Cost of Solar Panels in Colorado (2026)

How much do solar panels cost in Colorado?

With professional installation, a typical 8-kilowatt residential solar panel system in Colorado costs $22,305. Anecdotally, Jennifer in Golden paid $18,000, and William in Grand Junction spent around $20,000 to go solar.

The size of your solar panel system is a big factor in your overall solar costs. As you can see, the cost difference between a 6-kW system and a 7-kW system is thousands of dollars.

NOTE: The table below doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

Average solar panel costs by system size in Colorado

Are solar panels worth it in Colorado?

Solar panels can be a great investment in Colorado. The state gets plenty of sunshine, especially in places like Pueblo, Denver and Alamosa, where solar radiation is better at higher altitudes.

Lots of residents tell us about significant savings on electric bills. For example, Paul in Colorado Springs said his electric bill is only $14 per month, and Bryan in Denver only pays $4 since going solar.

But it doesn’t work out for everybody. For instance, Jennifer in Golden got stuck with a system that doesn't offset her utility bills enough.

Now, Jennifer’s monthly energy bills are higher than before and she can’t get out of an $18,000 contract. Also, this may seem obvious, but you get the most out of solar panels when the majority of your house runs on electricity (as Charnay in Brighton found out too late).

Still, if your house is a good candidate for solar, it’s worth considering if you like the idea of lower monthly utility bills and more energy independence.

» STILL NOT SURE? Solar energy pros and cons

Solar system cost factors in Colorado

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar equipment

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system. All these pieces add up, so make sure you're considering the whole package when you're budgeting. Here are a few common equipment costs:

• Solar panels: In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence. Batteries can cost $7,000 to $18,000 or more, depending on storage capacity, life span, brand and other factors.

• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.

• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone monitoring system costs for $80 to $400.

Size of your system

The average size of solar systems in Colorado is 4.9 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200. This will be roughly the system size you need. For example, if your home used 15,000 kWh last year, you would need a 12.5-kW system.

» WATT’S THE DIFFERENCE? kW vs. kWh

Condition of your roof

Quality solar panels should last 25 to 30 years, so you need your roof to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. This is a frustrating and expensive process you should avoid if you can.

ConsumerAffairs often hears from disgruntled reviewers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before going solar.

Local permits and fees

Permits and interconnection fees, though relatively cheap, are worth mentioning. The Colorado General Assembly enacted a bill aimed at standardizing and streamlining the permitting procedures across the state.

Good solar companies will often handle permitting on your behalf. You can also contact your municipality’s building department directly for accurate information.

Solar incentives in Colorado

Colorado doesn’t have a large statewide tax credit to replace the federal incentive, which ended after 2025. But homeowners can still take advantage of the state sales tax exemption on solar equipment, and some utilities offer rebates, grants or low-cost financing programs.

What to know about net metering

Net metering lets you earn credits for excess solar electricity you send to the grid. You can use those credits to offset electricity you draw from the grid when your panels aren’t producing enough power.

In Colorado, excess solar generation can generally be carried forward to offset future electricity use. However, credit rates, cash-out options and other rules vary by utility and rate plan, so check with your electricity provider before estimating your solar savings.

» MORE: Solar incentives in Colorado

How can I pay for solar panels in Colorado?

Affordable financing makes the upfront costs of solar more manageable, and most solar leases let you start saving from day one with little or no money down.

• Loan: The Residential Energy Upgrade (RENU) loan program is available statewide. Fort Collins Utilities customers can borrow up to $50,000 to pay for energy efficiency upgrades, including solar panel and battery systems.

• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs.

• Power purchase agreement: A solar power purchase agreement (PPA) is similar to leasing. A solar developer buys, installs and maintains solar panels on your property. You buy the power generated by the system on a per kilowatt-hour (kWh) basis. It’s a fixed price, and the cents/kWh is usually cheaper than the utility’s rate for the same amount of electricity.

» SOLAR PANELS: Lease vs. buy

Compare solar companies in Colorado

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Colorado.

FAQ

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Colorado homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Colorado and other states.

Solar costs vs. savings: Colorado and nearby states