Elite Has All the Info You Need About the Cost of Solar
Solar panels make a great green upgrade that, in the long run, can pay for itself. With utility costs rising and an increasing awareness of the importance of reducing carbon emissions, many Colorado homeowners are considering switching to solar energy for their homes. But how much do solar panels cost upfront in Colorado? The total cost can vary significantly, which plays a major role when planning a solar installation.
At Elite Roofing & Solar, we’re focusing on helping Colorado homeowners get the ideal solar solution for their home—one that provides enough power, is expertly installed, and can save money over the long term. Part of our planning process in partnership with SunPower includes cost calculations, and several factors impact the cost of solar panels in Colorado. Let’s take a closer look!
What Is the Average Cost for a Solar System in Colorado?
The average cost of a new solar system covers a wide range, with most systems falling somewhere between $15,000–$30,000 to purchase and install, not including discounts, rebates, or tax credits. That range is impacted greatly by the energy output of the system—for example, a 5 kW system ranges from around $15,000 to $20,000, according to EnergySage, while a 9 kW array averages around $31,000.
Regardless of the type of system you install on your home, you’re looking at a significant upfront cost. However, solar energy is heavily incentivized, which can help bring that upfront cost down dramatically.
Solar Rebates and Tax Incentives
The most significant sources of cost savings for installing solar panels is the Federal Tax Credit for solar installation. This tax credit, which formerly allowed taxpayers to deduct 26% of the cost to purchase and install solar panels from their tax bill at the end of the year, has now been raised even further to 30%. For a solar array costing $20,000, this means up to $6,000 of that cost could be deducted from your taxes owed! Visit energy.gov for complete information about this tax program.
Is There a Colorado Tax Credit for Solar?
While there is no direct Colorado tax credit for the cost of solar panels, there are many additional incentives on top of the federal credit. For example, Colorado offers a property tax exemption for the added value of solar panels. Additionally, some municipalities and counties offer their own individual rebates for going solar, while certain electricity companies do as well. These savings bring down the cost of solar panels significantly for Colorado homeowners!
Factors Contributing to Overall Cost
A number of factors go into the overall cost of a new system of residential solar panels. For upfront cost, the power output of the system will be the largest contributor, as each additional kW of output will significantly increase the cost. The power output needed for a home will depend on the size of the household as well as high-usage appliances such as hot tubs, pond pumps, and electric cars. The type of panels used for your system (mono- or polycrystalline vs. thin film), as well as the brand and quality, will make a difference as well.
The most important variable in operating costs over time—the means by which a solar array can pay for itself—is solar access. Solar access refers to the amount of usable sunlight that hits the home, and this affects the potential savings of a solar array. For example, a home with excellent solar access can cut the cost of electricity in half from an average of $0.14 per kWh without solar to $0.07 per kWh with solar.
Elite Roofing Can Help Minimize the Cost of Solar Panels!
At Elite Roofing & Solar, our goal is to help our customers get solar systems that match their energy needs and budget for upfront costs. Our method of minimizing costs is simple: we lend our roofing expertise during the solar installation process to ensure your home is solar ready before a single panel is installed. This cuts repair and maintenance costs that may otherwise be incurred if your roof needs to be replaced before your solar array reaches the end of its lifespan.
If you’re looking to make 2023 the year you go solar, contact us today for a solar consultation!