Solar Panel Cost Guide in Colorado Springs, CO (Sep 2022)

  • Colorado Springs Solar Installation Cost: $9,453
  • 25-Year Savings: $21,419
  • Payback Period: 7.7 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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Average Cost of Solar Panels in Colorado Springs

We go over average solar pricing in Colorado Springs.

In Colorado Springs, solar panels cost about $3 per watt on average. To cover the typical energy needs of the average home in Colorado Springs, most homeowners require a 5.0-kilowatt system. Using the figure above, a solar installation costs about $9,453, or $6,995 after the federal solar tax credit of 30% is applied.

The prices above are just estimates to give you an idea of how much solar panels could cost. The exact cost of installing solar panels can vary quite a bit depending on a few factors, such as what size system you need, your energy consumption and what solar installer you go with. Even with the high initial cost, the average Colorado Springs homeowner can save about $23,000 on their power bills over 20 years, which is one of the perks of solar.

Click the button below to get connected to a highly rated solar installer in your area for a custom estimate.

Solar savings over time in Colorado Springs

Year Return on Investment
1 years $-8,218
3 years $-5,748
5 years $-3,278
7 years $-809
9 years $1,661
11 years $4,131
13 years $6,601
15 years $9,070
17 years $11,540
19 years $14,010
21 years $16,480
23 years $18,949
25 years $21,419

Top Solar Installers in Colorado Springs

Trying to install solar panels on your own can be a dangerous undertaking, which is why using a solar installer is a good option for many homeowners. Also, companies with a high reputation that cost more upfront could actually save you money in the long term due to their warranties, repair services and expert design.

If you'd like to make the switch to solar but still aren't certain which solar installer to go with, here are our suggestions for providers nearby:

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

The Green Panel

★★★★★
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

See all of the solar companies in Colorado Springs

Factors that Affect Solar Panel Costs in Colorado Springs

There are several criteria that can determine your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that does the installation.

Solar Equipment Size

The cost of solar panels varies by thousands of dollars due to a few different factors. One of the main factors is the system size. Solar power systems with better efficiency or power production need better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $2,690. The type of solar panels and equipment you want is another factor that will significantly affect costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to come at a higher price. Further, solar equipment goes beyond just the solar panels themselves. You'll also need to think about the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when looking into a solar system that falls within your budget.

Solar Financing Terms

If paying for a solar system in cash is out of reach, solar loans are an affordable choice because they lower your upfront costs and let you pay for your system over a term of, on average, between five and seven years. You'll have to consider the long-term cost of loans, including the amount of interest you'll pay over the length of the loan. If you're only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the principal cost. Making a larger down payment or finding a solar loan with a low interest rate could reduce your costs considerably.

Solar Panel Installation Company

A final consideration when trying to estimate the cost of solar for your home or business in Colorado Springs is the company you hire to install your PV system. Similar to choosing a company to build a deck or pool, for example, there are plenty of solar installers that offer a range of services at different price points. The company's size sometimes plays the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices due to access to more resources and better pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or discount can bring their pricing down to compete with bigger companies.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $2.80 $11,750 $25,165 8.0 years
8 kW $2.74 $15,365 $33,854 7.8 years
10 kW $2.69 $18,830 $42,694 7.7 years
12 kW $2.64 $22,144 $51,685 7.5 years
14 kW $2.58 $25,308 $60,827 7.3 years
16 kW $2.53 $28,320 $70,119 7.2 years
18 kW $2.47 $31,182 $79,561 7.0 years
20 kW $2.42 $33,894 $89,155 6.9 years

Solar Incentives in Colorado Springs

Name Property Tax Exemption for Residential Renewable Energy Equipment
Website Visit here
More Info Click here

Name Sales and Use Tax Exemption for Renewable Energy Equipment
Incentive Amount 100%
Website Visit here
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Name Eagle County - Energy Smart Colorado Renewable Energy Rebate Program
Website Visit here
More Info Click here

Name City of Boulder - Solar Sales and Use Tax Rebate
Website Visit here
More Info Click here

Name Black Hills Energy - Solar Power Program
Website Visit here
More Info Click here

Name Roaring Fork Valley - Energy Smart Colorado Renewable Energy Rebate Program
Website Visit here
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Name Colorado Springs Utilities - Renewable Energy Rebate Program
Website Visit here
More Info Click here

Name Property Tax Exemption for Community Solar Gardens
Website Visit here
More Info Click here

Name Local Option - Sales and Use Tax Exemption for Renewable Energy Systems
More Info Click here

Name Local Option - Property Tax Exemption for Renewable Energy Systems
More Info Click here

Name Efficiency Works - Residential Energy Efficiency Rebate Program (Offered by 4 Utilities)
Website Visit here
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Name Colorado Springs Utilities - Residential Energy Efficiency Rebate Program
Website Visit here
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Name Black Hills Energy (Electric) - Residential Energy Efficiency Program
Website Visit here
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Name Southeast Colorado Power Association - Energy Efficiency Rebate Program
Website Visit here
More Info Click here

Name Mountain View Electric Association, Inc - Energy Efficiency Rebates Program
Website Visit here
More Info Click here

Name Residential Energy Upgrade (RENU) Loan Program
Incentive Amount $35,000
Website Visit here
More Info Click here

Name Green Colorado Credit Reserve
Incentive Amount $250,000
Website Visit here
More Info Click here

Name Eagle, Garfield, Gunnison, Lake, and Pitkin Counties - Energy Smart Colorado Loan Program
Incentive Amount $25,000
Website Visit here
More Info Click here

Name Residential Renewable Energy Tax Credit
Website Visit here
More Info Click here

How to Save on Solar Panels

There are a lot of solar installers to choose from, all of which offer different warranties, solar panel brands and price points. To help you decide on the right company for you, here are some tips to keep in mind:

  • Reputation: Make sure your solar company has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by past customers and solar experts like EcoWatch.
  • Contract: When reading through your solar company's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios like a system part breaking or if the company goes out of business.
  • Solar Panel Brands: The kind of solar panel you want to install plays a role in which company you should go with, since different companies offer different panels.
  • Installation Process: Make sure you're aligned with the company with regard to how the installation process will go and what you need to do before your solar system is installed, such as updating or replacing your electrical system or roof.

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

The Green Panel

★★★★★
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 Colorado Springs, CO Solar Cost FAQs

How much does it cost to install solar panels in Colorado Springs?

This is a hard question to answer precisely, because the cost depends on many factors. Broadly speaking, it costs about $13,450 for a 5-kW system and $26,900 for a 10-kW system after the ITC is applied. It will be more expensive if you want extra solar equipment or more efficient panels, or if you have above-average energy consumption. Conversely, you can spend less if you opt for a smaller solar panel system or less expensive solar panels.

Is it better to lease or buy solar panels in Colorado Springs?

Leasing solar panels can be an attractive choice, because it usually comes with low or $0 upfront payments. The drawback is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better option if you want to maximize your savings.

Do solar panels increase how much your home is worth?

Buying or financing solar panels for your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Colorado Springs is currently $275,713, which means you can expect about a value of about $11,304 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Colorado Springs is a fruitful investment.

How long do solar panels last in Colorado Springs?

Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is how much energy they produce will have decreased significantly after that point. You can opt to replace them once you've had them for that long or you can keep using them at a lower efficiency.

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.

Company 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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