Thinking about switching to solar energy for your home in Colorado? The city of Denver is lit up by over 300 days of abundant sunshine each year, making it an excellent region for solar energy. As energy costs continue to rise, it’s only fitting that more Denver homeowners are turning to solar to save money and reduce their carbon footprint. The question is: what is the solar panel cost in Denver and surrounding regions in Colorado? In this blog post, we’re breaking down key factors that impact your solar cost, money-saving tax credits, and how much solar panels cost for your home in Denver.
Factors That Impact Solar Panel Cost
At Blu Solar, our pricing is consistent for every client. We believe in trust, transparency, and working towards a cleaner, greener future ethically. When it comes to your unique solar panel cost, it is based on how many solar panels are needed to power your home.
Just think – a 1,500 square foot home will require less energy and fewer solar panels than a 4,000 square foot home.
No two solar systems are exactly the same, and your total solar setup price depends on these key factors:
Energy Usage
The more electricity your household uses, the bigger your solar system will need to be and the more panels you’ll need to keep up with your energy usage.
Roof Characteristics
The amount of sunlight your roof gets, its slope, and the amount of shading it gets from trees or nearby buildings impacts the installation complexity and overall cost.
Additionally, if your roof needs any repairs or special mounting equipment to install your solar panels, that can increase your costs as well. Put simply: the steeper, more shaded, and more irregular the roof, the more it will cost.
Sunlight Access
The amount of sunlight available in your area and the orientation of your roof is a huge factor in how much your system will cost. If you need to use special mounts to achieve optimal sunlight access or work around shading, it will add to your total cost. Luckily, those in Colorado have abundant sunshine, which is a plus!
Panel Choice
Higher-efficiency solar panels and premium brands may cost more upfront, but they can increase your long-term savings. Learn more about the best solar panel brands here.
Solar Panel Cost in Denver
In 2025, the average cost of a standard residential solar energy system in Denver is around $29,360 before tax credits or incentives.
We get it – this price is intimidating and can cause sticker shock.
But don’t let that number scare you – federal tax credits and local programs can dramatically reduce your out-of-pocket expenses.
Federal Solar Tax Credit (ITC)
The Federal Solar Tax Credit covers 30% of your installation costs, which can potentially reduce your price to about $20,552.
Colorado Incentives
While Colorado doesn’t have a state solar tax credit, some utility companies and municipalities offer additional rebates or performance-based incentives. When working with us, these are incentives that we’ll look into and handle for you.
Energy Savings & Increased Home Value
Denver homeowners typically break-even on their solar system investment within 6-8 years, which is really efficient! After this period of time, most households save $1,200-$1,500 on energy costs annually. We’ll take that!
Not only does solar energy reduce your monthly utility bills and compound your savings over time, but it also increases the value of your home, which is a big plus for homeowners, especially if they know they’ll be selling in the future.
Average Solar Panel Cost in Colorado
The size of your solar panel system (AKA – how much energy you’ll need) is measured in watts. In Denver, we charge $4.00 per watt installed for our Blu Solar systems.
Here’s a quick breakdown of estimated costs in 2025 for common solar system sizes in Denver:
Financing Options for Solar Energy Systems
Investing in solar energy can be overwhelming, but you don’t have to buy your system outright to start saving. There are several financing options for home solar energy systems.
Many Denver homeowners finance their solar systems in one of these three ways:
Outright Purchase
Paying for the system upfront in order to gain full ownership right away is more costly in the beginning, but it maximizes the long-term savings.
Solar Loans
Financing your solar system over time with monthly payments is often more doable for homeowners. There are often low interest rates available for these types of loans, making them a viable option.
Leasing
Some companies offer solar leasing options, where you can pay for the energy produced, not the panels and system themselves. This is a great way to lower initial costs, but it’s important to note that you won’t have ownership of the system, so your long-term savings may be less.
What Are The Long-Term Savings & ROI On Solar Energy?
Installing solar panels is a long-term investment that involves some upfront costs. Rest assured though, you’ll see a positive return on your investment over time.
When you choose to install a home solar energy system, you’ll have the upfront costs of the solar panels and equipment, such as inverters, mounting systems, etc. You’ll also have to pay for professional installation to ensure the system is installed effectively and safely while maximizing its efficiency.
Over the course of the solar system’s 25+ year lifespan, you could save tens of thousands of dollars on utility bills.
Paired with the increase in home value, that’s some serious ROI!
Go Solar In Denver Today!
Between Colorado’s sunny climate, federal tax credits and financing options, and long-term savings, going solar is an excellent option for Denver homeowners! Not only is it a smart financial and environmental choice, but with the right incentives and financing options, it can be more affordable than you think! Plus, it will offer you real value for years to come.
Visit our website today to request a personalized solar estimate based on your home’s size and energy needs. We can’t wait to help you save energy, money, and the planet!
