Cost Considerations

Solar Installation Costs

In 2020, homeowners typically spent between $10,000 and $20,000 to buy a solar panel system, but it may cost more or less depending on incentives, the size of your system, the type of equipment you install, and the company you move forward with.
There are a number of websites, like Solar Estimate Website and Energy Sage Website that offer a more detailed snapshot and comparison of what a solar energy system is likely to cost you based on where you live.

Incentive Programs

There are currently no state-wide incentives for solar. Visit the Colorado Energy Office website for the latest details.

Federal Investment Tax Credit

The Investment Tax Credit (ITC) allows you to deduct a portion of the install costs of your solar energy systems from your federal taxes. The process for claiming the tax credit is straightforward, requiring the completion of the 2-page IRS Form 5965, but not everyone is eligible. YVEA recommends consulting with a tax accountant to verify eligibility. Visit the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics Article.

Form and Instructions: For more information about IRS Form 5965 visit the IRS website.

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