With over 300 days of sunshine per year, Colorado remains one of the nation's premier destinations for solar energy. The state now ranks 10th nationally for total solar generation, having achieved a nearly 1,000% increase in solar output since 2015. Combined with strong wind generation, Colorado placed 7th nationally for electricity produced from wind, solar, and geothermal in 2024. Renewable sources now account for 43% of Colorado's total in-state electricity generation — a record high — a dramatic shift from a decade ago when coal dominated at roughly 60%.
Colorado was one of the first states in the U.S. to establish a Renewable Energy Standard, which requires investor-owned utilities to source 30% of their power from renewables, with a portion specifically from distributed generation sources like homes and small businesses. More recently, legislation passed in 2024 modernized the distribution system to facilitate solar and storage interconnection and expand inclusive community solar adoption.
Colorado's solar industry has grown enormously. Nearly 40% of the state's 4,100+ megawatts of installed capacity was added in 2023 alone, with thousands more megawatts projected in the coming years. Large utility-scale installations now anchor the grid alongside a booming residential market. A growing number of homeowners are going solar with no upfront costs through power purchase agreements or leases, and there are plenty of qualified solar installers in the state who can walk through options and pricing before any commitment.
Community solar gardens remain one of Colorado's most innovative offerings, allowing renters and homeowners who can't install rooftop panels to subscribe to a local array and offset their electricity costs. The state also has strong net metering rules and interconnection standards that make connecting a home system to the grid straightforward.
On the incentives front, the landscape has shifted. Federal residential solar tax credits expired at the end of 2025 following legislation signed in July 2025. However, Colorado's own incentives remain strong. The state offers a property tax exemption for residential renewable energy equipment and a sales and use tax exemption on solar equipment purchases. Xcel Energy's Solar*Rewards program continues to offer rebates targeting income-qualified customers, and Black Hills Energy provides performance-based incentives for PV systems. The Colorado RENU Loan program offers low-interest, no-money-down financing for solar installations up to $75,000 with terms up to 20 years.
Local programs add further options. Denver offers a solar rebate of up to $8,000 for income-qualified families, as well as funding for nonprofits to cover up to 100% of solar installation costs. Boulder has its own solar grant program and a solar sales and use tax rebate. Holy Cross Energy customers can access a renewable energy rebate, and residents in Eagle County can take advantage of the Walking Mountains Science Center solar PV rebate.
Colorado has also made significant strides in reducing the "soft costs" of going solar. Denver was the first city in the nation to be designated a "Solar Friendly Community" thanks to its streamlined permitting process. The state's solar and wind easements law — dating back to 1979 — voids any covenants or restrictions that would prohibit solar installations.
Colorado is also home to the National Renewable Energy Laboratory, a robust network of solar training programs, and a growing manufacturing sector. With strong policy, expanding community solar access, and a rich landscape of local utility incentives, Colorado continues to be one of the most solar-forward states in the country.