If you’re a Denver homeowner who’s been eyeing solar panels, the time to act is urgently now. The recent passage of the OBBB confirms that one of the most impactful financial benefits—the residential solar tax credit in Denver—will expire after December 31, 2025. This is no longer a possibility; it’s a fact. Currently, these tax credits help homeowners dramatically reduce the upfront cost of solar installation, improving both accessibility and long-term savings. But now that Section 25D is officially ending, homeowners have a rapidly closing window to claim thousands in savings before it disappears.
Over the last fifteen years, Denver has become a leader in clean energy adoption, with thousands of households making the switch to solar to cut emissions and escape utility rate hikes. These tax credits have been key to making that possible, but their expiration marks the end of an era.
Without this credit, solar installation will become significantly more expensive, limiting access for families and slowing down Colorado’s clean energy momentum. The ripple effects will hit not just homeowners, but also local clean energy jobs, innovation, and grid resilience.
What Is the Residential Solar Tax Credit in Denver?
It refers to the federal Investment Tax Credit (ITC), which allows homeowners to deduct 30% of the cost of a solar PV system from their federal taxes. This includes everything from the panels and batteries to installation and permitting.
How It Works
The ITC functions as a direct tax credit. For example, a $20,000 solar system can net you $6,000 back in tax savings. The credit applies for the year your system is installed, and if your tax liability is lower than the credit amount, you can roll over the difference to the following year.
Why It’s So Valuable
- No maximum limit – The 30% applies regardless of your total system cost.
- One-time benefit – You get one large credit per installation.
- Covers more than panels – Wires, inverters, labor, and more qualify.
- Stackable – Can be combined with other rebates and incentives.
Now that the credit is officially expiring, delaying your solar investment could mean forfeiting thousands of dollars in financial relief.
Understanding Clean Energy Tax Credits
Clean energy tax credits in Denver include multiple federal, state, and local incentives to promote renewable energy use. These apply to homeowners, businesses, and nonprofits alike.
Federal Incentives
- 30% ITC for residential solar systems (Section 25D) – Confirmed to expire after 12/31/25.
- Credits for battery storage systems
Colorado-Specific Incentives
- Property Tax Exemption – Solar doesn’t raise your home’s assessed value.
- Sales Tax Exemption – No sales tax on eligible solar equipment.
- Local Utility Rebates – Xcel Energy and others offer additional cash incentives.
To be eligible, systems must be installed on a home you own and occupy (either primary or secondary), meet performance standards, and be newly installed, not leased or reused.
The Impact of Solar Panel Tariffs on Denver Homeowners
Recent tariffs on imported solar components have already caused price hikes and installation delays across the U.S. Intended to promote domestic manufacturing, these tariffs are driving up costs in the short term.
Rising Costs Are Already Happening
Panels and solar materials have already jumped by 10%-20% in cost. That means if you delay, you could face significantly higher prices and lose access to the solar credit when it expires.
What This Means for You
- Fewer product choices
- Longer project timelines
- Higher upfront costs without federal tax relief after 2025
Tariffs and tax credit expiration together create a perfect storm. Lock in your pricing and incentives before it’s too late.
Why You Should Claim the Tax Credit Before 2025 Ends
There’s no longer any “what if”. The 30% Section 25D tax credit is officially ending after December 31st, 2025. If you haven’t installed your system by then, you will lose access to a federal program that’s powered millions of homes and made solar accessible for everyday families.
What You’ll Miss if You Wait
- Thousands in lost tax savings
- Rising material and labor costs
- Backlogged installer schedules due to the 2025 deadline rush
Don’t Miss the Solar Window: Partner with ARE Solar Before It’s Too Late
Now that it’s confirmed the residential solar tax credit in Denver will end after 2025, the urgency is real. ARE Solar is here to help you navigate this final opportunity to claim massive savings through clean energy tax credits in Denver before they disappear.
As Denver’s trusted solar design and installation team, ARE Solar handles everything from design to permitting, system connection, and long-term monitoring. We stay ahead of legislation, market changes, and technical requirements so you can get the maximum return on your solar investment.
We’ll help you qualify for both the 30% ITC and the 10% domestic content bonus, advise you on product availability amid tariff impacts, and ensure your system is installed on time. With our experience, transparency, and commitment to quality, you’ll have a stress-free path to long-term energy savings.
Let’s secure your future while incentives still exist. Contact us today to schedule your free consultation and lock in your solar benefits before they vanish.
