Federal Solar Incentives for Colorado
At EcoMark Solar, we talk with our customers and people who are interested in learning more about Solar Power incentives to help get the most out of any solar panel system.
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Homeowners and business owners who go solar can make use of the Investment Tax Credit (ITC) offered by the federal government. The tax credit is a percentage of your system cost—and there’s no cap on the amount.
The ITC is a one-time, non-refundable credit that you receive when you file your taxes. For the year you had your solar array installed.You can roll over the tax credit to subsequent years if you’re unable to use all of the credit in the first year.The good news: This tax credit was set to end in 2021, but it was extended until 2023.
- 2021 – 26% of system cost
- 2022 – 26% of system cost
- 2023 – 22% of system cost
- 2024 and beyond – no credit for residential systems
In most cases, your solar installer will give you a receipt for the total cost of your system after it’s installed. If you can’t realize the full value of your credit in the first year, you may be able to roll it forward to reduce your tax burden in subsequent years.
Eligibility for the tax credit happens after a system has been “placed in service,” as stated in the tax code.
Batteries are eligible for the tax credit!
Solar owners who install a battery system at the same time as their solar panels can roll the storage costs into their tax credit (given the battery is charged entirely from the solar).
In March 2018, the IRS indicated that folks who already own a solar system can retrofit their solar array with battery storage and take the full tax credit for the cost of their battery installation.
Local Colorado Solar Incentives
Coloradans have many incentive programs for incentive payments, tax deductions, and good loan programs. XCEL has aggressive goals to provide solar and wind energy and their incentive programs reflect their goal.
Colorado Solar Incentives vary by locale. Here are the incentives we recommend at EcoMark Solar:
City and County of Denver – Elevations Energy Loans a program for all homeowners in the City of Denver
100% exemption for renewable energy system – property tax – https://cdola.colorado.gov/renewable-energy