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AIColorado Solarby Discovery Clean Energy

Home Solar · Denver

Solar Panel Cost in Denver, CO

A typical Denver home system of 6–8 kW costs about $16,800–$26,000 installed at our $2.80–$3.25 per watt range, before any financing. With the federal homeowner credit ended for systems finished after 2025, that’s the real number — and whether it pays back depends on your Xcel usage, your roof, and how much of your bill falls in the 5–9 pm peak.

Updated September 2026
01

What drives the price on a Denver roof

Our per-watt range covers panels, inverters or microinverters, racking, SolarAPP+ permitting and Xcel interconnection paperwork. Where a Denver job lands in that range depends on roof complexity — dormers and multiple small planes on older homes take more labor than one long ranch roof — and on the equipment you choose.

Colorado exempts solar modules, inverters and racking from state sales tax. Local sales tax treatment varies by city, so we show taxes as a separate line rather than burying them.

02

Payback under Xcel’s rules, honestly

Xcel credits the energy you export and lets those credits roll forward, so a well-sized system can offset most of your annual usage. What it can’t do on its own is cover the evening peak, when on-peak prices run about 2.7 times off-peak. Homes with heavy daytime use or flexible evening loads tend to see better returns than homes whose usage is concentrated after 5 pm.

Without the 30% federal credit, cash paybacks are longer than the numbers many Denver homeowners saw quoted a few years ago. For some roofs — shaded by old elms, facing north, or due for replacement soon — solar may not pay off in a reasonable time, and we’ll tell you that. We run the numbers from your actual Xcel bill instead of quoting a generic payback.

03

Lease, PPA or buy in Denver

Because a leasing company can still claim the federal §48E credit for systems placed in service by the end of 2027, leases and PPAs can pass some of that value to you. Our lease and PPA offers typically price power 20–30% below retail utility rates, around $125–$240 a month with a 0–3% yearly escalator.

Buying still wins over the life of the system if you can pay cash or finance at a good rate; we offer Colorado RENU loans through Westerra Credit Union (7.74–8.99% APR, up to 20 years) and Concert Finance (8.99%, up to 25 years). Terms as of September 2026; verify current rates.

FAQ

Questions we hear

How much does a 7 kW solar system cost in Denver?

At our $2.80–$3.25 per watt range, a 7 kW system is about $19,600–$22,750 installed. Your exact price depends on roof complexity and equipment, and it’s before any lease or loan structure.

Is solar still worth it in Denver without the 30% tax credit?

For many unshaded roofs with moderate to high Xcel usage, yes, but payback is longer than it used to be. For shaded roofs or homes with most usage in the evening peak, it may not be. We’d rather show you the math on your bill than promise a number.

Does Denver charge sales tax on solar panels?

Colorado exempts solar modules, inverters and racking from state sales tax. Local tax treatment is set by each city, so we list tax separately on your quote.

Should I get a new roof before solar in Denver?

If your roof has less than about 10 years left, usually yes. We do roofing and solar together, and we don’t do remove-and-reinstall later, so the cheapest path is often one project.

Get honest numbers for your roof

Our Colorado crew looks up your utility’s current rules, models your roof, and tells you straight — including when solar or a battery won’t pay off.

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