What the end of the federal credit actually means for you
The §25D residential clean energy credit ended for systems whose installation was completed after December 31, 2025. If you buy your system outright or with a loan today, there is no federal tax credit to claim. Plenty of websites and door-knockers still quote “30% off” — if someone does, ask them to show you the code section.
What survives is a business credit, §48E, which the owner of a leased or PPA system can still claim if the system is placed in service by December 31, 2027 (as of September 2026; verify current terms). That’s why a lease or PPA can now come in 20–30% below what you pay the utility per kWh, with typical payments around $125–$240 a month and escalators of 0–3% a year.
Your utility decides your payback more than your roof does
Colorado net metering isn’t one rule. On Xcel Energy, exported power is credited in kWh and carried forward, which is about as friendly as it gets. Fort Collins Utilities credits exports at the time-of-day rate in effect when you export, and Longmont Power & Communications moved systems installed from 2025 onward to a value-of-solar credit that sits below retail.
Colorado Springs Utilities approved a net-metering overhaul on September 22, 2026. New solar customers will pick between a $1-a-day charge with time-of-use credits or a demand charge with 1:1 kWh credits; existing customers get about a five-year grace period. The start date for new installs hasn’t been confirmed, so if you’re in Springs territory, ask us before you sign anything.
Rural co-ops follow a separate statute, and their export and true-up terms vary a lot. We look up your specific utility’s tariff before we size anything, because the same array can be a great deal in one territory and a marginal one twenty miles away.
What a system costs, in plain numbers
At $2.80–$3.25 per watt, an 8 kW system — common for a Front Range home with a mid-sized bill — lands around $22,400 to $26,000 before any utility rebate. Colorado exempts solar modules, inverters and racking from state sales tax, though local sales tax may still apply depending on your city.
If you finance, we work with the Colorado RENU loan through Westerra Credit Union (7.74–8.99% APR, up to 20 years) and Concert Finance (8.99%, up to 25 years), as of September 2026. At those rates, a loan payment can land near or above your current bill for the first years, so we show you the year-by-year cost rather than a single headline number.
Designing for hail, snow and a mile of altitude
Front Range hail is a real design input. Panels certified to IEC 61215 are tested against 25 mm ice balls at about 23 meters per second; we pick modules and mounting with that in mind and make sure your homeowner’s policy covers the array before we install.
Colorado’s thin, dry air and cold panels help production, and snow usually slides off tilted glass within a day or two of sun. Where shading from mature trees or neighboring homes cuts production meaningfully, we’ll tell you so up front rather than pad the estimate.
FAQ
Questions we hear
Can I still get the 30% federal solar tax credit on my house?
Not on a system you own, if installation is completed after December 31, 2025 — §25D ended then. If you had an unused credit from a system finished in 2025 or earlier, that carryforward can still be used. A lease or PPA provider may still claim a business credit and pass some of that value through in a lower price (as of September 2026; verify current terms).
How big a system does a typical Colorado home need?
It depends on your usage, not your square footage. We start from your last 12 months of kWh and your utility’s size cap, then adjust for shading and roof orientation. Many Front Range homes land somewhere in the 5–10 kW range, but an all-electric home with an EV can need more.
Is a lease or PPA better than buying now that the credit ended?
Sometimes. A lease or PPA can start saving you money from month one with no upfront cost, while owning usually wins over 20-plus years if you can pay cash or get a good loan rate. The catch with leases is the escalator and what happens when you sell the house. We run both in our financing comparison so you can see the crossover year.
Will I have to pay property tax on my panels?
Generally no. Colorado treats most residential solar systems used mainly on-site as exempt from property tax. Confirm with your county assessor if your system is unusually large.
How long does it take from signing to turning the system on?
It varies with your permitting office and utility. Denver uses automated SolarAPP+ review, which is fast; other jurisdictions review plans by hand. Utility interconnection approval and the final meter swap often take longer than the install itself, which is usually a day or two on the roof.