Property Tax Exemption for Residential Renewable Energy Equipment
Administered by Division of Property Taxation / Local Assessors
Your residential solar PV system or energy storage system up to 100 kW is exempt from Colorado property taxes, reducing your ownership costs with no application required if it produces electricity primarily for your home's use. Systems larger than 100 kW or those designed for off-site electricity sales do not qualify for this exemption.
You can market this property tax exemption as a long-term financial benefit for residential customers installing solar PV and battery storage systems under 100 kW. Ensure systems are designed for on-site residential use and document the AC capacity to qualify; systems exceeding 100 kW or primarily generating power for sale are ineligible.
This constitutional tax exemption applies to residential renewable energy personal property (solar PV, energy storage) under 100 kW located on residential real property and used for on-site consumption, with no spending caps, sunset dates, or administrative application process specified. The exemption is self-executing under Colorado law; systems must be verified as locally assessed property under 2 MW to receive the benefit, excluding only utility-scale or off-site generation systems.
Program details
- Program ID
- 4210
- Last updated
- 3/20/2026
Eligibility
- Sectors
- residential
- Technologies
- solar photovoltaics lithium-ion
Program summary
Property Tax Exemption
Renewable energy personal property that is located on a residential classified property, owned by the residential property owner, and produces energy that is used by the residential property is exempt from Colorado property taxation.
Independently owned residential solar electric generation facilities that meet the criteria listed in § 39-1-102 (6.8), C.R.S. are exempt from Colorado property taxation under § 39-3-102, C.R.S. To qualify for the exemption the solar electric generation facility must be located on residential real property, used to produce electricity from solar energy primarily for use in the residential improvements, and have a production capacity of no more than 100 kW of AC electricity. Energy storage systems connected to the generation system are included as part of the facility.
Eligible Technologies
Most locally assessed renewable energy property meet the criteria to be classified as personal property under § 39-1-102 (11), C.R.S.
For Colorado property taxation purposes, solar energy facilities (e.g., PV panels, community solar gardens) property used to produce 2 megawatts (MW) or less of AC electricity and wind energy facilities property used to produce 2 MW or less of AC electricity are locally assessed. In addition, locally assessed renewable energy property includes small or low impact hydroelectric facilities, geothermal energy facilities, and biomass energy facilities as defined in § 39-4-101, C.R.S., used to produce 2 MW or less of AC electricity and placed into use prior to January 1, 2010. Community solar gardens are classified as locally assessed properties. Energy storage systems connected to the generation system are included as a part of the facility for valuation purposes.
Ineligible Technologies
Renewable energy property in Colorado is taxable unless specifically exempt by the Colorado Constitution.
All renewable energy systems with greater than 2 MW of AC electricity generation capacity are valued as public utility property by the State Assessed Properties Section of the Division of Property Taxation (Division). Small or low impact hydroelectric facilities, geothermal energy facilities, and biomass energy facilities, as defined in 39-4-101, C.R.S., that are put into use on or after January 1, 2010 and not primarily designed to supply electricity for consumption on site are state assessed regardless of AC generation capacity.
Contact & resources
- Contact email
- Ken.Beazer@state.co.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
