Solar incentives and tax credits available in Arvada, CO

Solar Incentives in Arvada, CO

Complete guide to solar tax credits, rebates, and incentive programs available to Arvada homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Arvada homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Arvada, CO.

Colorado State Solar Incentives for Arvada Homeowners

Sales Tax Exemption for Renewable Energy

Sales Tax

Colorado exempts renewable energy equipment from state sales and use tax.

100% state sales tax exemption

Property Tax Exemption

Property Tax

The value added by a solar installation is exempt from property tax assessment in Colorado.

100% property tax exemption on added solar value

Xcel Energy Solar Rewards

Rebate

Xcel Energy customers can earn performance-based incentives for solar energy produced.

$0.02-$0.05/kWh produced for 20 years

Colorado RENU Loan

Loan

Low-interest loans for residential renewable energy and energy efficiency projects.

Loans up to $50,000 at below-market rates

Net Metering in Arvada, CO

Available

Colorado requires investor-owned utilities to offer net metering. Xcel Energy and Black Hills Energy provide net metering for residential solar customers.

Solar Renewable Energy Credits (SRECs) in Arvada

Not Available

Colorado's Renewable Energy Standard includes a distributed generation carve-out, but the state does not have a traditional SREC trading market.

Tax Exemptions in Arvada

Property Tax Exemption
Solar systems in Arvada are exempt from property tax assessment increases
Sales Tax Exemption
Solar equipment purchases are exempt from state sales tax

How to Claim Solar Incentives in Arvada

  1. Install your solar system: Work with a qualified Arvada solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your Colorado energy office or local Arvada utility to apply for available incentives.
  4. Set up net metering: Contact your utility in Arvada to set up net metering and start earning credits.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Arvada, CO

Arvada homeowners can take advantage of the 30% federal solar tax credit, plus 4 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Arvada homeowners approximately $5.2k on a typical system. Combined with Colorado state programs, total savings over 25 years can reach $37k or more.

Colorado requires investor-owned utilities to offer net metering. Xcel Energy and Black Hills Energy provide net metering for residential solar customers.

To claim the 30% federal ITC, Arvada homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
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