Solar panels in Denver: what they cost and what they make
A typical Denver home needs 13 solar panels. They would make about 8,761 kWh a year and cost $14k to $21k before incentives. At today's electricity prices they pay for themselves in about 11.0 yrs.
See panels on your own Denver roof
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What solar costs in Denver
At $3.00 a watt, the median price cash buyers pay nationally, a 5.5 kW system costs about $16,500. Quotes in Denver will usually fall between $13,750 and $20,625. Complex roofs, main-panel upgrades and financing push prices up.
The 30% federal tax credit no longer applies to systems homeowners buy. This estimate includes no state or utility incentives; check with your utility before you buy.
The number that decides whether solar pays in Denver is what your utility pays for the power you send back. Under full payback is about 11.0 yrs. Under net billing it is about 18.6 yrs, because only the ~40% of solar a typical home uses as it is made saves the full retail price.
Cash purchase, prices rising 2.5% a year, panels losing 0.5% a year, $25/kW a year for upkeep. No federal credit for homeowner-owned systems.
Every way to pay for a 5.5 kW system in Denver
Change any number →| Way to pay | Day one | Monthly payment | Monthly net, year 1 | Ahead after 25 years |
|---|---|---|---|---|
| Pay cash Full price on install day | $16,500 | $0 | +$111 | $27k |
| Credit-union loan 8% APR, 20 years, no dealer fee | $0 | $138 | −$27 | $10k |
| “1.99%” solar loan 1.99% APR, 25 years, 25% dealer fee | $0 | $87 | +$23 | $17k |
| Lease $105/mo, +2.9%/yr | $0 | $105 | +$17 | $1,500 |
| Power purchase (PPA) 14.2¢/kWh, +2.9%/yr | $0 | $104 | +$18 | $5,000 |
Under net metering, at 16.7¢/kWh rising 2.5% a year. The “1.99%” loan’s $4,125 dealer fee is included in its payments. Lease and PPA prices are typical offers, not quotes.
How much sunshine Denver gets
kWh per kW, 25° southJun is the best month for solar in Denver, and Dec the weakest: a Dec day makes 63% of a Jun day. A 6 kW system would make about 584 kWh in Dec and 928 kWh in Jun.
On June 21 the sun rises at 5:31 am and sets at 8:31 pm, 14 hours 59 minutes of daylight. On December 21 it is up from 7:17 am to 4:38 pm, just 9 hours 21 minutes.
Peak sun hours in Denver, month by month
| Month | Flat ground | Panels at 39° | kWh per kW |
|---|---|---|---|
| Jan | 2.6 | 4.7 | 106 |
| Feb | 3.6 | 5.5 | 116 |
| Mar | 4.8 | 6.1 | 147 |
| Apr | 5.7 | 6.0 | 147 |
| May | 6.3 | 5.9 | 152 |
| Jun | 7.2 | 6.2 | 155 |
| Jul | 6.8 | 6.1 | 153 |
| Aug | 6.1 | 6.1 | 149 |
| Sep | 5.3 | 6.4 | 143 |
| Oct | 3.9 | 5.8 | 131 |
| Nov | 2.8 | 5.0 | 108 |
| Dec | 2.3 | 4.4 | 97 |
| Year | 4.8 | 5.7 | 1,605 |
A peak sun hour is one hour of sunlight at 1,000 W per m². Why sites disagree.
The best angle and direction for panels in Denver
| Roof faces (6/12 pitch) | Output vs south | kWh per kW |
|---|---|---|
| South | 100% | 1,605 |
| Southeast | 95% | 1,525 |
| Southwest | 94% | 1,509 |
| East | 81% | 1,300 |
| West | 81% | 1,300 |
| North | 57% | 915 |
Face panels south and tilt them 39° for the most energy over a year. East and west roofs keep about 81% of that. A north-facing roof keeps 57%, which is rarely worth the money. Try other angles.
Where the sun goes over Denver
The noon sun is lower in winter, which is why the best winter tilt (65°) is steeper than the best summer tilt (10°).
Denver's homes
Denver has 335,428 households. 48.8% own their home, and 135,843 of those owners live in single-family houses, the kind of home that usually gets rooftop solar.
The median home here was built in 1975. Many roofs that age are due for replacement. Replace the roof first, then add solar: taking panels off and putting them back later costs thousands.
35.6% of homes heat with electricity and 60.8% with gas. If you switch to a heat pump or an electric car, plan for more panels or leave room on the roof.
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates.
If the power goes out in Denver
Solar panels alone shut off in a blackout. Add a battery and they keep going. One Tesla Powerwall 3 (13.5 kWh) running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day):
Change the appliances, the battery and the weather in the battery calculator.
Questions people ask about solar in Denver
How much do solar panels cost in Denver?
A 5.5 kW system — enough for the average Colorado home — costs about $13,750 to $20,625 before incentives, based on $2.50–$3.75 per watt. The 30% federal credit no longer applies to systems homeowners buy.
How many solar panels does a house in Denver need?
About 13 panels of 420 watts for a home using 674 kWh a month, the Colorado average. Each kilowatt of panels here makes about 1,605 kWh a year on a south-facing roof.
Is solar worth it in Denver?
Over 25 years, solar power here costs about 9.6¢ per kWh, against 16.7¢ from the grid today. Payback is about 11.0 yrs if your utility credits exported power at the full retail rate, and 18.6 yrs if it pays about 30% of retail.
How many peak sun hours does Denver get?
5.7 a day on panels tilted to 39°, and 4.8 on flat ground. The best month is Sep; the weakest is Dec.
What is the best angle for solar panels in Denver?
39° for the most energy over a year, facing south. 65° is best in winter and 10° in summer. On a normal pitched roof, anything within 15° of 39° gives you about 95% of the maximum.
How long would a home battery last in a Denver power outage?
A Tesla Powerwall 3 running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day) lasts about 43 hours with no sun. With 7 kW of solar to recharge it, it gets through a three-day outage even in overcast January.
Solar near Denver
| City | Miles | kWh per kW | Sun hours |
|---|---|---|---|
| Aurora, CO | 9 | 1,648 | 5.7 |
| Commerce City, CO | 10 | 1,636 | 5.7 |
| Thornton, CO | 11 | 1,631 | 5.7 |
| Centennial, CO | 12 | 1,654 | 5.7 |
| Westminster, CO | 13 | 1,631 | 5.7 |
Cities with the same sunshine as Denver
These far-away cities get almost exactly as much solar energy per panel.
- Santa Rosa, CA 1,636 kWh per kW
- Yuba City, CA 1,636 kWh per kW
- Oakland, CA 1,628 kWh per kW
Snow: NASA records about 17 cm of snow on the ground here in an average January. Covered panels make little until it slides off, and these figures (like PVWatts') don't subtract that.
Sources: NASA POWER 2001–2020 monthly climatology (grid cell 44 km from Denver's Census point), our PV model (within 1.6% of NLR PVWatts® on average), U.S. EIA prices and use, U.S. Census 2025 population estimates and ACS 2020–2024. Estimates for an average home, not a site survey. How we calculate.