Denver Solar Rebates, Incentives, and Tax Credits
If you live in Denver, you are eligible for (up to) 3 different incentives for going solar – one from the federal government and two from utility provider Xcel Energy.
When you combine these incentives, Denver residents are eligible to save nearly half-off the cost of going solar before generating the first watt of solar electricity. And that’s not even including the extra discount (on this campaign) negotiated by One Block Off the Grid!
1. 30% Federal Solar Tax Credit
The Federal Investment Tax Credit for solar has been beefed up by last year’s stimulus package, making 2010 a great year to go solar. This is a tax credit (better than a deduction because it counts against the income tax you already owe the IRS) equal to 30% of your out-of-pocket expense for solar.
You will have to file for this credit yourself, but the installer can usually help you find the right forms.*
2. Solar*Rewards Cash Rebate from Xcel Energy
The Solar*Rewards rebate from Xcel Energy has fluctuated over the past few years, but was recently INCREASED to $2.00 per DC watt. The current rebate amount can be accessed at anytime by going to the Solar*Rewards details webpage. Right now this $2.00 per DC watt rebate will subsidize 38% of your out-of-pocket cost for going solar.
3. Xcel REC Program
Renewable Energy Credits (RECs) are credits you automatically earn by producing renewable energy (1 REC for every 1,000 kWh of generation). These credits have monetary value – currently, each REC for residential-size solar panel systems in Colorado is worth $0.45 per DC watt, or 9% of your out-of-pocket cost. REC payments are paid as a lump sum when your system is installed.
So what does all this mean?
Well, even though the Solar*Reward rebate and the REC payment are technically different, they both are paid by Xcel Energy when your system is installed, so here at 1BOG we like to keep things simple and lump them together into a single number. When you do the addition, Denver residents will save nearly 50% off their out-of-pocket cost for solar (or $2.45 per DC watt), in addition to the 1BOG discount and the 30% federal tax credit.
These rebates and tax credits, coupled with the 1BOG discount and excellent sun exposure, make this the best time to go solar in Colorado!
Sign up for 1BOG’s Denver campaign if you’re interested in learning more about getting solar for your home.
*We are not tax professionals so please consult with your accountant and solar installer for the nitty-gritty details.
