Thinking about going solar in Colorado? You may be asking the same question many Denver homeowners are searching for right now:
👉 “How much do solar panels cost in Colorado in 2025?”
The answer is simple — the cost of solar is lower today than it will be in 2026. That’s because the 30% federal solar tax credit ends on December 31, 2025. If you wait until 2026, you could pay thousands more for the exact same system.
In this guide, we’ll break down:
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What solar costs in Colorado right now.
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How incentives lower the price.
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Why the 2025 deadline matters.
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Real Colorado homeowner examples.
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How BriteStreet helps families lock in savings.
What Is the Average Solar Panel Cost in Colorado in 2025?
The average cost of solar panel installation in Colorado is $2.60–$3.20 per watt. For most homes, that means:
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6 kW system: $15,600–$19,200 before incentives.
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8 kW system: $20,800–$25,600 before incentives.
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10 kW system: $26,000–$32,000 before incentives.
These numbers can vary depending on:
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Home size and roof type.
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Energy usage (bigger homes, more panels).
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Optional battery storage.
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Local permitting and jurisdiction.
💡 Pro Tip: Colorado homeowners often see monthly bill savings of $150–$250, meaning the system can pay for itself in 6–10 years.
How the 2025 Federal Tax Credit Lowers Solar Panel Costs
The federal 30% Solar Investment Tax Credit (ITC) is the biggest incentive available right now. Here’s what it means for a typical Colorado family:
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$25,000 system × 30% = $7,500 tax credit.
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Net cost drops to just $17,500.
Add in Colorado’s state benefits:
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Property Tax Exemption (you won’t pay more property taxes when your home value increases with solar).
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Sales Tax Exemption (no state sales tax on your equipment).
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Utility rebates (Xcel Energy offers programs that lower costs even further).
Together, these incentives make 2025 one of the most affordable years in history to install solar panels in Colorado.
Why 2026 Could Cost You Thousands More
If you wait until 2026, here’s the reality:
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The 30% federal tax credit expires December 31, 2025.
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On a $25,000 system, you’ll lose $7,500 in savings.
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Homeowners who delay will pay the full price with no federal help.
Example:
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Denver homeowner installs 8 kW in 2025: ~$25,000 → $17,500 after credit.
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Same system in 2026: ~$25,000 → $25,000 (no credit).
That’s a $7,500 difference for the exact same system.
Real-World Colorado Example
One of our Denver-area customers installed a 9 kW solar energy system in early 2025
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Gross cost: $28,000.
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Federal credit: -$8,400.
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Net cost: $19,600.
Their monthly Xcel Energy bill dropped from $230 to $35. At that pace, their system will pay for itself in just over 7 years.
If they had waited until 2026? Their cost would have stayed at $28,000 — nearly a full extra year added to the payback timeline.
Frequently Asked Questions (FAQ)
Do solar panels really work in Colorado winters?
Yes. Even with snow, Colorado’s high elevation and 300+ days of sunshine per year make solar very effective year-round.
What’s the solar payback period in Denver?
Most homeowners see payback in 6–10 years, depending on system size and energy usage.
Are solar batteries worth it in Colorado?
Yes. With falling battery prices and more frequent outages, many families add storage for peace of mind. (Check out our solar battery guide for details.)
Does solar increase my home’s value?
Yes. Studies show solar homes sell faster and for more money — without increasing property taxes in Colorado.
Why Choose BriteStreet Solar in Denver?
At BriteStreet, we’ve seen solar technology and pricing change dramatically over the last decade. But one thing hasn’t changed — our commitment to doing things right.
Here’s why Colorado families trust us:
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Tesla Certified + NABCEP Certified installers.
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In-house W2 crews — no subcontractors.
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Fast, dependable timelines across 42+ Colorado jurisdictions.
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Local, Colorado-owned and operated since 2012.
We don’t just install panels. We build energy systems that protect your family for decades.
Why Homeowners Are Acting Now
Across Colorado, homeowners are rushing to get their solar projects started before the end of 2025. With the federal tax credit expiring soon and demand increasing every month, installation timelines are already tightening.
At BriteStreet Solar, we’re helping families secure their place in the queue early, locking in today’s prices, guaranteed timelines, and full access to the 30% federal credit before it’s gone.
Don’t Miss the 2025 Deadline
The bottom line: waiting until 2026 could cost you thousands of dollars.
With the 30% federal tax credit ending, now is the best time to make the switch to clean energy.
👉 Get your free solar quote today and see your real numbers:
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📞 (844) 442-7483