DenverSolar Incentives 2026: Rebates, Tax Credits & Net Metering
Denver homeowners stack the 30% federal tax credit and Xcel Energy net metering. At 5.4 peak sun hours a day, a home with a $125/month bill (about 893 kWh) needs roughly a 6.9 kW system — 18 panels — and pays back in about 8.3 years.
Solar Incentives Available in Denver
Solar incentives in Denver come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Colorado does not add a state income tax credit, so the federal credit is the main up-front incentive. Third, Xcel Energy sets the local rules for crediting the solar power you export.
Xcel Energy offers full retail net metering in Denver plus periodic Solar*Rewards rebates, stacking on the federal credit.
How Much Solar Denver Homes Produce
Denver gets 5.4 peak sun hours a day, so each 1 kW of panels produces about 1,577 kWh per year here. A 6.9 kW system — the size that fits a typical $125/month Xcel Energy bill — generates roughly 10,880 kWh annually, worth about $1,523 in avoided electricity in year one and more as rates rise.
Xcel Energy Net Metering in Denver
Xcel Energy credits excess solar generation from Denver homes under Colorado's full retail-rate net metering (~100% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Colorado net metering rules →
How Much Do Solar Panels Cost in Denver?
At Colorado's 2026 average of $2.85/watt, the 6.9 kW system most Denver homes need runs about $19,665 before incentives. The 30% federal credit takes off $5,900 — landing the net cost near $13,766, with payback around 8.3 years.
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Frequently Asked Questions
Solar Incentives in Other Colorado Cities
See your exact Denver solar savings
Enter your Xcel Energy bill and we'll apply every Colorado and federal incentive to your real numbers — system size, net cost, payback, and 25-year savings.