Saving The Most Money With Solar Energy Panels in Colorado Springs
Are you lucky enough to call Colorado Springs home? It’s a beautiful city surrounded by one of the most iconic mountain ranges in the world.
If you are considering installing solar energy panels at your home, you can feel good knowing that you are doing your part to protect the environment. Global warming is a threat, particularly to places like the Rockies that depend on cold winters.
But do solar panels actually save you money in Colorado Springs? Or are they just an expensive investment to help the environment?
We dive into the details below, so keep reading to find out.
Do Solar Panels Work In Colorado?
Some people worry that Colorado isn’t a good state for solar energy, given that it’s not always sunny like the Southwest is. But solar power is actually perfect for those in Colorado. Why is that?
For starters, Colorado is an environmental state. A large population of residents naturally cares for the environment and wants to protect it. Thanks to Colorado’s incredible landscapes, it gives residents something worth fighting for.
The Colorado government has also committed to transition the state to be 100% dependent on renewable energy by 2040. Global warming is already negatively affecting Colorado’s alpine environment and the communities and industries that depend on it.
And even those living at higher elevations, such as Denver or Colorado Springs, get enough sun throughout the year to generate enough electricity to greatly reduce or replace their electricity bills.
How Solar Panels Save You Money
Solar panels save you money by reducing, or completely replacing your electricity bill. In Denver, for example, the average electricity bill is $78 per month or $936 per year.
In the summer when households receive more sun on a daily and monthly basis, you may generate enough solar power every day to replace your need for electricity.
In other seasons when cloud coverage is more constant and daylight hours go down, you won’t generate as much solar power. However, you will still generate some.
Installing solar energy storage, such as a battery, allows you to store excess energy and use it when your home isn’t generating as much solar power, such as at night or on cloudy days.
Overall, you can expect your average annual electricity cost to be cut in half. These savings will increase over the years as electricity costs in Colorado are expected to rise. And the average payback period in Colorado is only 10 or 11 years.
How to Maximize Solar Energy Efficiency
There are many steps you can take to maximize your home’s ability to generate solar energy. Solar companies will recommend the best panels, size, and installation location based on these factors.
Working with a professional installer is the best way to experience true savings. While it costs much more upfront to have panels professionally installed, they will ensure they installed properly and configured with your current utilities for the most savings.
Your solar energy configuration matters. Generally, you want to install solar panels on the south-facing portion of your roof. This will give you the highest amount of direct sunlight throughout the year.
You can also increase efficiency by installing higher-quality panels. Depending on your budget, different types of panels are available, with the main difference being how efficient they are and how fast or slow they degrade and lose efficiency.
How to Save On Solar Energy Panels
When it comes to solar power, we live in an exciting time. The cost of solar panels has decreased more than 80% over the last 10 years alone.
On top of that, there are currently many programs available today to help you save money on your new solar panel installation. Here’s what you need to know.
Federal Solar Tax Credit
The federal government has been offering a large tax credit for residential and commercial solar installations for the last 15 years. However, the federal solar investment tax credit, or ITC, isn’t going to last much longer.
In 2021 and 2022, you can receive a 26% tax credit on your total solar panel installation cost. New installations in 2023 will receive a 22% tax credit. This is the last year residential installations can receive the credit.
And in 2024, new commercial installations can receive a 10% tax credit. If your installation was going to cost $12,000, the ITC would save you over $3,000. If you are considering solar power, be sure to take advantage of this credit before it’s gone.
Colorado Incentives
Colorado residents can enjoy a number of other savings programs when it comes to solar power. For starters, there won’t be any sales or use tax on the purchase of solar panels. With a state sales tax of 2.9%, a $12,000 installation will save $348 in taxes.
Live in Colorado Springs? Colorado Springs Utilities customers can enjoy a $0.10 per watt rebate, which can really add up to savings.
Net Metering
Colorado has a statewide net metering program available. When your solar panels generate more than enough electricity for your home’s use at a given time, the excess can be sent back through the utility grid.
Your utility company will provide you credits for any electricity you send to them. Then, when your home isn’t producing as much solar power, such as cloudier days or in the winter, you’ll start drawing electricity from the utility provider again.
Instead of paying for it, you’ll first use up any credits that have been compiling. At the end of the year, if you have any unused credits, you may receive a cash payment for the electricity you sold to your utility company.
Net metering is one of the most powerful savings programs available and functions on an ongoing basis. The savings really do add up.
Saving Money and the Environment
It’s easy to see how incredible solar energy panels are. They help you save money in a variety of ways, while also saving the environment. In particular, we are working to save the incredible alpine mountains that we know and love in Colorado.
Considering the federal tax credit available for just 2 more years now is the best time to install solar panels at your home. Don’t miss out on the incredible savings.
Looking for other ways to save money and live more independently? Be sure to visit the rest of our blog today.
