Solar & energy in Colorado

300 days of sunshine + good NM. Payback typically 8-10 years.

Avg electricity rate
$0.14/kWh
USA average
Peak sun hours
5.0
Annual average
Net metering
good
Full retail NM (state mandate)
Solar friendliness
★★★★☆
Out of 5

Key facts

  • RegionColorado
  • CountryUSA
  • Average rate$0.14/kWh
  • Peak rate (TOU)$0.2/kWh
  • Off-peak rate (TOU)$0.1/kWh
  • Peak sun hours5.0 hrs/day
  • Net metering policyFull retail NM (state mandate)
  • NM qualityGood
  • Solar friendliness rating★★★★/5

Available incentives

  • Property tax exemption

Net metering quality

Quality of net metering policy (higher = better for solar economics):

Good — Full retail NM (state mandate)

What this means

Good net metering policies keep solar profitable with reasonable payback periods.

Example: 900 kWh/month household in Colorado

At 5.0 peak sun hours and a 400W panel, you'd need approximately 17 panels (6.8 kW system) to cover your usage. That produces ~10,673 kWh/year, saving about $1,494/year at the 0.14/kWh local rate.

Run the full calculator

Going solar in Colorado

Colorado, in Colorado, USA, has 5.0 average peak sun hours per day — excellent for solar. The local electricity rate is $0.14/kWh, around the USA average.

Net metering in Colorado is rated good. Full retail NM (state mandate). This significantly affects solar payback: with excellent net metering, every excess kWh you produce is credited at full retail value; with poor net metering, exports may be worth only 10-30% of retail, making battery storage much more attractive.

Available incentives include: Property tax exemption. These can substantially reduce the upfront cost of solar and battery installations. Note: the US federal solar tax credit expired December 31, 2025. State and local incentives still vary by region. South African taxpayers can claim accelerated depreciation under SARS section 12B.

Next steps

Use the Solar Panel Sizing Calculator with 5.0 peak sun hours to find out exactly how many panels you need. Then check the Solar Savings Calculator for a 25-year projection using the local $0.14/kWh rate. If net metering is poor in Colorado, also run the Battery ROI Calculator — batteries may be essential rather than optional.