Solar Installation Costs
For 2025, here’s a cost snapshot considering data accumulated from over 50,000 solar only (no batteries) installations nationwide.
- Small systems (3-5 kW): $8,000 – $15,000
- Medium systems (6-8 kW): $15,000 – $24,000
- Large systems (9-12 kW): $23,000 – $36,000
It should be noted that installing solar in the Colorado High country often requires a premium due to expensive labor costs and racking equipment that is engineered to handle heavy snow loads. Members are welcome to reach out to YVEA’s Energy Resources Team to help compare quotes (970-871-1160, EnergySolutions@yvea.com)
Incentive Programs
| Incentive | Type | Description |
|---|---|---|
| ITC Tax Credit (25D) | Federal | Federal The 30% federal Investment Tax Credit remains the single most valuable solar incentive, reducing a $30,000 system cost by $9,000. However, Congressional action has scheduled this credit to sunset by December 31, 2025. To secure this credit, a system must be fully installed, operational, and been given an official Permission to Operate notice by YVEA. Projects locked into a Power Purchase Agreement (PPA) with a installer may still qualify for the ITC after Dec 31st, 2025. |
| Colorado Solar Sales Tax Exemption | State | You don't need to pay any sales tax on new solar panel systems in Colorado, saving at least 2.9% of your system costs. |
| Colorado Solar Property Tax Exemption | State | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. Colorado’s average property tax is 0.6% |
| Colorado RENU Loan | State | Offers solar financing at rates that match or slightly beat the market average, don’t require collateral (like a home equity loan), and don't come with any hidden fees. |
| Colorado DR 1307 - Residential Energy Storage System Credit | State | 10% of systems capable of retaining, storing, and delivering energy by chemical, thermal, mechanical, or other means, including batteries and batteries paired with on-site generation. Incentive only applicable for the purchase price - not including permit fees, assembly, installation, or other construction services. |
Additional Resources
- Colorado Energy Office – for up to date information on State programs.
- Solar Tech’s 2025 Cost Price Guide – for a deeper dive into cost drivers, including batteries into a system, and calculating ROI.
- YVEA’s Qualified Installer List – to help you begin receiving quotes from installers that we deem high quality.