Solar payback in Colorado (2026)
In Colorado, a typical 8 kW home-solar system costing about $24,000 ($3/W, no federal credit in 2026) has an estimated simple payback of 9.9 years and roughly $49,962 in net savings over 25 years. This assumes an average rate of 16.74¢/kWh and ~1,620 kWh produced per kW each year.
Source: EIA & NREL. Data as of March–June 2026.
High-altitude clear skies give Colorado strong production, and the state mandates full retail net metering for major utilities, supporting a reasonable payback despite mid-level rates.
Colorado solar payback at a glance
| Metric | Value (CO) |
|---|---|
| Average residential rate | 16.74 ¢/kWh |
| Peak sun hours (daily avg) | 5.7 h |
| Production factor | 1,620 kWh/kW/yr |
| 8 kW system annual output | 12,960 kWh |
| Est. up-front cost (8 kW @ $3/W) | $24,000 |
| Year-1 bill savings | $2,170 |
| Estimated simple payback | 9.9 years |
| Estimated 25-year net savings | $49,962 |
Source: EIA Electric Power Monthly (Mar 2026) & NREL PVWatts. Data as of June 2026.
Run your own numbers for Colorado
The calculator below is pre-filled with Colorado's electricity rate and production factor. Change the system size, cost per watt or escalation to match your own quote.
Figures are planning estimates that ignore financing, inverter replacement and maintenance. They assume cash purchase, 3%/yr rate escalation and 0.5%/yr panel degradation. See the methodology and disclaimer.
How Colorado compares
Browse all states to compare payback, or read the guides: Is solar worth it in 2026 without the federal credit? and solar payback period explained.
Frequently asked questions
What is the solar payback period in Colorado?
For a typical 8 kW system costing about $24,000 ($3/W) with no federal tax credit in 2026, the estimated simple payback in Colorado is roughly 9.9 years, based on an average residential rate of 16.74¢/kWh and a production factor of about 1,620 kWh per kW per year. Your actual payback depends on your quote, usage and net-metering rules.
Is solar worth it in Colorado now that the federal tax credit has expired?
The 30% federal residential credit (Section 25D) expired on December 31, 2025, which raises the up-front cost of 2026 installs by about 30%. High-altitude clear skies give Colorado strong production, and the state mandates full retail net metering for major utilities, supporting a reasonable payback despite mid-level rates.
How much electricity does an 8 kW system produce in Colorado?
About 12,960 kWh in year one (8 kW × 1,620 kWh/kW), declining slowly as panels degrade ~0.5% per year.
Other states
Last updated: 2026-06-14