a state income tax credit for residential solar in 2026. The federal residential credit (Section 25D) expired Dec 31, 2025 and does not apply to 2026 installations.
What is net metering like in Colorado?
Colorado uses full retail net metering. This means every exported kWh is credited at your retail rate — the most favorable setup for solar.
Is solar worth it in Colorado after the federal credit ended?
At a typical 2.75/W installed cost and 16.5¢/kWh electricity, a 6 kW system in Colorado has an estimated payback of about 10.5 years (rank #15 of 51 states). That is in the middle of the pack — workable for long-term owners.
Compare Colorado with Another State
See how Colorado stacks up against New Hampshire — or use the state comparison tool for a side-by-side of any two or three states.
Popular guides
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What changed when the federal 25D credit expired.
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Read →Net Metering vs Net Billing
Why your export credit matters as much as your rate.
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