When it comes to solar energy, Colorado is a state that has plenty of sun and is thus ripe for solar power production. Incentives for solar power have been around for a while at the state and federal level, but they have increased in recent years as the technology has become more viable and costs have come down. Incentives can make a big difference in the upfront cost of installing solar, and they also add to the value of your home.

Federal incentives for solar power include the Investment Tax Credit (ITC), which allows you to deduct 26% of the cost of your solar installation from your federal taxes. There is also the Residential Renewable Energy Tax Credit, which gives you a credit of 30% of the cost of your system. These credits are available for both new and existing homes.

Colorado also offers several incentives for solar power. The biggest is the Solar Rebate Program, which offers a rebate of $0.50 per watt up to $6,000 for residential systems and $10,000 for commercial systems. There is also a Property Tax Exemption that exempts the value of your solar installation from property taxes. This can save you thousands of dollars over the life of your system.