2025 Solar Incentives Guide for Durango, CO - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Durango.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2024 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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What Solar Tax Credits, Incentives, and Rebates are Available in Durango?
Xcel Energy - Residential Energy Efficiency Rebate Programs
Natural Gas Furnace: $300
EC Motor in New or Existing Furnace: $100
Air Conditioning/Air Source Heat Pump: $300-$600
Mini-Split Heat Pump: $300
Water Heater: $70-$450
Evaporative Cooling: $200-$1,200
Attic Insulation: $350-$600
Wall Insulation: $350-$600
Air Sealing, bypass sealing, and weather-stripping: $175-$450
Ground Source Heat Pump: $300/ton
Smart Thermostat: $50
La Plata Electric Association - Residential Energy Efficiency Rebate Program
Air-Source Heat Pump: $350-$500/ton, $135 for terminal units
Clothes Dryer: $30
Clothes Washer: $30
Dishwasher: $20
ETS Heater: $30/kW
Geothermal Heat Pump: $550/ton
LED Bulbs: Up to $8/bulb
Refrigerator/Freezer: $30
Refrigerator/Freezer Recycling: $60
Thermal Slab Heater: $30/kW
Water Heaters: $55 - $350
Roaring Fork Valley - Energy Smart Colorado Renewable Energy Rebate Program
Solar Water Heat: $25% of cost
Solar Thermal Tune-up: 25% of project cost
Micro-hydro and Geothermal: 25% of cost
Local Option - Sales and Use Tax Exemption for Renewable Energy Systems
Xcel Energy - Home Performance with ENERGY STAR
Air Sealing/Bypass Sealing/Weather-Stripping: $250-$550
High Efficiency Lighting: 30% of cost
Wall Insulation: $450-$700
Evaporative Cooling System: $325-$1200
Central Air Conditioner (New): $400 - $700
Central Air Conditioner (Trade In): $550
Ground Source/Geothermal Heat Pump: $300 per ton
Electric Heat Pump Water Heater: $550
Programmable Thermostat: $25
High Efficiency Furnace: $400
Electrically Commuted Motor: $125
Tankless Water Heater: $200
Standard Tank Water Heater: $100
ENERGY STAR Refrigerator: $15
ENERGY STAR Clothes Washer: $30
Sales and Use Tax Exemption for Renewable Energy Equipment
Xcel Energy - Residential Energy Efficiency Financing
Eagle County - Energy Smart Colorado Renewable Energy Rebate Program
PV: 50% up to $500
Solar Thermal: 50% of project costs
Commercial
50% of project costs
Property Tax Exemption for Community Solar Gardens
Xcel Energy - Solar*Rewards Community Program
Determined through competitive bid. RFP released on March 3, 2016
Property Tax Exemption for Residential Renewable Energy Equipment
Xcel Energy - Solar*Rewards Program
Medium-sized Systems 25.1-500 kW: $0.0375/kWh
Large Systems (>500kW): Determined through competitive bid
Empire Electric Association - Residential Energy Efficiency Rebate Program
Refrigerator/Freezer: $60
Clothes Washer: $80
Clothes Dryer: $180
Refrigerator/Freezer Recycling: $60
Water Heater: $60-$700 plus $100 lifetime tank warranty
Residential LED Lamps: 50% of cost
Air Conditioners: $200-$300
Ground Source Heat Pump: $500-$1,000/ton
Air Source Heat Pump: varies, see program website
La Plata Electric Association - Renewable Generation Rebate Program
PV greater than 10 kW-DC: Performance-based incentive is paid every 6 months for 10 years, currently $1.oo per MWh
Check LPEA website for future REC values.
Contact LPEA for wind and hydro incentives
Green Colorado Credit Reserve
Efficiency Works - Residential Energy Efficiency Rebate Program (Offered by 4 Utilities)
Insulation: Up to $1,815
Duct Sealing: $200 (gas-heated homes only)
Window Replacement: Up to $1,000
Air Handler Blower Motor: $150
Whole House Mechanical Ventilation: 20% of cost
Heat Pumps: $500
Replacement Furnace: $300-$500 (gas-heated homes only)
Ductless Mini-Split: $250/head
Replacement Gas Boiler: $300 (gas-heated homes only)
Replacement Water Heater: $100-$500
AC System: $150-$500
Whole House Fan: $275
Evaporative Cooler: $500
Residential Energy Upgrade (RENU) Loan Program
City of Boulder - Solar Sales and Use Tax Rebate
Eagle, Garfield, Gunnison, Lake, and Pitkin Counties - Energy Smart Colorado Loan Program
San Miguel Power Association - Renewable Energy Rebate Program
Solar Water Heating: $1,500
Local Option - Property Tax Exemption for Renewable Energy Systems
San Miguel Power Association - Energy Efficiency Rebate Program
Split System Air Conditioners: $100 - $150 per unit
Water Heater: $60/unit plus $60/unit for lifetime warranty
Geothermal Heat Pump Water Heater: $120
Air-Source Heat Pump Water Heater: $370
Electric Thermal Storage Unit Controlled by Timer: $16/kW
Thermal Slab: $12 per kW
Air Source Heat Pump: $300 - $450 per ton, $85/unit for through-the-wall mounted pumps
Refrigerator: $80
Freezer: $80
Washing Machine: $60-$80
Clothes Dryer: $30-$90
Dishwasher: $40
Irrigation Motor: $8 per HP
Variable Speed Drive Retrofit: $1,600-$6,800
LED Bulbs (500+ lumens): 50% of cost up to $8/lamp or fixture
LED Bulbs (<500 $4 50%
Yard Lights: 50% of cost up to $100
Tube LEDs: 50% of cost up to $8/ft
LED Strip, short tube, and bar lights: 50% of cost up to $8/foot
Commercial Lighting: Varies, contact utility
Weatherization: 50% of job cost
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
The term "solar incentives" generally refers to financial incentives designed to encourage people to use renewable energy by making the installation and use of solar panels more affordable. Solar incentives may include upfront discounts, cash back or credit towards your monthly utility bill. Some incentives are handled by the federal government, some by the Colorado government and some by your utility company, county or municipality. Some solar incentives you might qualify for are:
- Tax Exemptions: Your solar panel system might qualify for both sales tax and property tax exemptions. Sales tax exemptions are effective at the time of purchase. Property tax exemptions allow you to ignore the added value of the solar panels when calculating property taxes on your house.
- Tax Credits: Tax credits are dollar-for-dollar reductions (not deductions) in the amount of tax that you owe the federal government.
- Net Metering: You may be able to sign a net metering agreement with your Durango utility company. This agreement may apply to all or a percentage of the excess electricity your solar panels generate. They will then subtract this value from your monthly utility bill.
- Rebates: A solar rebate is a partial refund after the purchase of your solar system. Rebates might be offered by your local utility company, your state or your county. The cash back that you get from the rebates is normally applied before calculating tax credits.
Federal Solar Incentives
Federal solar incentives are likely to be the first thing that you think of when you think about solar incentives. The Federal Solar Investment Tax Credit, or ITC, is the most well-known federal solar incentive. The ITC provides a tax credit for a specific percentage of your solar system's cost.
The ITC can be applied to solar panels installed on your primary or secondary residence in the United States. The solar panels must have been installed after January 1, 2006, on a property you own for you to be eligible for the credit. The ITC originally paid out 30% of all system costs (panels, equipment, labor and accessories), although the amount has fluctuated slightly over the last few years between 26-30%. The installation date of your solar system will determine what percentage you are eligible for. There is no cap on the amount you can claim.
Curious how the ITC might apply to your specific situation? Reach out to your local Durango solar panel installer to get more information.
The Inflation Reduction Act, passed in August 2022, made some changes to the ITC (as well as retitling it the Clean Energy Credit). The new Clean Energy Credit extends until 2035. Homeowners are now eligible for a 30% credit for solar systems that began installation on or after January 1, 2022, and will be done by December 31, 2032. This credit will then be decreased by a few percentage points every year until it expires. Beginning in 2023, it will also be easier to get credits for energy storage systems under this new program.
More information about the new Inflation Reduction Act can be found here. To better understand how the new Clean Energy Credit might apply to you, talk to your local Durango solar installation expert.
State & Local Solar Incentives
Tax credits, rebates and more can be provided at multiple levels. Along with federal solar incentives, there are often state and local ones as well. Certain incentives are offered for only a limited time, while others are ongoing. These local incentives could come from your county or municipality, or from the Colorado government.
Next Steps for Installing Solar in Durango
Solar incentives might be offered by your local utility company, the Colorado government or the federal government. The variety of incentives available has helped nationwide use of solar energy increase greatly in the last 15 years. Contact your local solar panel installation company today to find out more information and to save as much money as possible on solar panels for your Durango home.
EcoWatch's Durango, CO Solar Incentives FAQs
My home already has solar panels installed. Do I qualify for any incentives?
If your solar panels were installed after January 1, 2022, you may qualify for the recently increased 30% tax credit under the Inflation Reduction Act. If your system was installed between 2006 and 2021, you might qualify for a tax credit between 26% and 30%, depending on the exact installation date. Talking to the company that installed your solar system, or any local Durango solar installer, can help you learn what incentives you can apply for.
What are some environmental benefits of installing solar panels on my house?
Solar energy is renewable — by switching where you get your energy, you help lessen the strain on our planet's resources. A solar system can also lower the CO2 emissions from your home by 0 pounds yearly, or roughly 0 pounds in 20 years.
I want to trade in my old appliances for ones that are more energy-efficient. Are there any benefits I can apply for?
The recently passed Inflation Reduction Act introduces a number of incentives designed to reward homeowners for making eco-friendly upgrades. Some incentives include tax credits and rebates for installing new electric appliances. You can find more details about these incentives here.
Can I use both solar and another type of renewable energy to power my home?
Yes, you can use multiple types of renewable energy to power your home — for example, a combination of solar and wind power. You can also use both renewable energy sources and a non-renewable backup source of energy. Make sure that you discuss your plan with your local Durango solar panel installer, to make sure you know what you'll need and what types of incentives you will or won't qualify for.
Can I get any financial incentives when I add solar panels to a rental property, vacation home or commercial property?
Many solar incentives are intended to apply to a property located within the United States that you own, and most secondary residences will fall under this distinction. Other solar incentives may be available for commercial properties, depending on the details. We recommend talking to your local solar installer and/or tax professional to best understand what incentives may apply to your specific situation.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.