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Solar panels in Denver, Colorado: output, savings and payback

Solar panels in Denver produce about 1,655 kWh a year for each kW installed, 9% more than the average of the 400 US cities in our data (1,517 kWh). Among the 13 Colorado cities we cover, it ranks 5th of 13 for solar output, against an average there of 1,611 kWh.

Colorado’s average residential electricity price for January to August 2026 was 16.80¢ per kWh, 1.39¢ below the US average of 18.19¢, according to the Energy Information Administration.

For a home using the US average of 899 kWh a month, a 6.5 kW system would cover a year’s use and save about $1,812 in its first year, or $61,787 over 25 years. With the average sunshine of the 400 US cities in our data, the same home would need a 7.1 kW system. Because Denver gets more sun, it needs 8% less capacity to cover the same use, so at any price per watt the system costs 8% less and pays for itself sooner.

There is no verified US installed-price figure yet, so add the price per watt from your installer’s quote in the calculator below to see the payback period for Denver.

A typical home in Denver

System size
6.5 kW
Sized to cover 10,788 kWh a year
First-year generation
10,788 kWh
First-year savings
$1,812
At 16.80¢ per kWh
Savings over 25 years
$61,787
Prices rising 3% a year
Payback
Needs your quote
No verified US installed price yet: enter yours below

Assumes all the electricity the panels make is used at home, up to the home’s yearly use, and that panel output falls 0.5% a year. Power sent to the grid is counted at zero.

How Denver compares

Denver compared with the Colorado and US averages
DenverColorado averageUS average
Solar output, kWh per kW a year1,6551,6111,517
Electricity price per kWh16.80¢16.80¢18.19¢
System size for a typical home6.5 kW6.7 kW7.1 kW
First-year savings$1,812$1,812$1,962

Averages are of the 13 places in Colorado and the 400 US cities in our data, unweighted. The US column uses the US average price as well as the average sunshine.

Your home in Denver

All amounts in US dollars.

Your home

Sets how much electricity each kW of panels makes in a year at your location.

kWh per month

Check your utility bill: most show monthly kWh. Average your last 12 months if you can.

cents per kWh

Starts at the Colorado residential average for January to August 2026. Your bill shows your own rate.

Solar system
kW

Leave blank to size the panels to cover your yearly use, or enter the size on your quote.

Installed price
$per W

Enter the price from your installer quote to see cost, payback and return. Your quote divided by the system size in watts (for example, a 6 kW system is 6,000 W).

Assumptions you can change
% per year

Starts at 0.5%, the median of nearly 2,000 reported rates in an NREL review.

% per year

A scenario, not a forecast. Try 0% and 5% to see how much it matters.

%

Share of the panels’ output your home uses as it is made. 100% assumes all of it offsets power you would otherwise buy, up to your annual use.

A battery only adds savings when you use less than 100% of your solar power directly. Lower “Used directly at home” under assumptions to model that.

Results

Payback period

Add your installer’s quoted price to see payback

First-year savings
$1,812
Savings over 25 years
$61,787
System size
6.5 kW
Sized to cover your yearly use
First-year generation
10,788 kWh
Cumulative savings over 25 yearsAdd your quoted price to compare against the cost.
Year-by-year table
Generation and savings for each of the 25 years
YearGeneration (kWh)Price per kWhSaved that yearSaved so far
110,788$0.168$1,812$1,812
210,734$0.173$1,857$3,670
310,680$0.178$1,904$5,573
410,627$0.184$1,951$7,524
510,574$0.189$1,999$9,524
610,521$0.195$2,049$11,573
710,468$0.201$2,100$13,673
810,416$0.207$2,152$15,825
910,364$0.213$2,206$18,030
1010,312$0.219$2,260$20,291
1110,261$0.226$2,317$22,607
1210,209$0.233$2,374$24,982
1310,158$0.240$2,433$27,415
1410,107$0.247$2,494$29,908
1510,057$0.254$2,556$32,464
1610,007$0.262$2,619$35,083
179,957$0.270$2,684$37,767
189,907$0.278$2,751$40,518
199,857$0.286$2,819$43,338
209,808$0.295$2,889$46,227
219,759$0.303$2,961$49,188
229,710$0.313$3,035$52,223
239,662$0.322$3,110$55,333
249,613$0.332$3,187$58,520
259,565$0.342$3,267$61,787

Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.

Nearby cities

CityDistancekWh per kW a yearPrice per kWhSystem sizeFirst-year savings
Colorado Springs, Colorado62 miles1,68416.80¢6.4 kW$1,812
Albuquerque, New Mexico336 miles1,82115.34¢5.9 kW$1,655
Omaha, Nebraska475 miles1,48012.92¢7.3 kW$1,394
Oklahoma City, Oklahoma500 miles1,57413.81¢6.9 kW$1,490
Tulsa, Oklahoma550 miles1,49913.81¢7.2 kW$1,490

Solar panels in Denver: questions

How much electricity do solar panels produce in Denver, Colorado?
About 1,655 kWh a year for each kW of panels, for a roof-mounted, south-facing array at a 30° tilt with 14% system losses (PVWatts). A 6.5 kW system would make about 10,788 kWh in its first year. Shade, a different roof angle or an east or west-facing roof will change this.
How much could solar panels save in Denver, Colorado?
At Colorado’s average residential price of 16.80¢ per kWh, a 6.5 kW system sized for an average US home would save about $1,812 in its first year and $61,787 over 25 years. That assumes the home uses all the power the panels make, electricity prices rise 3% a year and panel output falls 0.5% a year. Power sent to the grid is counted at zero. At the US average price of 18.19¢, the first-year figure would be $1,962.
How long do solar panels take to pay back in Denver, Colorado?
It depends on the installed price on your quote, which varies by installer and system, and we do not have a verified US average to use. Enter your quote in the calculator on this page: Denver’s solar output and Colorado’s electricity price are already filled in. Every $0.10 per watt adds about $650 to the price of a 6.5 kW system.
What do homes in Denver, Colorado pay for electricity?
Colorado’s average residential price for January to August 2026 was 16.80¢ per kWh, against 18.19¢ for the US as a whole (EIA Electric Power Monthly, Table 5.6.B). Your own rate depends on your utility and plan, so use the figure from your bill in the calculator if you can.
How does Denver compare with nearby cities?
Of the 5 nearest cities we cover, Albuquerque (336 miles away) gets the most sun at 1,821 kWh per kW, and Omaha (475 miles away) the least at 1,480 kWh. Denver gets 1,655 kWh. Within Colorado, it ranks 5th of the 13 cities we cover.
Where do these figures come from?
Solar output is from the PVWatts V8 tool for Denver’s coordinates in the Census Bureau Gazetteer, checked on 2026-11-11. The electricity price is the EIA residential average for Colorado for January to August 2026, and household use is the EIA average for US homes. Each figure is listed with its source link at the bottom of this page.

Sources for this page

  • Solar output for Denver: developer.nlr.gov (checked 2026-11-11)PVWatts V8.5.0 outputs.ac_annual for a 1 kW system. Weather data: 486467.csv, station at 39.77000045776367, -104.9000015258789 (1,846 m away).
  • Colorado electricity price: www.eia.gov (checked 2026-11-11)Colorado, residential sector, year-to-date through August 2026. Published as 16.80 cents per kilowatthour.
  • US average price: www.eia.gov (checked 2026-11-11)U.S. Total, residential sector, year-to-date through August 2026. Published as 18.19 cents per kilowatthour.
  • Typical household use: www.eia.gov (checked 2026-11-10)Average annual electricity sold to a U.S. residential utility customer in 2022: 10,791 kWh ("an average of about 899 kWh per month").
  • Panel output loss: docs.nlr.gov (checked 2026-11-10)Median of nearly 2,000 reported degradation rates: "a median value of 0.5%/year" (average 0.8%/year).
  • Location: www2.census.gov (checked 2026-11-10)Census Gazetteer INTPTLAT/INTPTLONG (internal point) for GEOID 0820000, "Denver city".

Methods and every other figure are on the methodology page.