Blog Updated: January 2026
Battery storage is a game changer for the solar industry. And right now there are rebates available to Colorado homeowners, including the Xcel battery rebate, that make storage more financially appealing than ever.
At Namaste Solar, we offer the Tesla Powerwall 3 and the Enphase 5P Battery as battery storage options for our customers. 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 solar system at night. The Powerwall 3 comes with improved technology, including an internal inverter, which has significantly driven down the cost of adding storage.
Beyond that, there are several rebates and incentives available to Coloradans that can be stacked, bringing down the cost of battery storage even further. This includes the Xcel battery rebate and incentives from cities like Denver and Fort Collins, as well as the 30% federal tax credit.
Home battery backup is the most affordable it’s ever been, and the value it offers a homeowner is unmatched. Since battery storage is the only way you can be protected from grid outages and ensure your home is truly resilient, the value of having battery storage will only increase as extreme weather events continue.
And 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
In the past, Xcel has highly incentivized battery storage with their program called 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.
State Tax Credits
The state of Colorado is also offering a 10% 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, much like the federal tax credit.
Battery Incentives for City of Denver Residents
Denver’s rebate is called the Denver Climate Action rebate. Only residents of the city of Denver qualify for this rebate. And the incentive is significantly higher if you have a heat pump. There are multiple types of heat pumps that qualify. The incentives are as follows:
- If the home has a heat pump space heater (HPSH), heat pump water heater (HPWH), or vehicle-to-building electric vehicle charger (V2B EV):
- Rebate maximum is $2,750
- Rebates cannot exceed 80% of the total cost
- All other homes:
- Rebate maximum is $500
- Rebates cannot exceed 80% of the total cost
Battery Incentives for Fort Collins Utility Customers
Fort Collins Utility is the only other utility that’s currently offering solar and battery incentives.
The rebate on solar is $200/kW-DC, up to $1,000. The rebate on battery storage is $150/kwh capacity, up to $3,000.
The minimum equipment size to be eligible is 500 Watts-DC for Solar PV and 6 kWh for Battery. The maximum for a new system and for adding to an existing system is $4,000.
Namaste Solar is one of Fort Collins’ approved contractors that customers must use to qualify for a rebate. We’ll handle everything and will submit the application on your behalf. Learn more here.
So, Is Battery Storage Really Worth It?
It wasn’t too long ago that the payback period for battery storage was nonexistent. But now, with the equipment cost plummeting due to advanced technology and all these rebates stacked, home battery backup is extremely affordable.
Plus, 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.
We know that the numbers we’ve shared with you, like the Xcel battery rebate, are exciting but likely 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 telling you the truth and not just giving you a sales pitch. Click the button below to get started.
