DenverSolar Incentives 2026: Rebates, Tax Credits & Net Metering
Denver homeowners stack the 30% federal tax credit and Xcel Energy net metering. With 5.4 peak sun hours a day and bills averaging $125/month, the typical Denver system pays back in about 8.6 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.
Xcel Energy Net Metering in Denver
Xcel Energy credits excess solar generation from Denver homes under Colorado's net metering rules, at roughly ~100% of retail of the retail rate. 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, a typical 8 kW system in Denver runs about $22,800 before incentives. After the 30% federal credit, the net cost drops to roughly $15,960 — the real out-of-pocket number for most Denver homeowners.
Get matched with vetted solar installers in Denver
The incentives on this page tell you what solar is worth. The next step is real quotes. Compare pre-screened local installers through EnergySage — free, no phone spam, and you stay anonymous until you choose to connect.
Compare Free Quotes →SolarIQ may earn a commission when you request quotes through our partners, at no cost to you. This never affects our incentive data or recommendations.
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.