2023 Solar Incentives Guide for Montrose, CO - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Montrose.

You'll learn about:

  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2023 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Montrose solar installers to see how much you can save.

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated January 20, 2023

Why you can trust EcoWatch

We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

What Solar Tax Credits, Incentives, and Rebates are Available in Montrose?

Property Tax Exemption for Residential Renewable Energy Equipment

Incentive Type:
Property Tax Incentive
100% exemption for renewable energy system property

Sales and Use Tax Exemption for Renewable Energy Equipment

Incentive Type:
Sales Tax Incentive

Eagle County - Energy Smart Colorado Renewable Energy Rebate Program

Incentive Type:
Rebate Program
Residential
PV: 50% up to $500
Solar Thermal: 50% of project costs
Commercial
50% of project costs

City of Boulder - Solar Sales and Use Tax Rebate

Incentive Type:
Sales Tax Incentive
~15% refund on sales and use tax for the solar installation

Roaring Fork Valley - Energy Smart Colorado Renewable Energy Rebate Program

Incentive Type:
Rebate Program
PV: 25% of cost
Solar Water Heat: $25% of cost
Solar Thermal Tune-up: 25% of project cost
Micro-hydro and Geothermal: 25% of cost

Property Tax Exemption for Community Solar Gardens

Incentive Type:
Property Tax Incentive
100% exemption for the percentage of electricity capacity (AC) of a community solar garden attributed to residential or governmental subscribers or organizations that are already exempt from property taxes

Local Option - Sales and Use Tax Exemption for Renewable Energy Systems

Incentive Type:
Sales Tax Incentive
Varies (local option)

Local Option - Property Tax Exemption for Renewable Energy Systems

Incentive Type:
Property Tax Incentive
Varies (local option)

Efficiency Works - Residential Energy Efficiency Rebate Program (Offered by 4 Utilities)

Incentive Type:
Rebate Program
Air Sealing: $300-$500
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

Incentive Type:
Loan Program
$35,000

Green Colorado Credit Reserve

Incentive Type:
Loan Program
$250,000

Eagle, Garfield, Gunnison, Lake, and Pitkin Counties - Energy Smart Colorado Loan Program

Incentive Type:
Loan Program
$25,000

San Miguel Power Association - Renewable Energy Rebate Program

Incentive Type:
Rebate Program
PV and Small Wind: $0.50 per watt-DC
Solar Water Heating: $1,500

San Miguel Power Association - Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Geothermal Heat Pump: $500 per ton
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 lumens): 50% of cost up to $4/lamp or fixture
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

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


The term "solar incentives" generally refers to financial incentives designed to encourage increased use of renewable energy by making installing and using solar panels more affordable. Various types of incentives, such as discounts, cash back or credit towards your monthly utility bill, might be available to you. Some incentives may be provided via the state of Colorado, by your utility company or by county or municipality, while other incentives are federal. You might qualify for any of the following types of solar incentives:

  • Rebates: A solar rebate is a partial refund credited to your account after you've paid for your solar system. Rebates may 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 tax credits are calculated.
  • Net Metering: Net metering becomes relevant once your solar system is up and running. If you've signed a net metering agreement with your Montrose utility company, they will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this is a dollar-for-dollar credit, while in other places you may receive a refund equivalent to a percentage of the value.
  • Tax Credits: Different from tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the federal government.
  • Tax Exemptions: Tax exemptions may come in two forms. First, there is sales tax exemption, which is applied when you purchase solar panels. The second is property tax exemption, which allows you to exclude the value added by your solar system when paying property tax on your house.

Federal Solar Incentives

When someone says "solar incentives," you probably think of federal incentives first. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. This incentive is a tax credit equal to a specified percentage of the money you spend on solar panels for your home.

The ITC covers solar systems installed after January 1, 2006 and lets you deduct from your taxes a percentage of the total cost of solar panels, accessories, labor and equipment. This credit can apply towards a solar panel system installed on a primary or secondary residence that you own in the United States. The original amount you could claim was 30% of the total cost, although depending on when the project was completed, your credit may range from 26-30%. There is no maximum claim amount.

To more fully understand how the ITC could apply to you, get in touch with your local Montrose solar panel installer and request more information.

In August 2022, the ITC (now titled the Clean Energy Credit) was expanded and extended by the passing of the Inflation Reduction Act. Homeowners can now qualify for a credit equal to 30% of the total solar system installation costs for projects that began after January 1, 2022 and will be finished by the end of 2032. This percentage will then begin to decrease annually until the Clean Energy Credit expires in 2035. Beginning in 2023, it will also be easier to qualify for credits for energy storage systems with the new act.

Click here to learn more about the new Inflation Reduction Act. The easiest way to understand how the new Clean Energy Credit will apply to you is to get in touch with your local Montrose solar panel installers.

State & Local Solar Incentives

Some solar incentives may be offered at the local or state level. Similar to federal incentives, these may include tax credits, rebates and more. These incentives might be provided by the Colorado government, or by your county or municipality. Certain incentives are ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Montrose

The large number of solar incentives available has helped tremendously increase the nationwide adoption of solar energy over the last 15 years. You might qualify for solar incentives from your local utility company, the federal government or the Colorado government. When you're ready to switch over to solar energy, getting in touch with your local Montrose solar panel installation expert is a great first step.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Solar Financing

Blue Raven Solar

★★★★★
4.5

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries (coming 2022)

Best Technology

Tesla Energy

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

EcoWatch's Montrose, CO Solar Incentives FAQs

Can I receive any incentives when I add solar panels to a rental property, vacation home or commercial property?

While we recommend getting in touch with your local solar installer and/or tax professional to better understand what solar incentives apply to you, many incentives apply to a second home, as long as it is in the United States and owned by you. There may be additional incentives available specifically for commercial properties, depending on the details.

If I already have a solar system installed on my house, can I still claim incentives?

If your solar system was 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 may qualify for a tax credit between 26% and 30%, depending on the year it was installed. Speaking with the company that installed your solar system, or any local Montrose solar installer, can help you understand what incentives you qualify for.

Who installs solar panel systems near me?

To find the top solar panel installation companies near you, take a look at our article on Montrose's top solar panel companies.

How long until the federal solar tax credit ends?

The Clean Energy Credit (previously referred to as the federal solar tax credit, or the ITC), is scheduled to end on January 1, 2035. Currently set at 30%, the credit will drop to 26% in 2033 and to 22% in 2034.

Can I apply for incentives both towards the up-front cost of solar panels, and later as reimbursement?

The order your incentives will be applied in may vary depending on which incentives you are claiming but in most cases yes, you can receive multiple types of incentives for your solar project. Speak to your solar installer or a local tax professional to ensure you are claiming all the incentives you are eligible for and applying them in the correct order.

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.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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