Battery storage is becoming one of the smartest energy upgrades for Colorado homeowners—and thanks to multiple incentives, it’s also more affordable than ever. Between Colorado state tax credits (DR 1307), Xcel Energy’s Renewable Battery Connect program, and the Federal 30% Investment Tax Credit (ITC), homeowners can significantly reduce the cost of adding a battery system, with or without solar.
Here’s a clear breakdown of the main battery rebates and incentives available in Colorado, and how they can work together.
Colorado Battery Tax Credit (DR 1307)
Colorado offers one of the most valuable state-level incentives for home battery storage through Form DR 1307, officially known as the Innovative Energy Storage Tax Credit.
Key highlights:
- Covers standalone batteries or batteries paired with solar
- Credit amount depends on battery size and installation year
- Available to homeowners, renters (with approval), and businesses
- Claimed when you file your Colorado state taxes
This tax credit can be worth several thousand dollars, making it a major driver behind the growth of battery installations across the state.
💡 Important note: The credit is subject to funding limits and annual step-downs, so installing sooner rather than later can make a big difference.
Xcel Energy Renewable Battery Connect Program
For customers in Xcel Energy territory, the Renewable Battery Connect (RBC) program provides an additional financial incentive for installing a qualifying battery system.
Instead of a traditional rebate, this program offers ongoing bill credits in exchange for allowing Xcel to use a portion of your battery’s stored energy during peak demand events.
Why homeowners like this program:
- No impact during outages—your backup power is protected
- Monthly or annual bill credits add up over time
- Supports grid reliability and renewable energy adoption
- Works with solar and non-solar battery systems
For many Colorado homeowners, Renewable Battery Connect turns their battery into a long-term earning asset, not just an emergency backup.
Federal 30% Investment Tax Credit (ITC) — Including Leased Batteries
At the federal level, the 30% Investment Tax Credit (ITC) remains one of the most powerful incentives for energy storage.
Under current rules:
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Home batteries qualify for 30% off total installed cost
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Batteries no longer need to be charged solely by solar
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Leased battery systems also qualify, with the incentive applied to the system cost and typically passed on through lower payments
This makes battery storage accessible to homeowners who prefer low upfront costs through leasing or financing options.
Can These Incentives Be Combined?
Yes—and that’s where the real savings happen.
Many Colorado homeowners can stack:
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Federal 30% ITC
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Colorado DR 1307 state tax credit
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Xcel Renewable Battery Connect bill credits
When combined correctly, these incentives can reduce the effective cost of a battery system by 40–60% or more, depending on system size and eligibility.
Because each program has specific requirements, working with a local Colorado installer who understands state tax rules, Xcel programs, and federal incentives is critical.
Why Install a Battery Now?
Between wildfire-related power shutoffs, rising electricity rates, and aging grid infrastructure, battery storage is no longer just a “nice to have.” Incentives like DR 1307 and Renewable Battery Connect are designed to accelerate adoption—but they won’t last forever.
Installing now allows homeowners to:
- Lock in higher incentive levels
- Increase energy independence
- Protect against outages
- Future-proof their homes
Talk to a Colorado Battery Expert
Battery rebates in Colorado can be complex—but they’re incredibly valuable when done right. Golden Solar can help you design a system that maximizes backup power, savings, and incentives, whether you’re adding a battery to existing solar or starting from scratch.
Call us to today to find out how we can help you!