Colorado Solar Rebates and Incentives

As a state touted for having over 300 days of sunshine a year, Colorado is a prime location for setting up a solar-powered energy system for your home.

There are state-wide property- and sales-tax exemptions in addition to many utility rebate programs. Most of these offers can be combined with federal incentives to save on average 40 – 60 percent of the cost of your solar equipment and installation.

Solar Rebate and Incentive Programs

Property Tax Exemption for Residential Renewable Energy Equipment

Program Type	Property tax exemption
Technologies	Photovoltaics (solar panels), Solar Space Heat, Solar Water Heat, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric
Amount	100% percent tax exemption
Required Documentation	Receipt of purchase and installation
Official Web Site	http://www.dola.state.co.us/dpt/index.htm

In the state of Colorado, certain renewable-energy equipment is exempt from property tax. The equipment, such as solar panels, is assessed to have no value for the purpose of determining the taxable value of a residence. This is because “household furnishings” are not taxed. Household furnishings includes additions like wall-to-wall carpeting, free-standing equipment, and as of September, 2008 the Colorado Division of Property Taxation announced that renewable-energy equipment will, too, fall under this heading.

This benefits homeowners in that their renewable energy system will raise the commercial value of their home without actually increasing what they pay in property tax.

In order to be eligible for this exemption, the system must be located on residential property, be owned by the owner of the property, and produce energy which is used on-site by the property owner. The energy produced by the system also must not be used to make a profit of any sort if it is to be considered household furnishing, which is to say that you cannot be reimbursed for excess energy produced.

Recharge Colorado

Program Type	Rebate
Technologies	Photovoltaics (solar energy)
Amount	$1.50 per watt for the first 3kW
Required Documentation	Rebate Application, Affidavit of residency, a BPI or RESNET certified auditor must perform a walkthrough energy audit of the property
Official Web Site	http://rechargecolorado.com/index.php/energy_action_planner/find_rebates_details/?incentive_id=211&zip_code=80219

The Recharge Colorado rebate program is a first-come-first-served program designed to both stimulate the local economy and promote renewable energy technologies.

The rebate is for new photovoltaic (PV) installations using new equipment only—no recycled solar materials, system expansions, or add-ons are eligible. A walk-through audit is required in order to apply for the rebate; however, new construction that obtains ENERGY STAR New Home certification or has a rating of no more than 80 HERs (a Home Energy Rating that indexes how energy efficient a home is: the lower the score, the better) will be exempt from the walk-through.

Homeowners can get paid $1.50 per watt, for the first 3,000 watts generated, which comes to $4,500. However, you can apply for other local rebates as well, which can net a total of $3 per watt (including the Recharge rebate). Unfortunately, the fund that Recharge draws from, money from The American Reinvestment and Recovery Act, is a finite source, so apply as soon as possible. Once the funds run out, the rebate may be discontinued unless other funds are introduced.
Customers must choose one of the approved contractors from the GEO Service Provider Database. Your contractor, not you, has to submit the application on your behalf.

Your contractor has a deadline of six months to complete the installation after applying for Recharge. If the installation is completed by the deadline, your contractor must submit the final paperwork for payment.

Xcel Energy Solar Rewards

Program Type	Utility Rebate Program (Renewable Energy Certificates or RECs) and net metering
Technologies	Solar Hot Water Heating
Amount	Rebate of $2 per watt as well as $0.45 REC (as of May 14, 2010, but dropping)
Required Documentation	Dependent on the method of installation (either you or a contractor)
Official Web Site	http://www.xcelenergy.com/Colorado/Residential/RenewableEnergy/Solar_Rewards/Pages/home.aspx

Xcel Energy’s Solar Rewards reimburses its customers for approximately half the cost of installation of a solar system. Reimbursement is in the form of $2 rebates for every watt installed and Renewable Energy Credits (RECs). Upon installation of the system, Xcel will replace your old meter with a net meter which moves forward and backward depending on if more energy is produced than consumed. If your system produces more energy than the household consumes, you can choose to be compensated for surplus energy produced by either Continuous Rollover Credits or by Year-end Payout.

With Continuous Rollover Credits, the excess energy produced will go onto the grid to be used by other Xcel customers and you will be credited in your “Solar Bank.”When you are forced to pull energy from the grid (at night, for example) instead of being charged, the credit will be deducted from the Solar Bank. If you opt for the Year-end payout, Xcel will keep a tally of any excess energy your system has produced over the year and you will be reimbursed annually (in January).

With the Solar Rewards program, you can have a solar system that is expected to produce up to 120 percent of the energy needs of your household, so in building a renewable energy household exists the potential to create a source of revenue.

While the Solar Rewards program substantially offsets the cost of installing a solar system in your home, it’s a good idea to have the money for the installation at hand. You will only be reimbursed after the system has been installed and inspected. If the upfront costs are more than you can handle, some installers will pay the initial costs for you and ask that you pay them the post-rebate cost. For those Xcel Energy customers with a do-it-yourself mentality, you can cut corners by installing the solar panels yourself.

Qualifying homes should have a roof oriented to the south, east, or west. In order to be eligible for Xcel’s rebate program, you should have a roof free of shading/obstruction, homeowner’s insurance covering $300,000 in liability, and permission from your homeowner’s association where applicable.

ClimateSmart Solar Grant program

Program Type	Local grant program
Technologies	Solar water heat, photovoltaic (solar energy)
Amount	Unlimited, but typically less than 50 percent of your out-of-pocket costs
Required Documentation	Online or mail-in application
Official Web Site	http://www.bouldercolorado.gov/index.php?option=com_content&task=view&id=7700&Itemid=2845

The ClimateSmart Solar Grant Program offers financial help for low- and moderate-income residents of the city of Boulder who want to go solar. The grant tends to cover up to 50 percent of the cost of your solar system after tax rebates and incentives. The size of the grant depends on the size of the system you want installed as well as the funds available at the time of application, but grants have ranged from $1,600 to $18,000 in recent years.

In order to be eligible to apply for this grant, you must live in Boulder’s low-income housing. You must not intend to make any sort of profit from the solar system, including selling power to your utility company or installing systems which are financed by a power purchase agreement with your utility company. Take this into consideration when you decide how you would like to fund your new solar system. It might be more economical to accept funding from the utility company depending on a number of factors. To determine which rebates and incentives would benefit you the most, speak with an installer.

The grants are awarded on a competitive basis. Additional factors that are taken into consideration are the energy efficiency of your home (assessed by either an energy audit or, if it’s a new home, the energy rating), a demonstrated interest in investing in a more energy-efficient home, and the efficiency and cost-effectiveness of the proposed solar system. Applications will be reviewed biannually (deadlines are March 15 and August 15), and recipients will be notified in about 45 days of their acceptance.

Colorado Solar Power Financial Incentives

Financial Incentives

Industry Recruitment/Support
- Clean Energy Fund - New Energy Economic Development
Local Grant Program
- Boulder - ClimateSmart Solar Grant Program
Local Loan Program
- Aspen - Solar Power Pioneer Loan Program
- Boulder County - ClimateSmart Loan Program
Local Rebate Program
Private Grant Program
- Energy Environmental Corporation - Grant Program for Non-profits and Low Income Homeowners
- Namaste Solar Electric - PV Grant Program for Nonprofits
Property Tax Assessment
- Renewable Energy Property Tax Assessment
Property Tax Exemption
- Local Option - Property Tax Exemption for Renewable Energy Systems
Sales Tax Exemption
- Local Option - Sales Tax Exemption for Renewable Energy Systems
Sales Tax Refund
- Boulder - Solar Sales and Use Tax Rebate
Utility Grant Program
- Holy Cross Energy - Commercial and Industrial Grant Program
Utility Loan Program
Utility Rebate Program
Rules, Regulations & Policies

Building Energy Code
Energy Standards for Public Buildings
Generation Disclosure
- Fuel Mix Disclosure
Green Power Purchasing/Aggregation
- Aspen - Green Power Purchasing
- Boulder - Green Power Purchasing
Interconnection
- Interconnection Standards
Line Extension Analysis
- Line Extension and Photovoltaic Cost Evaluation
Mandatory Utility Green Power Option
- Mandatory Green Power Option for Large Municipal Utilities
Net Metering
- Colorado - Net Metering
Public Benefits Fund
- Boulder - Climate Action Plan Fund
Renewables Portfolio Standard
- Fort Collins - Electric Energy Supply Policy
- Renewable Energy Standard
Solar Access Law/Guideline
- Boulder - Solar Access Ordinance
Solar and Wind Access Law
- Solar, Wind and Energy-Efficiency Access Laws
Solar/Wind Permitting Standards
- Solar Construction Permitting Standards
Related Programs & Initiatives

Alternative Fuels and Advanced Vehicles Data Center

The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.

Green Power Network

The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.

Weatherization Assistance Program

The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.

Wind Powering America

The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.