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 | Colorado average | US average | |
|---|---|---|---|
| Solar output, kWh per kW a year | 1,655 | 1,611 | 1,517 |
| Electricity price per kWh | 16.80¢ | 16.80¢ | 18.19¢ |
| System size for a typical home | 6.5 kW | 6.7 kW | 7.1 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.
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
Year-by-year table
| Year | Generation (kWh) | Price per kWh | Saved that year | Saved so far |
|---|---|---|---|---|
| 1 | 10,788 | $0.168 | $1,812 | $1,812 |
| 2 | 10,734 | $0.173 | $1,857 | $3,670 |
| 3 | 10,680 | $0.178 | $1,904 | $5,573 |
| 4 | 10,627 | $0.184 | $1,951 | $7,524 |
| 5 | 10,574 | $0.189 | $1,999 | $9,524 |
| 6 | 10,521 | $0.195 | $2,049 | $11,573 |
| 7 | 10,468 | $0.201 | $2,100 | $13,673 |
| 8 | 10,416 | $0.207 | $2,152 | $15,825 |
| 9 | 10,364 | $0.213 | $2,206 | $18,030 |
| 10 | 10,312 | $0.219 | $2,260 | $20,291 |
| 11 | 10,261 | $0.226 | $2,317 | $22,607 |
| 12 | 10,209 | $0.233 | $2,374 | $24,982 |
| 13 | 10,158 | $0.240 | $2,433 | $27,415 |
| 14 | 10,107 | $0.247 | $2,494 | $29,908 |
| 15 | 10,057 | $0.254 | $2,556 | $32,464 |
| 16 | 10,007 | $0.262 | $2,619 | $35,083 |
| 17 | 9,957 | $0.270 | $2,684 | $37,767 |
| 18 | 9,907 | $0.278 | $2,751 | $40,518 |
| 19 | 9,857 | $0.286 | $2,819 | $43,338 |
| 20 | 9,808 | $0.295 | $2,889 | $46,227 |
| 21 | 9,759 | $0.303 | $2,961 | $49,188 |
| 22 | 9,710 | $0.313 | $3,035 | $52,223 |
| 23 | 9,662 | $0.322 | $3,110 | $55,333 |
| 24 | 9,613 | $0.332 | $3,187 | $58,520 |
| 25 | 9,565 | $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
| City | Distance | kWh per kW a year | Price per kWh | System size | First-year savings |
|---|---|---|---|---|---|
| Colorado Springs, Colorado | 62 miles | 1,684 | 16.80¢ | 6.4 kW | $1,812 |
| Albuquerque, New Mexico | 336 miles | 1,821 | 15.34¢ | 5.9 kW | $1,655 |
| Omaha, Nebraska | 475 miles | 1,480 | 12.92¢ | 7.3 kW | $1,394 |
| Oklahoma City, Oklahoma | 500 miles | 1,574 | 13.81¢ | 6.9 kW | $1,490 |
| Tulsa, Oklahoma | 550 miles | 1,499 | 13.81¢ | 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.