Is Going Solar in Montrose a Good Investment in 2026?
With its prime location on the Western Slope, Montrose receives some of the best sunshine in Colorado, making it an ideal spot for rooftop solar. But does that strong sun translate into real savings? For homeowners served by Delta Montrose Electric Association (DMEA), the answer is yes. Even without a federal tax credit in 2026, the combination of high solar production, solid state-level incentives, and favorable utility policies creates a compelling financial case for generating your own electricity.
From rates to ROI—continue in the savings calculator.
Open calculatorBenchmark Cost Analysis
What to Expect for Solar Panel Costs in Montrose
For a home in the Montrose area, a 5.6 kW solar system is typically sufficient to offset the average electricity bill. The estimated cost for a system of this size in early 2026 is approximately $15,400.
- Solar Only System Cost: $15,400
- Solar + Battery System Cost: Around $30,400
The payback period for a solar-only system is estimated at just under 12 years. Adding a battery significantly extends this payback time, making it primarily a choice for homeowners seeking backup power during grid outages rather than faster financial returns, thanks to DMEA's strong net metering program.
Incentives & Tax Credits
Key Colorado Solar Incentives for DMEA Members
While the 30% federal residential solar tax credit expired at the end of 2025, Colorado homeowners still benefit from powerful state-level policies that reduce the financial burden of going solar:
- No Added Property Tax: Your home's assessed value won't go up because you installed solar panels. This exemption ensures your property taxes remain unchanged, letting you keep all the financial benefits of the system.
- No State Sales Tax: All solar energy equipment is exempt from Colorado's state sales tax, which lowers the initial purchase price of your system.
- Full-Value Export Credits: The net metering policy available to DMEA customers ensures you get full credit for every unit of excess power you generate, maximizing your investment.
Net Metering: Delta Montrose Electric Association
Retail Net Metering
Optional
How Solar Credits Work with Delta Montrose Electric Association (DMEA)
DMEA offers its members a retail-rate net metering program. This is the most beneficial structure for a solar homeowner. It works simply: when your panels produce more electricity than your home is using, the extra power flows to the grid. DMEA tracks this exported energy and gives you a bill credit for its full retail value. These credits then offset the cost of any electricity you pull from the grid later, such as at night. This 1-to-1 exchange makes your solar investment highly efficient, as none of your generated power goes to waste.
Projected Savings
Projected Annual Savings with Rooftop Solar
A 5.6 kW system in Montrose is modeled to save a homeowner around $1,080 in the first year alone. This figure is based on the current DMEA electricity rate of $0.163 per kWh. The long-term value of solar grows if grid electricity costs continue to climb. By locking in your energy production, you protect your budget from future utility rate increases. An owned solar system also adds a modern, valuable feature to your home, which can be an attractive point for potential buyers down the road.