With over 300 days of sun, Colorado is the perfect state to get started in solar.
In fact, the state has invested a total of $4.3 billion in the solar industry. Clearly, there is a bright future for energy efficiency in Colorado.
As prices for Colorado solar energy fall, getting into the market becomes more accessible than ever. Are you wondering how to switch to solar in Colorado and save money in the process?
Read on to find out how.
1. Federal Solar Tax Credit
The federal investment tax credit (ITC), or the federal solar tax credit, provides consumers savings when they install a new solar energy system.
Consumers can take advantage of this tax credit only if they own the system and are not leasing solar from a solar leasing company.
Those who install a new system between now and the end of 2022 will save at least 26% on total costs. In 2023, savings drop to 22%.
2. Colorado Solar Energy Tax Exemptions
Due to the growing affordability of solar, Colorado state does not offer a tax credit for solar. However, you may find further savings offered by local and utility organizations. Be sure to check with them when doing research.
Aside from that, Colorado has two incredible tax exemptions which new solar energy owners can take advantage of a sales tax exemption and a property tax exemption.
Sales and Use Tax Exemptions
The state sales tax rate in Colorado is 2.9%. The local sales tax rate can range from 2.9% to as high as 11.2%.
Luckily, new Colorado solar energy system owners do not have to pay the sales tax on their new energy system. This tax exemption applies to the solar panels and all other system parts such as the inverter and solar mounts.
Property Tax Exemption
You may or may not have heard: installing solar on your house increases the value of your property. Of course, you must own the system first.
Installing solar is one of those home improvement projects that offer savings in return, long after the system has been installed. For one, you do not have to pay additional taxes on your property’s increased value.
Think of this as a freebie from the state government. This makes solar energy in Colorado even more attractive.
3. Net Metering in Colorado
Another win for solar energy in Colorado: net metering.
As of 2005, Colorado solar energy owners can profit from any excess energy (measured in kilowatt-hour or kWh) that their solar energy system produces. Profits in the form of credits may be applied to the next bill at a retail rate. This includes community solar gardens.
This concept of profiting from the energy produced by one’s solar energy system is called net metering. Net metering only applies when consumers own their system.
That is why it is more beneficial to buy solar than to lease solar from a third-party company.
Solar panel companies like Blue Raven have devised financing plans to get you started on the journey of owning your energy system. You can learn more here: blueravensolar.com/colorado/.
Stack The Savings On Your Solar Energy System
It pays to live green by using renewable energy sources.
Although solar can be a big investment upfront, these federal and state initiatives, coupled with the falling prices of solar, should make the switch more affordable.
Get started on your Colorado solar energy journey today and take advantage of these savings before they expire!
Here’s to being kinder to the environment! For more lifestyles posts like this, check out the rest of my blog.
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