Updated: Apr 28, 2020
For the past ten years, the rapid expansion of solar power in Colorado and Wyoming can be largely attributed to the Federal Tax Credit. Originally created in 2005, the Solar Investment Tax Incentive (ITC) allows taxpayers to deduct 30% of the total cost of residential or commercial solar panel systems to be installed. So, if the total cost of purchasing, permitting, and installing your solar panels is $10,000, you can claim $3,000 of that back as a tax credit.
As illustrated above, the ITC will be decreasing over the next few years. Residential systems installed in 2020 are eligible for a 26% tax credit and those installed in 2021 will be eligible for a 22% tax credit. Starting in 2022, only commercial solar panel systems will be eligible for a 10% tax credit.
The Federal Tax Credit can be claimed in Colorado or Wyoming if:
You are a taxpayer and own the property where the system will be installed
You own your solar panels (see: owning vs. leasing solar panels)
Your solar panels have been installed and are generating power
As one of the top solar companies in Denver and Cheyenne, Apollo Energy works to ensure that all of its customers receive the benefits from investing in their electricity with a solar panel system. With the federal tax incentive still available, and the steady rising rates of utilities, now is truly the best time to explore your home's solar potential.