Blog Updated: January 2026
Colorado homeowners and commercial property owners are in luck when they go solar because there are many solar incentives and rebates available, making solar panel systems an even better deal. Colorado consistently ranks in the top 10 for the most solar installed per capita, and the state has one of the nation’s strongest Renewable Energy Standards (RESs). This is why there are so many Colorado solar incentives and rebates for residential and commercial solar.
We’ve gathered information on the solar incentive programs available in Colorado to help you understand these opportunities. If you get a free quote from our non-commissioned team, your quote will include all available incentives based on your location and utility. We want to help you get the best deal on your home solar panel system. So, which Colorado solar incentive program are you eligible for?
Key Takeaways: Colorado Solar Incentives
- Customers of City of Fort Collins Utilities can receive up to $1,500 for a residential solar system installation and $6,000 for adding battery storage.
- The city of Boulder offers solar grants to residents based on income. For those who qualify, the incentive is $1/watt up to $8,000.
- The state of Colorado is offering a 10% tax credit on home battery backup systems.
- Tesla is offering up to $1,000 in rebates for a Powerwall 3 battery install.
- The state of Colorado is offering tax credits beginning at $750 for EV purchases.
- Other Colorado solar incentives for both home solar and home battery backup are available.
- Namaste Solar is a local Colorado company since 2005 and will ensure you get every Colorado solar incentive or rebate that is available to you. We keep up to date on the latest developments in the incentives space so you don’t have to. Reach out to our non-commissioned sales advisors to learn more.
Fort Collins Utilities Solar Rebates
Customers of City of Fort Collins Utilities can receive up to $1,500 for a residential solar system installation and $6,000 for adding battery storage. Any system must be owned by a Fort Collins Utilities electric customer and be larger than 500 watts.
The city also offers $50,000 for a commercial solar system installation.
City of Boulder Solar Grant Programs
The City of Boulder offers Colorado solar incentives for both homeowners and businesses, including the following.
- Solar Grant Program: The city offers solar grants to residents based on income and to nonprofit organizations who install new rooftop solar systems. For those who qualify, the incentive is $1/watt up to $8,000. Grant applications are first come, first serve rolling acceptance.
- Solar Tax Rebates: Residents and businesses that install solar energy systems and pay city sales tax may be eligible for rebates on city taxes.
Xcel Energy Solar Reward Programs
Xcel Energy customers may also be eligible to receive extra Colorado solar incentives through their various solar energy reward programs. Some program examples are:
- Solar*Rewards Onsite Income Qualified and Disproportionately Impacted Community Programs (IQDIC): If you live in a Disproportionately Impacted Community and/or meet income qualifications, getting a home solar system can be affordable through this program, though it’s worth noting that funding goes fast. Check out this map to see if you live in a qualifying area. Keep in mind that you may be eligible under income qualifications even if you don’t live in a qualifying area on the map. Check out this page to learn more.
- Solar*Rewards Onsite Commercial and Industrial Entities IQDIC: There are some eligibility requirements dependent on location of your commercial or industrial entity and who you serve, but you could also be eligible for a discount through Xcel on your commercial solar project. Check out this page to learn more.
Electric Vehicle Tax Credits Through the State of Colorado
For Coloradans, there are state rebates for EV and charger purchases:
- Electric Vehicle Tax Credits: As a Colorado taxpayer, you’re eligible for a $750 state tax credit when you purchase or lease a new EV. EVs with an MSRP under $35,000 will be eligible for an additional tax credit of $2,500. There is also an EV exchange program that allows you to claim up to $9,000. This means that the total credit amount Coloradans could be eligible for is $15,000.
Home Battery tax credit in Colorado
The state of Colorado is offering a 10% state tax credit for home battery backup systems. This is a credit for 10% of battery components, sales tax, and shipping costs.
Renewable Battery Connect
The Renewable Battery Connect and Renewable Battery Connect Income Qualified and Disproportionately Impacted Community Programs (IQDIC) can help reduce the cost of home battery backup. Xcel Energy has not released the program funding for 2026. We’ll update this page when those numbers become available.
Home Battery Backup Rebate from Tesla
For those who choose to install one or more Tesla Powerwall 3 batteries, Tesla is now offering a rebate of $500 per Powerwall 3 with a maximum of $1,000 per address. To receive this Tesla Powerwall 3 rebate, the homeowner must must register by March 31st, 2026 and complete the installation by September 30th, 2026. Powerwall 3 and Powerwall 3 Expansion Units are eligible for this rebate.
Have Questions about Colorado Solar Incentives?
Are you wondering how to get the best deal on your home solar panel system with Colorado solar incentives and rebates? Or perhaps you have questions about solar financing? Our non-commissioned solar advisors and utility coordinators are here to answer your questions and discuss your financing options.
We take care of all the details for going solar, and our team can even help you navigate the applications for your Colorado solar incentives and rebates, so you get the best deal. Give us a call at 303-536-8920 or click the button below.
