Solar Panels in Aurora, Colorado - Costs, Installation & Rebates
14 Sep 2024
Reviewed October 2026 · How we research our guides
Solar Panel Installation in Aurora
Aurora, Colorado's cold-dry climate presents excellent opportunities for solar panel installation, with over 300 sunny days per year and low humidity that helps maintain panel efficiency. The city's high elevation of 5,471 feet provides increased solar irradiance, making solar systems more productive than in many other regions. With Xcel Energy serving Aurora residents at an average electricity rate of 12.5¢/kWh, homeowners can achieve significant savings by switching to solar power, especially given the utility's net metering program that credits excess solar production at retail rates.
Aurora's population of 386,261 across Arapahoe County is increasingly turning to solar energy as installation costs have dropped by over 70% in the past decade. The cold-dry climate is particularly beneficial for solar panels, as they operate more efficiently in cooler temperatures while still receiving abundant sunshine. Winter snow typically slides off tilted panels or melts quickly in Aurora's sunny conditions, and the dry air reduces the accumulation of dust and debris that can reduce panel efficiency in more humid climates.
Solar Panel Costs in Aurora
| System Size | Total Cost | Annual Savings | Payback Period |
|---|---|---|---|
| 5kW | $17,500 | $875 | 20 years |
| 6kW | $21,000 | $1,050 | 20 years |
| 8kW | $28,000 | $1,400 | 20 years |
Solar panel costs in Aurora average $3.50 per watt installed, making a typical 6kW residential system cost approximately $21,000 before incentives. These systems can generate solid savings given Aurora's excellent solar resource and Xcel Energy's 12.5¢/kWh electricity rates, with most homeowners seeing payback in about 20 years and 25-year savings that could reach around $26,000.
Solar Incentives in Aurora
Aurora residents may still find solar incentives that help reduce installation costs. The federal solar tax credit ended for systems installed after December 31, 2025, so incentives now come from Colorado and local utility programs. Colorado offers state incentives including property tax exemptions for solar installations, ensuring that adding solar panels won't increase your property taxes despite increasing home value. Xcel Energy provides net metering in Aurora, crediting solar customers at the full retail rate of 12.5¢/kWh for excess electricity fed back to the grid. The utility also offers Solar*Rewards rebates for qualifying systems, though these have been reduced in recent years due to high demand. Local financing options include solar loans with rates as low as 2.99% APR, and some Aurora credit unions offer special solar financing programs for residents.
Best Solar Companies in Aurora
When selecting a solar installer in Aurora, prioritize companies with proper Colorado electrical contractor licenses and North American Board of Certified Energy Practitioners (NABCEP) certified installers. Look for local experience with Aurora's building permit requirements and familiarity with Xcel Energy's interconnection process. Top-rated installers should provide comprehensive warranties including 25-year panel warranties, 10-year inverter warranties, and workmanship guarantees of at least 10 years. Verify the company's Better Business Bureau rating, read recent customer reviews on Google and solar-specific platforms, and request multiple quotes to compare equipment options, pricing, and service offerings. Established Aurora solar companies often have relationships with local building departments and Xcel Energy, streamlining the permit and interconnection process. Always ensure your installer provides detailed production estimates based on Aurora's specific climate conditions and your roof's orientation and shading.
Solar ROI in Aurora
Solar return on investment in Aurora benefits from the combination of excellent solar resources and reasonable electricity rates. A typical 6kW system can generate approximately $1,050 in annual savings at Xcel Energy's 12.5¢/kWh rate, resulting in a payback period of about 20 years. Over 25 years, savings from this system could reach approximately $26,250, though results vary by home and usage. Aurora's cold-dry climate helps maximize these returns by maintaining high panel efficiency year-round, while the area's abundant sunshine ensures consistent energy production. With panel degradation rates of only 0.5% annually and 25-year warranties, systems can continue producing savings beyond the payback period. Rising electricity rates, which have increased an average of 2.5% annually in Colorado, further improve solar ROI by increasing the value of solar-generated electricity over time.
Frequently Asked Questions
How much do solar panels cost in Aurora?
Solar panels in Aurora cost an average of $3.50 per watt installed. A typical 6kW residential system costs $21,000 before incentives. Prices vary based on equipment quality, roof complexity, and installer, with premium systems reaching $4.00 per watt while budget options may be available for $3.00 per watt.
What rebates are available in Aurora?
The federal solar tax credit ended for systems installed after December 31, 2025, but Aurora residents may still access Colorado's property tax exemption for solar installations and Xcel Energy's net metering program crediting excess production at 12.5¢/kWh. Xcel's Solar*Rewards rebate program offers limited incentives on a first-come basis, though amounts have decreased due to high solar adoption rates.
How do I choose a contractor in Aurora?
Select Aurora solar contractors with valid Colorado electrical licenses, NABCEP certifications, and local installation experience. Verify Better Business Bureau ratings, read recent customer reviews, and obtain multiple quotes. Ensure they provide comprehensive warranties (25-year panels, 10-year inverters, 10+ year workmanship) and demonstrate familiarity with Aurora building permits and Xcel Energy interconnection requirements.