Cost of solar in Colorado: what it really costs in 2026
Colorado solar costs $2.80–$3.20/watt. Here is the full honest breakdown: gross price, every available incentive, and realistic payback math at current Xcel Energy rates.
Colorado solar installation costs are competitive: $2.80 to $3.20/watt, with a robust installer market on the Front Range keeping prices in check. The combination of competitive prices, Colorado’s exceptional sun resource, and Xcel net metering produces a payback picture that holds up despite the absence of a state income tax credit.
System sizes and costs
- 6 kW: $16,800–$19,200. Produces ~9,000–10,500 kWh/year on the Front Range.
- 8 kW: $22,400–$25,600. Most common size. Produces ~12,000–14,000 kWh/year.
- 10 kW: $28,000–$32,000. For larger homes or EV charging. Produces ~15,000–17,500 kWh/year.
Payback math
An 8 kW system producing 13,000 kWh/year at Xcel’s $0.16/kWh rate offsets $2,080/year. Net cost after sales tax exemption: ~$23,500. Payback: approximately 11 years. Over 25 years: ~$28,500 in net savings. For homeowners who also add EV charging — very common in Colorado — the additional usage justifies a larger system and proportionally improves the annual savings.