Colorado Springs, CO Solar Panels: 2026 Costs, Incentives & Savings
Solar Power in Colorado Springs
Colorado Springs is a natural fit for home solar. If you’ve been curious about how solar panels work here and whether they’re a good fit for your home, you’re in the right place.
Electricity prices in Colorado have increased 22% from 2020 to 2024, leaving many residents looking for a smarter way to power their homes. Colorado also ranks 9th in the nation for residential solar installations. Our guide to home solar panels breaks it all down in simple terms.
COLORADO by the Numbers
9th Most residential solar in the United States
161 Households have installed solar panels
5.7 Avg peak sun hours per day
~$59k Colorado Springs average savings over 25 years
How Much Do Solar Panels Cost in Colorado Springs, CO?
Curious about solar costs in Colorado Springs? This calculator uses real data from our actual installations across the area—from Briargate and Broadmoor to Fountain, Monument, and Falcon. See a local, firsthand estimate for your home, no guesswork involved. Explore your numbers below and learn what solar could mean for you.
Lease Cash Purchase
- Small Home Up to 2,000 sq ft
- Medium Home 2,000-3,000 sq ft
- Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Colorado.
Recommended System
6.56 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$77/mo
As low as
$77/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
System Cost $19,534
Price per Watt $2.98
Final Cost $19,534
Savings Your total financial benefit
Monthly Savings Average utility bill reduction
$134
Payback Period Break-even point
10.4 years
25-Year Savings $58,683
Key Takeaways
- Colorado Springs gets 240+ sunny days a year and averages 5.7 peak sun hours daily, making it a strong fit for home solar.
- Electricity prices in Colorado rose about 15% from 2021 to 2024, so producing your own solar power brings more predictable, stable long-term costs.
- State and local incentives still help lower your cost, including a Colorado sales tax exemption, net metering, and a Colorado Springs Utilities rebate averaging $750.
Colorado Springs Electricity Prices
Curious what you really pay to power your Colorado Springs home? Understanding your electricity costs is the first step toward smarter energy choices.
Electricity prices in Colorado have climbed steadily, rising from 13.1 cents per kWh in 2021 to 15.1 cents per kWh in 2024. That’s roughly a 15% increase in just three years for local households.
Solar offers Colorado Springs homeowners a way to generate their own power instead of relying solely on the grid. With the region’s abundant sunshine, rooftop panels can help offset rising utility bills over time.
Because electricity costs tend to rise year after year, producing your own solar energy can bring more predictable, stable costs. Over the long term, that’s peace of mind for many Colorado Springs families.
Price of Energy: Colorado vs National Average
0¢
10¢
20¢
30¢
13.7¢
13.1¢
15.0¢
14.2¢
16.0¢
14.3¢
16.5¢
15.1¢
2021
2022
2023
2024
US Average
Colorado
Colorado Springs Area Utility Providers
In Colorado Springs, most homes get their power from Colorado Springs Utilities. In 2023, the latest data available, its residential rate was about 13.8¢ per kWh—below both the state and national averages.
That 13.8¢ rate sits under Colorado’s 2023 average of 14.30¢ and well below the national average of 16.0¢. As a locally owned utility, Colorado Springs Utilities can often keep costs lower than for-profit providers.
Even with lower-than-average rates, electricity costs tend to rise over time. Solar lets you generate some of your own power, giving you more predictability and helping offset the electricity you’d otherwise buy each month.
Colorado Springs Utilities Electricity Rates
Colorado Springs Utilities 13.80¢
-14% CO Average 14.30¢
-11% US Average 16.0¢
Colorado Solar Incentives
Several solar incentives in Colorado can help offset the cost of installing panels in Colorado Springs, from utility rebates to statewide tax savings.
Colorado Springs Utilities offers a cashback rebate for residential solar, averaging around $750. Statewide, Colorado exempts solar equipment from the 2.9% sales tax and requires utilities to credit exported electricity through net metering.
While the federal 30% tax credit is no longer available, state and local incentives remain. Leasing through LightReach also simplifies incentives, since Palmetto manages the commercial credit and passes savings along.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Colorado Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Colorado exempts solar energy equipment from the state’s 2.9% sales and use tax, reducing the upfront cost of a solar installation automatically at the point of purchase. | |
| Colorado Net Metering Policy | Net Metering | Colorado law requires investor-owned utilities (Xcel Energy and Black Hills Energy) to credit residential solar customers at the full retail rate for excess electricity exported to the grid. | |
| Colorado Springs Utilities Solar Rebate | Rebate | Colorado Springs Utilities offers residential solar customers a cashback rebate of up to $0.10 per watt installed, averaging approximately $750 for a typical system. | |
| Tesla Powerwall 3 Rebate Program | Rebate | Tesla’s ‘Next Million Powerwall 3 Rebate Program’ offers $500 back per Powerwall 3 unit installed, up to $1,000 per address (two units), with sales finalized by June 30, 2026 and installation completed by December 31, 2026. | |
| Colorado Residential Energy Upgrade (RENU) Loan Program | Rebate | The Colorado RENU Loan Program, administered through the Colorado Clean Energy Fund and local credit unions, provides affordable, no-collateral financing for residential solar and battery storage installations. |
Colorado Springs Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Colorado Springs enjoys over 240 sunny days yearly and high elevation, boosting solar production. Even with occasional snow, the region’s abundant sunshine makes it a great place for solar.
Solar Production in Colorado Springs by Month
System Size: 5 kW, 7 kW, 10 kW
Daylight Hours Energy Production (kWh/day)
What Can Your Solar System Power?
Summer Production (July)
49.8 kWh/day
In July, your 10 kW system could power:
- 3.3 average homes (15 kWh/day per home)
- or Run central AC for 16 hours AND power all other appliances
- or Fully charge 5.0 Tesla Model 3 electric vehicles
Winter Production (December)
32.9 kWh/day
In December, your 10 kW system could power:
- 2.2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 16 hours
- or Fully charge 3.3 Tesla Model 3 electric vehicles
Annual Production
16,292 kWh/year
Over a year, your 10 kW system could:
- Offset 11 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 196 trees.
Frequently Asked Questions
Does Colorado Springs, CO have net metering?
Yes. If you live in Colorado Springs and get power from Colorado Springs Utilities, you have access to 1:1 net metering. This means the extra electricity your solar panels send to the grid earns you credits at the full retail rate.
Do solar panels increase your home value in Colorado Springs, CO?
Yes. When you purchase or own your solar panels, they can raise your home’s value in Colorado Springs. A Zillow study found homes with solar panels sold for about 4.1% more than comparable homes without them.
How much does it cost to go solar in Colorado Springs, CO?
In Colorado Springs, you can go solar with no upfront cost through a LightReach lease, paying a low fixed monthly payment starting around $77/mo for a typical medium-sized home. Palmetto owns and maintains the system.