Blog Updated: September 2026
Battery storage is a game changer for the solar industry. And right now there are battery rebates available to Colorado homeowners, including the Xcel battery rebate, that make storage more financially appealing than ever.
At Namaste Solar, we offer different battery storage options to meet your needs and preferences while also complying with local utility requirements. Those products include the Tesla Powerwall 3, the Enphase 5P, and Enphase 10C batteries. You can buy them as an addition to your solar system or as a stand-alone option. These batteries will ensure that you’re resilient to grid outages and allow you to use your stored solar energy at night.
There are several rebates and incentives available to Coloradans that can be stacked together, bringing down the cost of battery storage significantly. This includes options from several utilities including; Xcel Energy, Poudre Valley REA and Fort Collins. Home battery backup is the most affordable it’s ever been, and the value it offers a homeowner is unmatched. When paired with solar, battery storage allows homeowners to use their stored solar power at night, making the most of the ample energy from the sun. Additionally, battery storage is the best way to protect yourself from grid outages, and the value of having battery storage will only increase as extreme weather events continue.
These incentives aren’t going to last forever – in fact, some of them could be taken away at any time. So, taking advantage now is definitely in your best interest.
The Xcel Battery Rebate
Xcel Energy highly incentivizes battery storage with their program called Renewable Battery Connect. Renewable Battery Connect provides an upfront incentive for homeowners that agree to allow Xcel to draw power from your battery during peak demand. The incentive is $250 per kW up to $5,000 per application plus an additional $100 annually for 5 years. A special component of this program called the IQ/DIC program provides $500 per kW up to 75% of the equipment-only cost for income qualified and disproportionately impacted customers.
The funding for this program is limited and may become unavailable at any time.
PSPS Backup Battery Rebate Program
Some Colorado residents can take advantage of Xcel Energy’s Safe for Colorado rebate program. In this program, Xcel offers a $10,000 rebate for home battery backup systems to Colorado residential customers in high-risk (Tier 2 or 3) wildfire zones who rely on life-sustaining medical equipment. To see if you qualify, you’ll need to do a preemptive check with Xcel that involves submitting a doctor’s note. Here’s a link for more information and to get yourself approved: Backup Battery Rebate | Public Safety Power Shutoffs | Xcel Energy. This rebate is not stackable with the Renewable Battery Connect program. If approved, your rebate will be mailed to you 60 days after installation.
State Tax Credits
The state of Colorado is also offering a 10% income tax credit on battery components, sales tax, and shipping costs. This state tax credit is unaffected by any utility rebates. You would file for this when you file your taxes during the tax season after installation.
Battery Incentives for Fort Collins Utility Customers
Fort Collins Utility offers the following incentives for both solar and battery storage. The rebate on solar is $300 per kW, up to $1,500. The rebate on battery storage is $300 per kwh capacity, up to $6,000. The maximum for a new system and for adding to an existing system is $7,500.
Namaste Solar is one of Fort Collins’ approved contractors that customers must use to qualify for a rebate. We’ll handle everything, and we will submit the application on your behalf. Learn more here.
The City of Boulder’s Solar Rebate Ordinance
The City of Boulder enacted it’s Solar Rebate Ordinance in 2008. This ordinance may rebate approximately 15 percent of the city sales and use tax paid on materials and permits for the solar installation. In April 2026 the ordinance was updated to include taxes paid on permanently installed battery systems.
So, Is Battery Storage Really Worth It?
The value of having a resilient home that’s powered by clean energy and will stay up and running during a grid outage cannot be overstated. As extreme weather events due to climate change increase in frequency and intensity, increasing your home’s resiliency is a valuable investment.
On top of that, you’ll be able to regularly use the solar power you generate at night when you have battery backup. It’s a great feeling to get the most out of your solar and truly own your power.
We know that the numbers we’ve shared with you, like the Xcel battery rebate, are exciting but perhaps overwhelming to navigate. Our non-commissioned sales advisors are experts at stacking rebates to save you the highest amount possible. We’ve worked exclusively in the Colorado market since 2005 – we know the ins and outs of Colorado solar and navigating the many utilities in our area. And since our team is non-commissioned, they’re invested in designing a system that meets your needs, not just selling more panels. Click the button below to get started.
