Solar Panel Savings in Denver, CO
Calculate how much you can save with solar panels in Denver, Colorado. Based on 5.9 peak sun hours/day and 14.5¢/kWh average electricity rate.
5.9
Peak Sun Hours/Day
14.5¢
Avg Rate (¢/kWh)
7.7 yr
Payback Period
$26k
25-Year Savings
Denver Solar Overview
Calculate Your Denver Solar Savings
Denver average: $145/mo
South-facing roofs produce the most energy
Add $8,000-$12,000 for whole-home battery backup
Annual Production
kWh/year
Annual Savings
per year
Net System Cost
after 30% ITC
Payback Period
break-even time
25-Year Total Savings
$51,202
Monthly Savings
$125
Federal Tax Credit
$4,968
Cumulative Savings vs System Cost
Cost Breakdown
| Item | Denver | National Avg |
|---|---|---|
| Gross System Cost (6kW) | $16,560 | $17,100 |
| Federal Tax Credit (30%) | -$4,968 | -$5,130 |
| Net System Cost | $11,592 | $11,970 |
| Cost Per Watt | $2.76/W | $2.85/W |
Solar Potential in Denver
Sun Hours vs National Average
Denver gets 31% more sun than the national average.
Climate Advantages
- 272 sunny days per year
- Average temperature: 68.9°F — moderate climate with good solar conditions
- Average roof size: 1,921 sq ft — enough for a 106-panel system
Denver Solar Incentives & Programs
Federal Investment Tax Credit (ITC)
30% of total system cost deducted from federal taxes. For a $16,560 system, that's a $4,968 credit. Valid through 2032.
Colorado State Incentives
Colorado sales tax exemption for solar; Xcel Solar*Rewards program.
Net Metering — Xcel Energy
Xcel Energy offers net metering in Denver. Earn credits for excess solar energy sent to the grid, reducing your electric bill further.
Environmental Impact in Denver
4.3
Tons CO2 Offset/Year
71
Equivalent Trees Planted
1.0
Homes Worth of Energy
Based on 10,337 kWh annual production with a 6kW system. EPA average: 0.417 metric tons CO2 per MWh, 10,632 kWh per US home.
Solar Energy in Denver, Colorado
Denver, Colorado receives an average of 5.9 peak sun hours per day, placing it among the best cities in the country for solar energy production. With electricity rates averaging 14.5¢ per kWh from Xcel Energy, near the national average, solar provides competitive returns on investment.
A typical 6kW solar system in Denver produces approximately 10,337 kWh per year, saving homeowners an estimated $1,499 annually. The system pays for itself in about 7.7 years, after which you enjoy essentially free electricity for the remaining 17+ years of the system's warranty life.
Denver has a solar penetration rate of 9.4% — showing growing adoption of residential solar, with significant room for expansion. The cost of living index of 104 (national average: 100) is near the national average.
Other Cities in Colorado
Arvada, CO
Aurora, CO
Boulder, CO
Colorado Springs, CO
Fort Collins, CO
Greeley, CO
Lakewood, CO
Pueblo, CO
Thornton, CO
Westminster, CO
Frequently Asked Questions
How much do solar panels cost in Denver, CO?
The average cost of a 6kW solar panel system in Denver is approximately $16,560 before incentives ($2.76/watt). After the 30% federal Investment Tax Credit, the net cost is about $11,592. Colorado sales tax exemption for solar; Xcel Solar*Rewards program.
How many peak sun hours does Denver get?
Denver, CO receives an average of 5.9 peak sun hours per day and approximately 272 sunny days per year. This is above the national average of 4.5 hours, making it an excellent location for solar energy.
What is the solar payback period in Denver?
The average solar payback period in Denver is approximately 7.7 years. After payback, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty. Over 25 years, total savings can reach $25,883.
Does Denver have net metering?
Yes, Denver has access to net metering through Xcel Energy. This allows you to earn credits for excess solar energy sent to the grid, significantly improving your solar investment returns.
Is solar worth it in Denver, CO?
Absolutely. With a 7.7-year payback period and $25,883 in 25-year savings, solar is an excellent investment in Denver. The 30% federal tax credit and local incentives help make solar financially attractive.