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#12 Solar ROI State

Solar Panel ROI in Colorado (CO)

Colorado averages 1,550 kWh per installed kW per year. At $14.2¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $11,378.

$13,720
System Cost (After Credits)
$11,378
25-Year NPV
9 years
Payback Period
$0.131/kWh
Solar LCOE

Solar Cost Breakdown in Colorado

7 kW system (2.80/W)$19,600
Federal ITC (30%)-$5,880
Net Cost$13,720

Solar Production in Colorado

Colorado receives an average of 1,550 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 10,850 kWh in year one, declining by 0.5% annually due to panel degradation.

At Colorado's average residential rate of $14.2¢/kWh with 4% annual escalation, first-year savings are $1,541. The solar LCOE of $0.131/kWh is 8% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Colorado

1:1 net metering mandated for IOUs, with annual true-up

Solar by Utility in Colorado

Xcel Energy Colorado

Avg Rate: $14.2¢/kWh
Structure: TOU
Peak: $19.5¢/kWh / Off-Peak: $9.8¢/kWh
View analysis ›

Black Hills Energy Colorado

Avg Rate: $13.5¢/kWh
Structure: FLAT
View analysis ›

Solar FAQ for Colorado

How much does solar cost in Colorado?
A typical 7 kW residential solar system in Colorado costs $19,600 before incentives. After the 30% federal ITC, the net cost drops to $13,720.
What is the solar payback period in Colorado?
Based on the average CO utility rate of $14.2¢/kWh and local solar irradiance of 1,550 kWh/kW/year, a 7 kW system typically pays for itself in 9 years. The 25-year NPV is $11,378.
Does Colorado have net metering?
1:1 net metering mandated for IOUs, with annual true-up
What is the LCOE of solar in Colorado?
The levelized cost of solar energy in Colorado is approximately $0.131/kWh, compared to the current average utility rate of $14.2¢/kWh. Solar electricity costs 8% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Colorado?
Colorado receives approximately 1,550 kWh of solar energy per installed kW per year. A 7 kW system produces about 10,850 kWh in its first year, enough to offset 103% of the average U.S. household's electricity consumption.

Compare Options in Colorado

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Solar ROI in Similar States

Massachusetts

NPV: $27,033 · Payback: 6yr
Rate: $28.2¢/kWh · #4 ranked

Arizona

NPV: $14,954 · Payback: 8yr
Rate: $13.2¢/kWh · #5 ranked

Nevada

NPV: $12,806 · Payback: 8yr
Rate: $13.2¢/kWh · #6 ranked

Connecticut

NPV: $24,321 · Payback: 7yr
Rate: $27.2¢/kWh · #7 ranked

New Jersey

NPV: $12,340 · Payback: 9yr
Rate: $18.2¢/kWh · #8 ranked

New Mexico

NPV: $15,834 · Payback: 7yr
Rate: $13.8¢/kWh · #9 ranked

Get Your Colorado Solar Analysis

These are averages. Your ROI depends on your specific utility, consumption, roof, and system size. Run a personalized 25-year NPV analysis — free.

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