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Autumn trees around the lake at Glenmere Park in Greeley, Colorado

Photo: MKMKennedy, via Pixabay

Colorado · Greeley

Greeley solar: where the building permit doubles as a tax collector

Written by the Solar Learning Lab research deskUpdated September 1, 202612 min read

Colorado exempts solar equipment from state sales tax, and plenty of Greeley homeowners will still pay sales tax on their system anyway. Both statements are true, because Greeley is a home rule city that calculates municipal sales tax at 4.11 percent on half the total project valuation and collects it through the building permit, per the city’s fee calculator page. The state exemption in Section 39-26-724 speaks only to state administered tax. It never touched this line item.

That is the kind of detail that separates a Greeley quote from a generic Front Range one. This page collects the rest: a permit desk best reached before 9 a.m., an Xcel program with two permanent elections, an income qualified incentive that tripled in April, and the hail math nobody puts in a brochure.

Start from your last twelve bills

In Xcel territory your usage history sets the system ceiling. Run the savings model first, then check the sizing rule against it.

Run the model

The tax inside the permit, and the fee that vanishes

Two Greeley specific numbers should appear in every proposal. First, that municipal sales tax: 4.11 percent applied to one half of total valuation, collected when the permit is paid, per the fee calculator. On a mid sized residential job that is hundreds of dollars a Thornton or Fort Collins quote would not show, and an installer who omits it is either eating it quietly or planning a surprise. Second, the one that works in your favor: the city waives the plan review fee entirely for project valuations under $25,000, a threshold most rooftop arrays will test from below.

Neither number appears on a solar checklist, because Greeley does not publish one. The fetched building pages show a valuation driven calculator, not a flat solar fee, so the honest budgeting method is to run your actual project value through the city’s own math rather than trust a rule of thumb from another city.

Call between 7 and 9, submit complete, or wait

Greeley Building Inspection at 1100 10th Street tells applicants exactly when to catch a plans examiner by phone: 7:00 a.m. to 9:00 a.m., with appointments strongly recommended because qualified staff are otherwise out of the office, per the building inspection page. Applications themselves go through the eTRAKiT portal, and the review process has a hard gate: nothing progresses until the submittal is complete, at which point the plan review fee is calculated and emailed, and review does not proceed until it is paid in full.

The permit trigger language is broad enough that no rooftop PV job escapes it, since installing or altering any electrical system requires a permit. One boundary error to avoid: Weld County runs a separate Building Inspection Division with its own solar handout for unincorporated addresses. If your home is inside city limits, county paperwork is the wrong paperwork.

Whose wires reach your house is a real question here

Most of Greeley is Public Service Company of Colorado territory, confirmed both by Xcel’s communities served sheet and by the city’s own Energy Action Plan, which names Xcel as the main electric utility. But the same plan notes Poudre Valley REA serves the westernmost portion of the city, about 6 percent of residential electricity use as of 2017. Everything on this page describes the Xcel program. If your address sits on the far west side, verify the name on your bill before comparing any quote, because a co-op runs entirely different solar rules.

For the Xcel majority, EIA puts the 2024 Colorado residential average at 15.05 cents per kWh, per Table 6 of the utility sales data. Cheaper power than Black Hills country to the south, which means Greeley payback math depends more on program details and less on rate pain.

Netting pays the full prevailing rate, and Xcel shows its work

Under Solar*Rewards, the bill is computed on net usage, and monthly excess comes back as a bill credit valued at the full prevailing energy price, meaning the base charge with every per kWh rider stacked on top, per the Solar*Rewards FAQ. Xcel’s own new customer FAQ walks a concrete month: a system producing 4,000 kWh against 6,000 kWh of usage gets billed on the net 2,000 and collects a $20 REC payment, 4,000 kWh at $0.005. That half cent per kWh on gross production is small, steady money that most estimates forget entirely.

Energy sourceTypeAverage priceWhat that means
Xcel EnergySchedule R, summer energy10.380¢ per kWhWinter 8.570¢. $7.10 monthly service and facility charge, production meter $2.55 where applicable. Rates in effect May 1, 2024, before adjustments.
Xcel EnergySchedule RE-TOU, summer on peak20.915¢ per kWhShoulder 14.332¢, off peak 7.749¢. Winter on peak 13.171¢.
Xcel Energy2024 residential average, all in15.05¢ per kWhEIA Table 6, bundled residential sales across 1,365,053 customers.
Monthly excessNetting creditPrevailing total energy rateBase energy plus per kWh riders, credited in dollars. Gross production also earns the $0.005 per kWh REC payment.

Rates from the Colorado residential rates brochure and program mechanics from Xcel’s FAQ, reviewed August 31, 2026.

When the meters go in, Xcel installs both the net meter and the production meter and leaves a door hanger granting permission to operate, per the new customer FAQ. No hanger, no switch flip.

Solar Bank: a question the paperwork asks exactly once

Excess credits that outlast the month land in the Solar Bank, and the homeowner picks the year end treatment: Continuous Rollover, where credits carry forward indefinitely but can never be cashed out or transferred, or an annual payout at the Average Hourly Incremental Cost of energy, a wholesale adjacent figure well below retail, per the new customer FAQ. The FAQ is explicit that once Rollover is elected, the customer cannot change to the payout option. Permanent means permanent.

The right answer depends on trajectory. A household adding an EV or a heat pump will burn down a rolled bank and should lean Rollover. One planning to downsize or sell soon may prefer the payout, small as it is, over credits that cannot follow them. What we have seen go wrong is neither option; it is the installer checking a box without asking the question.

Your last twelve bills set the ceiling, not your roof

Xcel checks every application against a bright line: when an array’s modeled annual output tops 120 percent of what the meter recorded over the prior 12 months, the application gets declined and returned for a smaller design, per the new customer FAQ. Short usage history gets averaged from a minimum of four months, and genuinely new homes are sized from a usage table by livable square footage, with proof of square footage required.

Practical consequence for Greeley’s housing stock, which the city’s Energy Action Plan profiled at 64 percent single family and 58 percent owner occupied: a big south facing roof is not a design budget. If future loads are coming, add them first, let the meter record them, then size the array. Sequencing beats arguing with an application reviewer.

The April decision moved real money toward income qualified roofs

In April 2026 the Colorado PUC approved Xcel’s renewable energy compliance plan as amended by a settlement with an environmental justice coalition, and the headline numbers are large: the Solar*Rewards residential incentive for income qualified and disproportionately impacted community customers rose from $2 to $3 per watt, and the enhanced Renewable Battery Connect incentive climbed from $800 to $1,000 per kW, per pv magazine’s coverage of the decision. The settlement also shifts $1.5 million toward outreach and requires Spanish language program materials.

At $3 per watt, a qualifying household’s incentive can rival the gross cost of a modest system. In a county seat with a large Latino population, the Spanish language requirement is not a footnote either; it is the difference between a program that exists and one that gets used. If your household might qualify, establish that before entertaining a single market rate quote.

The ledger after 25D: two exemptions and a REC check

No 2026 Greeley purchase gets the federal homeowner credit. Per the IRS reading of Public Law 119-21, expenditures after December 31, 2025 earn nothing under 25D, and the completion date, not the payment date, controls. What remains is unglamorous but durable: Section 39-26-724 strips state sales tax from generating equipment (panels, racking, inverters, wiring) while leaving labor, storage, and monitoring taxable, and resident owned systems up to 100 kW AC serving the home stay off the property tax rolls, per the Division of Property Taxation.

Remember the asterisk from the top of this page: that state exemption does not cancel Greeley’s own 4.11 percent collected through the permit. Two different governments, two different taxes, one of which still applies.

Hail days, chinook swings, and what the model says anyway

The honest risk paragraph first. Areas adjacent to Greeley, mostly farmland, take 7 to 9 hail days per year, per the city’s climate record, and the local weather likes drama in general: chinook winds can push February near 70 degrees, 50 degree swings between daily high and low are unremarkable in spring, and the record range runs from 112 above to 25 below. For a rooftop investment, that argues for impact rated glass and a call to your homeowner’s insurer about how the policy treats the array. It does not argue against solar; it argues against pretending the sky here is gentle.

Now the yield: our PVGIS run models 1592.8 kWh per kW annually at 4,676 feet on the High Plains, with June peaking at 158.9 and the extremely dry semi-arid climate keeping the curve fat from March through October.

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

June models 158.9 kWh per kW. March already clears 148, a long productive season.

PVGIS. PVGIS v5.2 NSRDB, run by Solar Learning Lab on August 31, 2026, 30 degree tilt, 14 percent losses, downtown coordinates. Your roof will differ.

The Weld County bench

Greeley’s installer pool mixes hometown shops with crews from Fort Collins and Platteville. The sorting question for this market: which Solar Bank option are you writing into my application, and what did my last 12 months of usage say? A bidder with real answers has run your numbers. One quoting from your roof dimensions learned this trade somewhere else.

Ratings snapshot: Google Maps, August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us.

Lemons Heating & Cooling logo

Lemons Heating & Cooling

Greeley, CO

4.9(395 Google reviews)

Big Dog Solar

4.7(77 Google reviews)

Alt E Wind & Solar, Ltd.

Fort Collins, CO

4.8(53 Google reviews)

Draco Solar logo

Draco Solar

Platteville, CO

4.4(38 Google reviews)

Sandbox Solar LLC logo

Sandbox Solar LLC

Greeley, CO

4.8(24 Google reviews)

Ratings and review counts are Google Maps ratings for Greeley local results, retrieved August 17, 2026 via the DataForSEO SERP API. We list the highest rated established companies we found. No company paid to appear here, and appearing here is not an endorsement. Check current reviews and licensing before you sign anything.

Kick the tires on the savings claim

The model below uses the 15.05 cent 2024 Xcel Colorado average and our Greeley production run. It does not know your rate schedule, your Solar Bank pick, or whether you qualify for the $3 per watt incentive, so treat the output as a floor for questions rather than a ceiling for promises.

$101
1,593

The upper bound is our downtown Greeley PVGIS run, 1,592.8 kWh per kW at 4,676 feet on the High Plains. The lower bound trims 15 percent for shade and orientation before any hail or snow adjustments.

$2.66

Cash quotes in Greeley cluster near $2.66 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.

Assumptions you can change
2.5%
7%
15
24c

Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.

2%
Estimated system: 5.1 kWAnnual usage: 8,053 kWhState credit: $0

Cash purchase

$13,566 after state credit

Year 1 benefit
$102/mo
Payback
11 years
20 year net position
$16,102

Greeley cash math has a line item other Colorado cities skip: the city collects its 4.11 percent home rule sales tax through the building permit on half the project valuation. The state exemption on solar equipment does not remove it.

Solar loan

$177/mo 15 yr payment

Year 1 net
-$75/mo
Upfront
$0
20 year net position
-$2,182

No city or Xcel loan product covers Greeley, so financing is a straight market comparison. Income qualified households should price the $3 per watt Solar*Rewards incentive before signing anything, since it can shrink the principal outright.

Lease / PPA

$0 down you buy the power

Year 1 net
-$61/mo
Upfront
$0
20 year net position
-$15,369

The homeowner 25D credit ended December 31, 2025, and our sources make no claim about third party tax treatment. A Greeley lease should state which Solar Bank election was made and who keeps the monthly REC payment.

Estimates, not quotes. Inputs use the 2024 EIA average for Public Service Co of Colorado, our Greeley PVGIS run, and EnergySage Colorado cost data. Time of use pricing, Solar Bank elections, and municipal permit tax are not modeled. We are a solar installer and we also partner with other solar companies. See our disclosures.

Greeley, asked plainly

Is every Greeley home on Xcel?
Most are, but Poudre Valley REA serves the westernmost part of the city, about 6 percent of residential electricity use as of 2017 per the Energy Action Plan. Check the name on your bill before comparing programs. Energy Action Plan.
Will I pay sales tax on solar despite the state exemption?
The state exemption under 39-26-724 covers state tax on generation equipment. Greeley separately collects its home rule city sales tax at 4.11 percent on half the project valuation through the building permit. Fee calculator page.
Can I oversize for an EV I plan to buy?
Not past 120 percent of your trailing 12 month usage; over the line, Xcel declines the application. Add the load first, then size to the recorded usage. Xcel new customer FAQ.
Can I undo a Solar Bank rollover election?
No. The FAQ states that once Continuous Rollover is elected, you cannot switch to the year end payout, and rolled credits can never be cashed out or transferred. Xcel FAQ.
What changed in April 2026?
The Colorado PUC approved a settlement raising the income qualified Solar*Rewards incentive from $2 to $3 per watt and the enhanced battery incentive from $800 to $1,000 per kW, with $1.5 million shifted to outreach and Spanish language materials required. Coverage of the decision.
Does hail make solar a bad idea here?
No, but it is a real underwriting question. Adjacent areas see 7 to 9 hail days a year, so ask about impact rated modules and confirm your homeowner’s policy covers the array. Climate record.

Source shelf

Reviewed August 31, 2026. When the city publishes no figure, such as a flat solar permit fee, this page says so instead of inventing one.

Get a Greeley design sized to your meter

Have your utility name and 12 months of usage handy. Those two items settle the territory question and the 120 percent ceiling before design begins. We are a solar installer and we also partner with other solar companies. Read our disclosures.

What does your monthly electric bill look like?

Greeley average is $101 per month (EIA, 2024).