Rebates & Tax Credits
State Rebates
Colorado's Amendment 37
was passed as a voter initiated proposal to require more renewable energy provisions in our state. Regarding solar specifically, those utilities that have 40,000 customers or more are required to have a certain percentage of their power come from solar electricity. In Western Colorado, this means that Xcel Energy must comply with Amendment 37 and the only feasible way to meet this goal is to offer rebates. Therefore, if your utility provider is Xcel Energy, you get a rebate amount back of 30-40% of the installed cost of the system. Some smaller co-ops and local utility providers are also offering their own rebate programs. Others have opted out.
Federal Tax Incentive
In addition to the Xcel Energy rebate, there is a federal commercial solar tax credit available for 30% of system cost creating a very inviting situation to add solar to a business. This 30% tax incentive leaves the bottom number of a commercial solar electric system extremely small. Pair the Xcel Energy rebate with the federal tax incentive and then add on the accelerated depreciation of this system, considering also the free power created by the system each year, and you have created a situation in which a commercial solar system seems impossible to say no to.
