Colorado permitting red tape adds thousands to rooftop solar cost, finds study

Rooftop solar in Colorado is bogged down by permitting costs, said a study by Brown University, Greenhouse Institute and Watson Institute.

Permit costs and red tape add significant costs to rooftop solar installations. The study estimates that families buying a new system could save $1,400 on the cost of a new system by 2030, and $3,200 to $3,300 by 2040.

The study estimates that average Colorado households can save $700 to $1,300 in electricity bills each year by switching to solar.

Complexity of permitting is one of the main issues for solar installers in the state. Submission requirements vary widely by local governments, each with its own processes and preferences. The same goes for certification and licensing requirements, which occur at the local level, creating a complex web of accreditation, some of which carry a heavy price tag.

Due in part to limited local government staffing, communication can be limited and inspection scheduling can be difficult, said the study. In Arapahoe County, for example, initial permit review takes an excess of 10 weeks and sometimes lasts six months or more when changes or corrections need to be made.

The study found that by streamlining and standardizing Colorado’s rooftop solar permitting systems, an additional 32,000 to 34,000 home solar systems can be installed by 2030 and 283,000 to 329,000 by 2040, an increase of 52% to 58% above business-as-usual.

Based on the $700 to $1,300 estimated average annual savings, the additional households installing solar by 2030 as a result of smart permitting could save a combined $1 billion on bills, said the study.

The city of Denver now uses the Department of Energy-developed SolarAPP+, a tool that generates instant automated permits. Nationwide, SolarAPP+ has supported 181 communities with over 46,500 permits issued, 302,350 kilowatts approved, and 46,500 estimated hours saved in review time.

“Denver’s implementation of SolarAPP+ has been a tremendous help in streamlining the adoption of rooftop solar within the city. The new system allows for instant approval of nearly all our residential permits so we can provide customers with quicker installation timelines,” said Ben Long, co-owner of Namaste Solar.

The study estimates that the increase in demand for new solar installations could also create 560 to 610 jobs across the state by 2030, and 1,600 to 1,800 jobs by 2040.

Find the full independent study here.

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