Solar Panel Cost Guide in Denver, CO (2023 Update)
- Denver Solar Installation Cost: $9,754
- 25-Year Savings: $16,073
- Payback Period: 9.4 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Denver
We break down average solar pricing in Denver.
Although the national average of solar panels is $2.66 per watt, solar panels in Denver typically cost about 2.69. To cover the typical energy usage of the average home in Denver, most homeowners require a 5.2-kilowatt system. Using the figure above, a solar installation costs about $9,754, or $13,948 before the federal solar tax credit of 30% is applied.
Keep in mind that the figures above are only estimates based on the average energy use of Denver homeowners. The price of a solar system for your home may look different depending on factors unique to your situation, like your household energy use and solar contractor. Many homeowners find installing solar panels is a rewarding investment. The average homeowner in Denver can save around $19,000 on their energy bills over 20 years.
For a customized quote from a local solar installer that has been pre-vetted by EcoWatch, click the button below.
Solar savings over time in Denver
| Year | Return on Investment |
|---|---|
| 1 years | $-8,721 |
| 3 years | $-6,655 |
| 5 years | $-4,589 |
| 7 years | $-2,522 |
| 9 years | $-456 |
| 11 years | $1,610 |
| 13 years | $3,676 |
| 15 years | $5,742 |
| 17 years | $7,808 |
| 19 years | $9,874 |
| 21 years | $11,941 |
| 23 years | $14,007 |
| 25 years | $16,073 |
Top Solar Installers in Denver
Many homeowners decide to hire a solar panel installer since installing solar panels on your own can be hard. Plus, if you're unsure what brand of solar panels and equipment you need, a solar expert can help you figure that out after a site survey and consultation.
There are various licensed solar professionals that can help you install your solar panels. Here are our suggestions:
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
See all of the solar companies in Denver
Factors that Affect Solar Panel Costs in Denver
There are a number of criteria that can affect your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that installs your solar panels.
Solar Equipment
The size of the solar energy system you need, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, your total will most likely increase by around $2,690. Some solar brands — like Maxeon from SunPower — cost more upfront but also tend to offer higher efficiency. In a city like Denver, where sunlight is abundant, efficiency can quickly pay off. Plus, if you have a small roof or limited space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
Solar panels can save you money on energy bills over many years, but they can also be a significant investment. That's why many Denver homeowners opt to finance their solar panel systems to make going solar more affordable. You'll have to consider the long-term cost of financing options, including the total interest you'll pay over the length of the loan. If you can only get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or securing a solar loan with a low interest rate could reduce your costs considerably.
Solar Panel Installation Company
The solar installer you choose to handle your switch to renewable energy can have an effect on your total costs. There are about 3 solar installation companies in Denver, and each can charge varying amounts for labor and equipment. Larger national companies usually have lower costs, but some local companies compete with them by offering sales and discounts. While the smaller companies might not have specific equipment options like Tesla Powerwall batteries or extra services like electric vehicle charger installation, they might be cheaper overall.
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 | $18,194 | 9.8 years |
| 8 kW | $2.74 | $15,365 | $24,559 | 9.6 years |
| 10 kW | $2.69 | $18,830 | $31,076 | 9.4 years |
| 12 kW | $2.64 | $22,144 | $37,743 | 9.2 years |
| 14 kW | $2.58 | $25,308 | $44,561 | 9.1 years |
| 16 kW | $2.53 | $28,320 | $51,529 | 8.9 years |
| 18 kW | $2.47 | $31,182 | $58,648 | 8.7 years |
| 20 kW | $2.42 | $33,894 | $65,918 | 8.5 years |
How to Save on Solar Panels
The company that does your solar system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Since selecting a company can be a challenge, we have some tips to help you, such as:
- Reputation: Solar panel companies that have great reviews from their customers and that have been operating for many years in most cases provide quality solar panel installation and expertise.
- Contract: Before signing a contract with a solar installer, be sure to look it over fully so you understand the terms. Also, ask questions if you aren't sure about some of the terms, such as what to do if a part breaks or malfunctions and what services you can expect from them.
- Solar Panel Brands: The brand of solar panel you need plays a role in which installer you should go with, since different companies provide different panels.
- Warranty: A high-quality company stands out from other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
EcoWatch's Denver, CO Solar Cost FAQs
What is the average cost of installing solar panels in Denver?
The average cost of solar panels in Denver is about $13,450 for a 5-kW system and $26,900 for a 10-kW system before the ITC, but the real cost will depend on things like the type of solar panels you want, what size system you need and how much energy you consume.
Should I lease or buy solar panels in Denver?
Leasing solar panels can be an option if you can't afford to pay upfront or get a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your property value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most bang for your buck from going solar.
Do solar panels increase the value of your home?
Solar panels can increase your property's value considerably as long as you buy or finance your panels and don't go for a solar lease or power purchase agreement (PPA). According to research done by Zillow, the average home value increases by about 4.1% after installing a solar system."
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 stop working completely at that time. What this means is their energy production will have decreased significantly after that point. You can opt to 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.