Solar Panel Cost Guide in Colorado Springs, CO (Mar 2023)
- Colorado Springs Solar Installation Cost: $9,453
- 25-Year Savings: $21,419
- Payback Period: 7.7 Years
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Updated March 14, 2023
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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 2.69 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 $13,518 before 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 Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries (coming 2022)
Best Technology
Tesla Energy
- 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
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, which is measured in kilowatts (kW). 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 |
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 Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries (coming 2022)
Best Technology
Tesla Energy
- 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
What is the average cost of installing solar panels in Colorado Springs?
This is a hard question to answer exactly, because the cost depends on a few different factors. Generally speaking, it costs about $13,450 for a 5-kW system and $26,900 for a 10-kW system after the ITC is applied. You can expect to pay more if you want extra solar equipment or more efficient panels, or if you have above-average energy consumption. On the other hand, you can spend less if you choose a smaller solar panel system or less efficient solar panels.
Is cost the most important consideration when buying solar panels?
The initial cost is a key factor to consider, but whether it's the most important for you depends on your goals for going solar. In cities where rooftop space is limited, efficiency can be more important than the cost. Other factors that are important to be mindful of are the quality and durability of your solar panels.
Can solar panels completely eradicate my power bills?
Solar panels can potentially eliminate your electricity bills depending on where you're located and the efficiency of your system. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $1,230.49 per year.
How often do you have to replace solar panels?
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 replace them once you've had them for that long or you can continue to use 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.