Colorado Solar Incentives that are Available Now

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.