Did you know that in 2010, Colorado was the first state to create a community solar program? This was done through HB 1342, known as The Community Solar Gardens Act. This design provides access to clean, renewable energy for residents, no matter their income or where they live.

However, despite its early leadership, many states have since outpaced Colorado. Today, 24 states have passed laws that support a community solar program including New York, Massachusetts, Minnesota, and Illinois. As of 2024, Colorado had approximately 210 MW of installed community solar capacity. In contrast, New York has developed over 2,100 MW, enough to power approximately 400,000 homes.

The 2024 Community Solar Modernization Act

In 2024, Governor Jared Polis signed a reform bill, SB24-207, to help streamline the solar farm development process, expand incentives for low-to-moderate income households, and set ambitious goals for community solar growth in the state.

Colorado’s new Community Solar Modernization Act, set to take effect in 2026, is a win for clean energy and for residents looking to save on their energy bills. Modernized community solar in Colorado means:

• More Power, More Access: The law increases the maximum size of each community solar garden from 2MW to 5MW, enough to power up to 2,500 homes per garden.

• Prioritized Affordability: Solar garden’s must have at least 51% its capacity reserved for low-to-moderate income (LMI) subscribers, helping more Coloradans benefit from solar savings.

• Bigger Savings for LMI Households: LMI subscribers are guaranteed at least a 25% discount on their electricity bills.

• • Who Qualifies? In Colorado, you can qualify for higher discounts if you participate in state or federal assistance programs (e.g. SNAP or LIHEAP). You may also be eligible if your income is at or below 80% of the area median income, or 60% of Colorado’s median income.

• Smarter Land Use: New projects are encouraged to be built on brownfield sites or landfills, turning unused and compromised land into clean energy hubs.

• Utility Participation: Larger utility companies will also play a role in expanding access to community solar programs. Under the new law, they must offer at least 50 MW of community solar capacity in 2026, and an additional 50 MW in 2027.

The One Big Beautiful Bill

On July 4, 2025, the One Big Beautiful Bill passed through both chambers of Congress, bringing major changes to federal solar and wind incentives. For community solar developers and financiers, the investment tax credit (ITC) will no longer apply to projects that have not started construction by the end of 2027 – posing challenges for future development. For homeowners considering rooftop solar, the bill ends the 30% residential solar tax credit after December 31, 2025, meaning homeowners must install rooftop systems by year’s end to qualify.

Colorado lawmakers estimate Colorado household energy costs could rise by around $500 per year by 2035 because of new federal policies. While the legislation of the One Big Beautiful Bill complicates solar development, Colorado lawmakers are taking proactive measures to accelerate the development of solar farm projects before the sunset of the tax credit incentives.

While electricity bills may continue to rise over the next decade, you manage losses with a Colorado community solar subscription – a state-incentivized way to save some money each month.

Benefits for Coloradans

If you’ve never heard of community solar before, there are several benefits these programs provide to Colorado residents:

• Electric Bill Savings: Subscribers receive savings on their electric bill for the energy generated by their portion of a local solar farm. They are then invoiced for this energy at a discount.

• Solar Without Rooftop Solar: Residents can access the benefits of solar without installing and maintaining expensive solar panels.

• Easy Environmental Contributions: Subscribers contribute to reducing reliance on fossil fuels and promoting Colorado sustainable energy development.

• Inclusive Access: Works perfectly for renters, apartment dwellers, and anyone whose property isn't suited for rooftop solar.

How can Coloradans participate in community solar?

Nautilus Solar Energy® is an approved community solar provider in Colorado, among other states. In 2024 alone, Nautilus helped Colorado subscribers save more than $3.80 million on monthly electricity bills and generated the energy equivalent of 8,957 gas-powered cars off the road.

Nautilus operates 17 Colorado solar farms, supplying 52% of its power to residential subscribers and 48% to businesses. These farms are located across the state—from Platteville to Denver to Grand Junction.

Conclusion

Colorado launched the nation’s first community solar program and is working to expand access to clean energy and promote the benefits of solar energy with the introduction of Community Solar Modernization Act, passed in 2024. Despite some legislative challenges, Colorado is continuing its pursuit of a cleaner future with community solar and will be critical to building a sustainable and equitable future, accelerating development to maximize benefits before federal incentives disappear.

Interested in how you can take advantage of state-incentivized savings?