Solar Panel Cost Guide in Denver, CO (2023 Update)
- Denver Solar Installation Cost: $9,745
- 25-Year Savings: $16,082
- Payback Period: 9.4 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Denver
See how much it might cost to go solar in Denver.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Denver, the typical cost of solar panels is 2.69 per watt. 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 around $9,754, or $13,948 before the federal solar tax credit of 30% is applied.
Remember that the numbers above are only averages. The price you'll pay for solar will differ based on your household energy use, the type of equipment you want, your solar contractor and more. But, once you've paid the upfront cost of installation, the savings for most homeowners is quite rewarding, with a net average savings of about $19,000 over 20 years on power bills.
To get a free estimate from a highly rated solar installer in Denver, you can click the button below.
Solar savings over time in Denver
| Year | Return on Investment |
|---|---|
| 1 years | $-9,659 |
| 3 years | $-9,486 |
| 5 years | $-9,314 |
| 7 years | $-9,142 |
| 9 years | $-8,970 |
| 11 years | $-8,798 |
| 13 years | $-8,625 |
| 15 years | $-8,453 |
| 17 years | $-8,281 |
| 19 years | $-8,109 |
| 21 years | $-7,937 |
| 23 years | $-7,765 |
| 25 years | $-7,592 |
Top Solar Installers in Denver
Installing solar panels on your own can be a time-consuming undertaking, which is why using a solar installer is a good option for many homeowners. The expertise that solar companies provide can be invaluable as well, especially if you aren't sure what kind of solar equipment would be right for your home.
You can work with a local solar installer to get a free quote on how much your investment in solar could cost for your home. Here are some nearby:
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
Cost is typically one of the most important factors for homeowners considering investing in solar. There are a few major factors that will push your cost above or below the average in Denver: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
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 nearly $2,690. The brand and type of equipment you choose for your solar system can raise or lower the price quite significantly. If you prefer a brand name like Tesla or SunPower, these often have a higher price tag than other brands. Efficiency also matters. Whether you're opting for high efficiency because you have limited roof space or just want maximum energy production, you can expect a higher equipment cost, but this can typically lead to more savings over time. Also, if you want add-ons like an electric vehicle charger or solar batteries, this will also increase the cost.
Solar Financing Terms
Many homeowners find the average cost of solar in Denver to be prohibitively costly, even if the investment pays off over time. Thankfully, nearly every solar company in the area provides financing options. Solar loans substantially decrease upfront costs in most cases, but they also result in higher prices over time because of interest. You'll have to consider the long-term cost of loans, 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
Lastly, the company you opt for to install your solar panels can impact how much you pay. Denver's solar companies all have different labor costs and add varying upcharges to equipment. Additionally, some companies in Denver have more knowledge about local solar incentives and can help you take advantage of additional rebates or tax exemptions. However, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you more money in the long run.
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
Since the model of solar panels and the company you choose has an impact on your costs and your system's durability and efficiency, it's important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:
- 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.
- Contract: Although reading through a contract can take a lot of time, it's important to do it thoroughly so you can be sure you understand how much the equipment and services will cost and how part repairs and replacements will be handled.
- Solar Panel Brands: The brand of solar panel you'd like plays a part in which company you should choose, since different companies have access to different panels.
- Reputation: Make sure your solar company has a good reputation by verifying it has certifications and licenses, checking its work history and reading reviews by past customers and solar experts like the EcoWatch team.
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 certain factors such as the model of solar panels you want, what size system you need and how much energy you consume.
Can you get solar panels for free in Denver?
You can't get solar panels for free in Denver. However, you may still be able to get them on a lower budget. You can lease solar panels for a low upfront cost or, if you'd rather own your solar panels, you can finance them with a solar loan.
How will having solar panels impact the value of my home?
Solar panels can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Denver is currently $364,129, so you can look forward to a value of about $14,929 more than houses without a solar system. The exact figures will vary, but most experts agree that installing solar panels in Denver is a worthwhile investment.
How long do solar panels last in Denver?
Although 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 their energy production will have decreased significantly after that point. You can opt to replace them after having 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.