Cost and Investment of Solar in Colorado Part I

Colorado boasts over 300 days yearly of sunshine. The state has an independent spirit and people are extending that spirit into going solar. That is why we picked Denver Colorado for our next hypothetical home that needs panels. 

Averages in Denver

To be realistic, we use averages. The average cost for power in Denver is about $118 a month. We choose a residence in Denver that already has solar panels on it. The home is medium in size, and a family of four live there.  

The place has air conditioning that’s used in the summer and a lot of heat in the winter. The family of four don’t have a pool or a hot tub. They use a lot of power to keep the home warm. If we enter in the address and the $118 a month electric bill into our HahaSmart Price Checker Tool, it recommends a 6.0kW system for the home.

The home is not covered by trees, and there is plenty of roof space. Power in Colorado is about average for the country, so even though the solar panel system is working in both cold and warm weather, the payback is still quite fast. Let’s take a closer look.

Solar Costs

Now as we stated earlier, the HahaSmart Price Checker Took recommends a 6.0 kW solar panel system and it gives a breakdown of the cost and the permits needed. The first step is to get the approval of the design and a permit to build the residential solar system. That engineering and permitting process costs about $798. 

If you add together the cost of the solar panels, the power inverters, the racking, the material needed to mount the panels, and other miscellaneous items, the total comes to about $7,703. The sales tax in Denver CO is a livable 7.65 percent which is better than many cities in the nation. If you add the sales tax of about $589 it brings the total to $8,292 in equipment and permitting. 

It is important to note that this cost does not include the electrical main service panel upgrade, and expenses or interest you accrue if you choose to finance your solar system.  The HahaSmart price checker tool compiles data from nearly 2300 different installers and it states the installation cost is from $5,748 to $7,442 for the solar panels. If we average the two numbers we get $6,594 as an average installation cost. 

Installation costs can vary and we recommend that you compare two to three different installers quotes for your needs. When you talk to multiple installers please note, local installers are certified and they care about their work. Many times they are also less expensive than national chains. Talk to multiple installers and find one that produces the best solar panel system for your situation. 

Generally, a solar installation package includes an application for a solar installation permit from the local building safety department. A plan and layout of the overall installation, a guarantee from the installation company that the project will be done right, and then a permit to operate the solar system.  If you’d like more information, click here.

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