The questions that matter most
How long will you live in this home? A cash purchase takes years to pay back, and payback is slower now that the 30% federal homeowner credit ended for systems completed after 12/31/2025. If a move to be near family or to a smaller place is likely within a handful of years, a cash or loan purchase is harder to justify on savings alone.
How predictable do you need your costs to be? A fixed-rate loan payment or a lease with a 0% escalator gives you a known number. Utility bills don’t come with that promise. For some retirees, trading a variable bill for a fixed payment is the real value, even if the lifetime savings are modest.
Tax credits you may not be able to use
Many retirees have little state income-tax liability. Colorado’s 10% home-battery credit (for tax years through 2026) is nonrefundable, so it only helps if you owe state tax — unless you assign it to the seller, which the statute allows and which can lower the price instead. Ask us how that works for your purchase.
On the federal side, the homeowner solar credit is gone. With a lease or PPA, the system owner can still claim a federal credit on solar placed in service by the end of 2027, and that value is built into the lower monthly price — which is one reason leases and PPAs can make more sense than a purchase for someone without much tax liability.
Leases, PPAs, and loans — straight talk
Our leases and PPAs typically price power 20–30% below retail utility rates, with typical payments of $125–$240 a month and escalators from 0% to 3% a year. Read the escalator carefully: a 3% escalator compounds over 20-plus years. Also read the transfer terms — if you move or pass away, the agreement goes with the house, and a buyer or your estate will need to assume or buy it out.
Our loan options run 7.74%–8.99% APR through the Colorado RENU program at Westerra Credit Union (up to 20 years) and 8.99% through Concert Finance (up to 25 years). A loan term longer than you expect to stay in the home deserves a hard look.
Programs worth checking first
Some Colorado communities run income-qualified energy programs — Boulder’s EnergySmart, for example, was income-qualified only in 2026, and Denver residents can ask the city’s Energy Resource Center. Xcel has offered a higher battery incentive for income-qualified customers. Amounts and openings change often, so check before you sign anything.
Also: take your time. Anyone who presses a retiree to sign at the kitchen table on the first visit is not someone to buy from. We’re happy to review a quote you already have.
What to do next
- 1Be honest with yourself about how long you’ll stay in the home.
- 2Check last year’s tax return: did you owe Colorado income tax, and roughly how much?
- 3Compare cash, loan, and lease/PPA with the financing calculator — look at total cost, not just the first-year saving.
- 4Read any lease or PPA’s escalator and transfer terms, and share them with a family member or advisor.
- 5Check income-qualified programs through your city or utility before you buy.
- 6If a salesperson has already quoted you, use the quote checker or send it to us for a second opinion.
FAQ
Questions we hear
Can I use the Colorado battery tax credit if I don’t owe state income tax?
Not directly — it’s nonrefundable. The statute allows the credit to be assigned to the seller, which can reduce your price instead. As of September 2026 it applies to tax years through 2026; confirm with your tax preparer.
What happens to a solar lease if I pass away or sell?
The agreement generally transfers with the house. A buyer can assume it if they qualify, or the balance may be bought out. Read the transfer clause before signing and keep a copy with your estate documents.
Is a 25-year solar loan a bad idea at 70?
Not automatically, but it deserves scrutiny. What matters is whether savings cover the payment and what happens if the home is sold. A shorter term or a lease may fit better.
Is solar worth it for a retiree with a small electric bill?
Often not. If your electric bill is already low, the system would be small, fixed costs of permitting and installation weigh more, and the payback stretches out. We’ll say so if that’s you.
Are there free solar programs for seniors in Colorado?
Be wary of anything marketed as free — it is usually a lease or PPA. Genuine income-qualified programs exist in some cities and utilities, but they change often. Check with your city and utility directly.