*Prices are shown after applying the 30% federal tax credit.
As of Nov 2024, the average cost of solar panels in Colorado is $2.51 per watt making a typical 6000 watt (6 kW) solar system $10,521 after claiming the 30% federal solar tax credit now available.
This is lower than the average price of residential solar power systems across the United States which is currently $3.00 per watt.
The size of a solar panel system also plays a role in how much the installation will cost.
Larger solar installations will typically have a lower cost per watt, because the panels can be purchased at a ‘bulk price’. However, these larger solar systems will still have a higher total cost, because they are made up of more individual panels.
| System size* | Avg cost per watt |
Avg system cost
(After tax credit) show before tax |
|---|---|---|
| 4kW | $2.70 | $7,552 |
| 5kW | $2.61 | $9,121 |
| 6kW | $2.51 | $10,521 |
| 7kW | $2.54 | $12,426 |
| 8kW | $2.54 | $14,230 |
| 9kW | $2.48 | $15,599 |
| 10kW | $2.45 | $17,164 |
Showing data for:
Prices based on a 9.268 system, after 30% federal tax credit
Installation costs for solar will vary with your location and the size of your homes electricity bill. To be meaningful solar cost information needs to be tailored to the individual situation. If you enter your details into the solar calculator below you will get a solar cost and savings estimate and find out how much solar panels will cost for your home based on current offers from your local solar installation companies.
Who are the best solar panel installation companies in Colorado that offer the best deals on quality solar systems?
See local installersUse our solar cost calculator to get an online solar estimate and gather solar system quotes for your home in CO
CalculateThe cost of solar doesn't just include the equipment and installation costs - it’s also made up of permitting costs, inspection costs, and installer profit margins.
These different components are what make the price of solar fluctuate between installations. Some of the factors that affect solar power system installation costs for specific homes include:
Homes that use more electricity will need more solar panels to cover their energy needs.
Although solar panels do get cheaper on a per-watt basis, the overall cost of the system will increase as more panels are added.
But, the higher a home’s energy usage, the more solar panels can save the homeowners on their energy bills.
The price of solar panels can vary depending on the type of solar panels you choose.
There are two main types of solar panels for residential solar installations: monocrystalline and polycrystalline. Monocrystalline solar panels tend to be more efficient and more expensive than other solar panels. Polycrystalline panels have a lower efficiency rating and come at a lower price point.
The type of inverter you buy will also influence the cost of your solar system.
You may see some solar quotes with prices that seem too good to be true.
If you get quoted for a ridiculously cheap price, the installer might be using low-quality equipment or an unsustainable pricing model. You want to use a solar installer that is charging enough so that they can stay in business - as you’ll be relying on them for the next 25 years!
It’s important to make sure that your installer is giving you the best quality at the best price possible. This is why getting multiple solar quotes is so important.
The overall cost of solar can be influenced by the solar incentives available.
Across the U.S., homeowners can apply for the federal solar tax credit. The solar tax credit makes installing solar more cost-effective by providing homeowners with a tax credit equal to 30% of the cost of their installed solar panel system.
Local solar tax incentives and rebates can end up saving homeowners thousands on a solar installation, especially when they’re used with the federal solar tax credit.
See what solar incentives are available in your area by using our solar panel calculator.
The cost of installation of renewable energy systems in Colorado is supported by the federal solar investment tax credit.
The amount of this tax credit is currently 30% of the value of the solar system and it is claimed on your taxes in the year after installation.
Many people mistakenly refer to this tax credit as the Colorado solar tax credit but it is actually a federal tax credit.
Colorado itself does not offer a solar tax credit.
Levelized cost of power from this typical solar system installed on a home in Colorado over 25 years is 3.8 cents/kWh.
Average cost of utility power over 25 years (if you don't get solar) is 18.0 cents/kWh. This shows that solar is a far cheaper way to power your home in Colorado over the long term. The way we calculate the average cost of utility power is by assuming the current Xcel Energy electric rates will grow each year at a compound rate of 3.5%. Actual inflation may be higher or lower than this but either way this analysis shows that solar is a clearly better choice.
The table below shows the data extracted from a real life quote delivered through the SolarReviews marketplace recently for a fairly typical home in Colorado.
As you can see the payback period is relatively short and equates to a much better return on investment than he historical returns that have been available from investing in things like shares or property.
| System information | Value |
|---|---|
| System Size (for 100% usage offset) | 9.27 kW |
| Annual power generation | 14,527 kWh |
| Pay-back time (assuming Cash purchase) | 8.2 Years |
| Internal rate of return (IRR) on investment | 8.5% |
| Gross cost | $21,724 |
| Total Upfront Incentives and Rebates | -$5,648 |
| Net Cost of System after rebated and incentives | $16,076 |
| Total Cost of Utility Power Avoided over 25 years | $53,986 |
Please note that the investment return figures do not include the possible increase in property value
Below are the solar panel system costs for the 20 most frequently-installed residential solar panels.
Many of the solar modules on this list are from trusted manufacturers with great efficiency ratings and warranties, which is likely the reason they are so popular.
| Panel model | Avg cost per watt | Avg 6kW system cost |
|---|---|---|
|
LG Solar LG335N1K-V5 |
$2.53 | $2.93 |
|
LG Solar LG375A1C-V5 |
$2.49 | $3.00 |
|
LG Solar LG375Q1C-V5 |
$2.65 | $3.02 |
|
LG Solar LG365Q1K-V5 |
$2.59 | $2.95 |
|
LG Solar LG360Q1K-V5 |
$2.63 | $2.91 |
|
LG Solar LG355Q1K-V5 |
$2.49 | $2.97 |
|
LG Solar LG360Q1C-V5 |
$2.60 | $3.03 |
|
LG Solar LG370Q1C-V5 |
$2.54 | $3.06 |
|
LG Solar LG335N1C-V5 |
$2.53 | $2.93 |
|
LG Solar LG340N1C-V5 |
$0.00 | $0.00 |
|
SunPower SPR-E20-327-COM |
$2.61 | $3.12 |
|
SunPower SPR-X22-360 |
$2.62 | $3.20 |
|
SunPower SPR-E20-327-D-AC |
$2.79 | $3.13 |
|
SunPower SPR-E20-327 |
$2.77 | $3.11 |
|
Canadian Solar CS6K-300MS |
$2.16 | $2.47 |
|
LONGi Solar LR6-60-HPB-300M |
$1.95 | $2.37 |
|
LONGi Solar LR6-60-HPB-305M |
$1.96 | $2.42 |
|
LONGi Solar LR6-60-HPB-310M |
$1.97 | $2.38 |
|
LONGi Solar LR4-60HPH-380M |
$1.94 | $2.34 |
|
LONGi Solar LR6-72HBD-390M |
$2.00 | $2.44 |
The most important difference between buying solar panels and any other purchase is that solar panels last 25-30 years. This is a long, long time and you will need customer service over all that time. The reviews below of the two largest corporate solar installation companies indicate larger corporate solar companies are not delivering this support to their customers.
We recommend you find a small or mid-size, local, family-owned solar company. These companies tend to care more about you and your specific job. You don't want to be on hold to a corporation's call center for the next 25 years!