All states · Colorado
Updated October 2026 · ranks 15 of 50
Yes, for most households
6 kW system · $16,500 after incentives · $1,627 returned in year one
0 yrs25 yrs
At 9.9 years the system repays itself well within the warranty period of its major components, though the capital is committed for over a decade. For a household likely to move within six years, the effect on resale value matters more than the payback figure.
For most households, yes. 9.9 years falls inside the warranty period of every major component, although the capital is committed for more than a decade.
The case modeled here approximates an average Colorado household on the state average rate of 17.0¢, with an unshaded roof and no financing: $16,500 of capital, $1,627 returned in the first year, and break-even near year 9.9. Above-average consumption, a south-facing roof or a competitive installed price shorten that period; shading, a loan carrying a dealer fee, or a sale within six years lengthen it. Exports earn 17.0¢, close to the retail rate, so daytime occupancy makes little difference to the result.
At 17.0¢ per kilowatt-hour, Colorado pays 3% more for electricity than the United States average of 16.5¢. A high retail rate is the principal driver of a short payback, since each kilowatt-hour generated displaces an expensive one.
A 6 kW array in Colorado generates approximately 9,570 kWh a year, above the national median. Irradiance is the one input that no change in policy can remove.
Colorado operates full-retail net metering. Each exported kilowatt-hour is credited at the same 17.0¢ charged for consumption, so the grid functions as storage and there is no penalty for generating more than is consumed during daylight hours. This is the principal reason payback here is shorter than in states with comparable irradiance.
Colorado offers no state rebate or tax credit at present, so the installed price of $16,500 stands. With Section 25D expired there is no federal credit to deduct either, the first year in over a decade in which that has been the case.
A 6 kW system, the size typical of Colorado households, costs approximately $16,500 installed at $2.75 a watt before deductions. No deduction applies in Colorado: there is no state rebate, no state tax credit, and no federal credit following the expiry of Section 25D on 31 December 2025. Prices vary with roof complexity, equipment selection and local installer demand; quotes $0.40 a watt either side of this figure are common. Smaller systems cost more per watt and larger ones less, although sizing beyond on-site consumption is not penalized, since exports earn 17.0¢.
| System size | 6 kW |
|---|---|
| Annual production | 9,570 kWh |
| Installed cost | $16,500 |
| Incentives | none |
| Net cost | $16,500 |
| Electricity rate | 17.0¢ / kWh |
| Export credit | 17.0¢ / kWh |
| Year-one saving | $1,627 |
| Break-even | 9.9 years |
| 25-year gain | $33,413 |
Of the 50 states published here, Colorado ranks 15th for how quickly a bought system repays itself. Fastest right now: Hawaii, New York, Illinois, Massachusetts. Slowest: South Dakota, Louisiana, North Dakota, Tennessee. Compare them all on the map.
Solar economics change at state lines rather than at county lines, because the export tariff and the netting period do. These states share a border with Colorado, and the figure each produces on the same assumptions.
About $16,500 installed for a 6 kW system at $2.75 a watt. No deduction applies in Colorado: no state rebate, no state credit, and no federal credit following the expiry of Section 25D. Larger systems are not penalized here, since exports earn the full 17.0¢.
Yes, for most households. A 6 kW system breaks even in 9.9 years on the assumptions used here, following the expiry of the 30% federal tax credit on 31 December 2025.
Approximately $1,627 in the first year on a 9,570 kWh system, rising thereafter as Colorado electricity rates increase. Exports are valued the same as self-consumption at 17.0¢, so the figure holds regardless of daytime occupancy.
A 6 kW array is about 14 modules at 430 W and generates 9,570 kWh a year here, which covers a household using roughly that much. Sizing above on-site use is not penalized here, since exports earn 17.0¢. The sizing calculator works it out from a bill.
Yes, for most households. The retail rate here is 17.0¢ against a national average of 16.5¢, exports earn 17.0¢, and a 6 kW system breaks even in 9.9 years. What separates Colorado from states with similar sunshine is the rate and the export tariff, not the weather.
Colorado operates full-retail net metering.
Generation is taken from NREL PVWatts v8 for the largest metropolitan area in Colorado, south-facing at 20°. The retail rate is from the EIA and the export credit from the state's net metering rule. The break-even figure incorporates 0.5% annual panel degradation, 3% annual electricity price growth, $150 a year in maintenance and an inverter replacement in year 12. The federal credit is set to $0 — Section 25D expired 31 December 2025. Credits accumulate across the year, so close to 95% of generation is valued at the full retail rate. Full method and sources. Privacy. Export terms checked against the state source in August 2026.
These are estimates for comparison between states, not quotations. Roof orientation, shading, consumption pattern and installer pricing all affect the result. At least three written quotations are advisable before purchase.