Solar power and Colorado go together like summer and sandals. There’s been a great deal of interest in solar power in Colorado in the last few decades. That’s because it’s one of the sunniest states in the US. But is it worth going solar in Colorado? Give us just a minute or two and we’ll give you the answer to that question.
Colorado Could Be Called the Sunshine State
That state nickname might already be taken, but it certainly does accurately describe Colorado’s weather. Colorado is one of the sunniest states so it’s a great place to commit to solar energy for your home or business. In fact, Colorado averages around 300 sunny days a year. That’s 300 days when your solar panels can be making energy for your home or business. Unlike other parts of the country, this makes solar power a natural fit for Colorado’s climate.
Solar Rebate Rates in Colorado
Several utility companies have rebate or buyback programs in place that they offer across Colorado. The average payback period is 11.5 years. The calculation is done by dividing the cost of the installation by your annual savings (minus rebates and tax credits). You can go on the Global Solar Atlas website and look up the irradiance value for your location. What that provides is information about how to determine how much power your solar panels provide. The irradiance value is measured in kilowatt-hours per m2 per day (or year). This is known as Peak Sun Hours.
Do solar panels ever have to be replaced?
All solar panel companies offer warranties on the panels they manufacture. These normally range from 20 to 30 years. Solar panels are very durable and they can normally go on working and producing clean energy for up to 50 years.
But with any device, the power they generate can decrease slightly as the solar cells age. But that number is only around 0.5-0.8% per year. It’s normally spelled out in the warranty that they’ll generate 90% after 10 years and around 80% after 20 years. But the homeowner is also covered for the associated equipment for the system. If an inverter stops working after a period of time it’ll be replaced.
Is there a federal tax credit for solar power?
The US federal government provides a solar tax credit so homeowners can claim a percentage of the capital cost of the solar system. You can enter what the system price was into next year’s IRS tax form. The tax liability will be offset by the government. For example, if your tax rebate is $1,500 and you owe $5,000, you’ll only pay $3,500.
The current federal tax rebate for solar systems in 2022 is 26%. If your solar system was $15,000, then your rebate would be calculated as: $15,000 x 26% = $3,900. Congress extended the 26% until the end of 2022. Then it could drop to 22% in 2023. However, the good news is that President Biden announced a long-term commitment to renewable energy, so it might be extended again.
Although state-wide incentives to go solar no longer exist, some individual utility companies and counties have their own programs in place. So it’s best to check with them. Or better yet, reach out to our team. We’re experts in helping Colorado residents maximize their savings on solar.
Will a solar system increase the value of a property?
There are several factors that can influence the value of a property. But installing a solar system on a home or business can lower monthly energy bills and increase the value of the property by up to 4.1%. This translates to an additional $9,000 for an average valued home in the US. Also, it’s good to know that any additional property value won’t contribute to higher property taxes.
What happens to the solar system if the power goes out?
A solar system that’s connected to the local power grid will automatically disconnect from the grid when there’s an outage. This is a safety feature put in place to protect workers that could be repairing the line. This is called anti-islanding. Islanding is a solar system that continues to operate even if the grid goes off which can create a hazardous situation. You have the option when installing a solar system to include a backup battery. This way in an outage you’ll still have power if the lights go out!
How much does a solar system cost in Colorado?
The cost of the average professional installation of a home solar system in Colorado is $2.66 – $3.60 per watt. In general terms, the installation cost may range from $13,000-$18,000 (that’s without any incentives or rebates). Applying the federal 26% rebate will make that number drop even further!
Here at Steel City Solar, we’re experts at helping residents find ways to finance their solar purchase, so they can begin experiencing all the free energy of the sun’s rays. One investment in solar panels today can mean decades of savings down the road.
Find out more about Solar Energy for Your Home and Business in Southern Colorado
Getting a solar array installed on your property is worth it in Colorado. Many power companies have rebates for the purchase of a solar system. The combination of the Federal Solar Tax Rebate, the property improvement, and any Colorado tax exemptions make it well worth it!
If you’ve been thinking about adding solar power to your home or business to save on your monthly utility bills and take advantage of Colorado’s sunny days, now is the time while the tax rebate is still at 26%. By going solar you’ll be reducing your carbon footprint and generating clean energy for your family.
If you’d like to learn more, give the solar professionals at Steel City Solar a call at 719-569-5166. We’re the highest-rated solar company in Southern Colorado, only use the best products available, and provide the best service. Reach out today, or visit our website for a free estimate!
