The Real Deal with Solar and Battery Rebates
Solar rebates have been around for a while now but they just keep getting better! That’s right – as of Jan 1, 2023, solar rebates have increased and will stay at their current level through 2032. On top of that, there are additional rebates for battery installations to back up your solar array. Here’s a breakdown of what you might be eligible for:
Solar
Federal Tax Credit
There’s been a federal tax credit, the Residential Clean Energy Credit, on solar and solar battery projects since 2006. In 2023, this tax credit rose to 30% of the cost of your solar project after being at 26% for the past several years.
How it works:
Complete your solar project and pay your full invoice. You can enter 30% of that invoice amount on IRS Form 5695 the next time you file your taxes. If you have income and therefore owe taxes on that income, this amount will be reduced from the total taxes you owe. If income taxes are regularly taken out of your paycheck, you will likely receive a tax refund resulting from this credit.
City of Boulder Sales Tax Rebate
If you live in the City of Boulder, you pay a 3.86% sales tax on almost everything you buy within city limits, including your home solar panels! You can get a rebate for a portion of the sales & use tax you paid.
How it works:
After your installation is complete, you can fill out and send in this form: https://bouldercolorado.gov/media/3905/
Additionally, low income households are eligible for grants up to $8,000 on a rolling basis on solar projects. Details can be found here: https://bouldercolorado.gov/services/solar-grants
Boulder County
Residents in Boulder County can get up to $200 in cash rebates for a solar PV installation.
How it works:
You must apply for this BEFORE your solar array is installed. Apply here: https://energysmartyes.com/rebates-financing/
City of Denver
If you already have a heat pump or heat pump water heater in your home (we can install these!) you can receive a rebate of $1 per watt, up to $4,000, for your solar project.
How it works:
Your contractor will need to be registered with the City of Denver rebates program (we are!) and will apply for your rebates on your behalf.
City of Fort Collins
Customers of City of Fort Collins Utilities can receive a cash rebate for $250/kW up to $1,000 (note: an average residential solar array size is 8 kW) on a solar installation.
How it works:
This all needs to go through a short list of approved contractors. Guess what – we’re on the list! Ask us to apply for this rebate on your behalf and we will send you a form to sign. After your solar installation, we will complete the application and you can expect to receive a check in 8 to 10 weeks.
Battery Storage
Federal Tax Credit
The same 30% federal tax credit for solar includes battery installations as well.
How it works:
Complete your solar & battery project and pay your full invoice. You can enter 30% of that invoice amount on IRS Form 5695 the next time you file your taxes. If you have income and therefore owe taxes on that income, this amount will be reduced from the total taxes you owe. If income taxes are regularly taken out of your paycheck, you will likely receive a tax refund resulting from this credit.
Colorado
Colorado also created a new tax credit for battery installations, starting January 1st 2023, for 10% of the cost of battery equipment.
How it works:
Colorado has not yet shared the details of how to get this credit and we’re all waiting in suspense. Our best guess is that this will work very similarly to the federal tax credit. Complete your battery project and pay your full invoice. Ask your contractor to break out your invoice by labor and materials. Take 10% of the materials cost, and enter that amount into your Colorado tax return. If you have income in Colorado and therefore owe taxes on that income, this amount will be reduced from the total taxes you owe.
City of Denver
City of Denver residents are eligible for a cash rebate for 80% of the cost of your battery installation, up to $500. This cap increases up to $2,750 if you’re also installing or already have heat pumps (we do those, too!).
How it works:
Your contractor will need to be registered with the City of Denver rebates program (we are!) and will apply for your rebates on your behalf.
Xcel Energy
If you live in Denver or Boulder, most likely your utility provider is Xcel Energy. They are also offering an upfront cash rebate on interconnecting your battery with the grid to the tune of $500 per kW of battery storage capacity. It’s a pretty cool idea: during periods of peak power demand (like when all the ACs are running in the middle of a hot day), Xcel can tap into the stored energy in your battery to reduce stress on the grid. They’ll never take more than 60% of your battery capacity. Science!
How it works:
Your solar battery installer (hopefully us) will submit an interconnection application request on your behalf for the Renewable Battery Connect program. We’ll guide you through the process from there.
Wow, that’s a lot. We know this is complicated and we’re happy to help! Please reach out to sales@solarips.com to get your rebate questions answered and your home electrification project started!