In Colorado, a 5.3-kW system for an average home costs about $13,886 after incentives in 2026, saves about $1,327 in the first year and pays back in 9.2 years.
| Item | Amount |
|---|---|
| Solar, 5.28 kW × $2.63/W | $13,886 |
| Federal credit (0%) | $0 |
| Net cost | $13,886 |
| Scenario | Net cost | Year-1 savings | Payback | 25-yr net |
|---|---|---|---|---|
| State averages (above) | $13,886 | $1,327 | 9.2 yr | $33,663 |
| Rates rise 5.6%/yr (2020–25 pace) | $13,886 | $1,327 | 8.5 yr | $53,086 |
| Rates stay flat | $13,886 | $1,327 | 10.5 yr | $18,835 |
| Survey price $3.6/W (LBNL) | $19,008 | $1,327 | 12.1 yr | $28,542 |
| Add 13.5-kWh battery | $30,910 | $1,327 | 18 yr | $16,640 |
| Exports cut to 50% of retail | $9,258 | $660 | 12.2 yr | $13,251 |
Verdict: at average Colorado numbers, solar is a solid investment in 2026 — payback takes 9.2 years, leaving you $33,663 ahead after 25 years. The main reasons: strong sun (the 8th-best yield of 51); 1:1 net metering, which credits every exported kWh at the full retail price. Pay cash if you can: Berkeley Lab found loan-financed systems priced about $1.50/W above cash installs in 2025, which can add years to the payback.
Net metering and exports in Colorado: Retail net metering with monthly rollover; Xcel year-end kWh payout at avoided cost ('a couple cents per kWh') or dollar-credit option.
Battery: a 13.5-kWh battery at the Colorado average of $1,261/kWh adds $17,024 and saves almost nothing extra under 1:1 net metering — buy it for backup, not payback; payback becomes 18 years.
EnergySage's Colorado page lists a 15.8-year payback. Its method is not fully published; ours uses EIA's Jan–Aug 2026 price, 1:1 net metering, 3%/yr rate growth and 0.5%/yr panel aging, with no federal credit.
The full method, material data and tips are on the main solar payback calculator page.