How to Start a Solar Installation Business in Colorado: PV Installer Registration (SB25-165) and Local Solar Licenses

Knowing how to start a solar installation business in Colorado means clearing two layers of requirements. The first is business formation: forming your entity, checking your name, and opening any tax accounts. The second is solar licensing: confirming you are allowed to perform photovoltaic (PV) electrical work under state law and under the rules where you operate. The second layer is where most new solar companies get caught, and it has a near deadline. Under Senate Bill 25-165, contractors already doing PV work must register with DORA as PV installers by December 31, 2026.

This guide covers the steps in the order most businesses should take them, the costs we can verify, and the figures you will need to confirm with the agency that sets them. This is informational content, not legal or tax advice. Solar rules change, and local requirements differ from one city or county to the next. If your situation involves employees, financing, or multiple service areas, talk with a Colorado attorney and a CPA before you file.

What You Need Before You Start

Gather these items before you open any filing portal. Having them ready prevents the most common delays.

• A proposed business name, checked against Colorado Secretary of State records. An LLC name must include a term such as LLC, Limited Liability Company, or Ltd. Liability Company.
• A physical Colorado street address for your registered agent. A P.O. box is not allowed.
• A registered agent who meets Colorado requirements, either yourself or a qualifying person or business.
• A current Colorado driver's license or state ID card for any individual registered agent. The name and ID number must match the credential exactly.
• Written proof of electrical experience, plus PV training certificates if you plan to use training in place of electrician experience.
• NABCEP certification records for each employee you will rely on for the SB25-165 requirement.
• A federal Employer Identification Number (EIN) from the IRS if you will hire employees or open a state tax account.

Step 1: Confirm Which Solar Work Requires Licensing

Senate Bill 25-165 was signed on June 3, 2025 and took effect August 6, 2025. It provides that photovoltaic electrical work on systems under 300 kW may be done only by an electrical contractor or a registered PV installer. If your crews connect panels, wire inverters, or tie systems into a building's electrical service, the law applies to your work.

Your path depends on when you started doing PV work:

• Existing contractor: If you were operating on September 1, 2025, doing PV work, and have at least one NABCEP-certified employee, you must register with DORA as a PV installer by December 31, 2026. As of late October 2026, that deadline is about nine weeks away.
• New business that will work under an electrical contractor license: An electrical contractor is one of the two groups allowed to perform PV work. Confirm that your license covers the PV scope with DORA before you bid jobs.
• New business without an electrical license: Ask the State Electrical Board at DORA how a new applicant qualifies as a PV installer, which exam applies, and how PV training may substitute for electrician experience. Get that answer in writing before you perform PV work.

The State Electrical Board may charge a registration fee, but this guide does not state an amount. Check with the State Electrical Board at DORA for the registration fee, exam requirements, and rule dates.

Step 2: Choose and Reserve Your Business Name

Search your proposed name on the Colorado Secretary of State's business search. The name must be distinguishable from existing names on state records. Punctuation and capitalization do not count, so ABC Inc and abc inc are treated as the same name. Choose a name you can live with on trucks, contracts, and permit applications, because changing it later means new filings.

If you need time before filing, you can reserve the name for 120 days for a $25 fee. Details are in the Secretary of State's entity names FAQ.

Step 3: Form Your LLC or Corporation and Appoint a Registered Agent

Colorado has no general state business license, so forming your entity is your first state filing. Most business documents must be filed online through the Secretary of State's online filing system, which processes filings in real time once payment clears. Paper-only documents are the exception and take about 7 to 10 business days.

• LLC: File Articles of Organization for a Limited Liability Company. The filing fee is $50.
• Corporation: File Articles of Incorporation for a Profit Corporation. The filing fee is $50.

Which structure fits depends on your owners, your liability exposure, and your tax position, so settle that with your attorney and CPA before you file.

Every entity must name one registered agent who has agreed to serve. The agent address must be a physical Colorado street address where documents can be received during normal business hours. An individual agent must be at least 18, hold a current Colorado driver's license or state ID card, and either live in Colorado or have a usual place of business there. If the person has no Colorado identification, they can request an agent passcode from the Secretary of State, which expires 45 days after it is issued.

Step 4: File a Trade Name If You Use a Different Name

If you will market under a name other than your legal entity name, file a Statement of Trade Name. Trade names are filed statewide with the Secretary of State, not with your county. The fee is $20 to file online and $5 to renew. See the trade name FAQ.

Step 5: Register with DORA for PV Work

The Department of Regulatory Agencies (DORA) licenses electricians and plumbers at the state level. Your PV path runs through the State Electrical Board. Work through it in this order:

1. Confirm which group you fall into under SB25-165, using Step 1.
2. Gather NABCEP certification records for the employees you are relying on, and confirm each is current.
3. Complete the PV installer registration with DORA by December 31, 2026, following its current process and paying any fee the board sets. Check with the State Electrical Board for the fee amount and rule dates.
4. Save copies of everything you submit and the confirmation.

For general electrician licensing details, see the electrician and contractor guides on this site.

Step 6: Get Local Solar Licenses and Permits

Colorado does not license general contractors, roofers, HVAC contractors, handymen, or home inspectors at the state level. Cities and counties, through their building departments, do. Your solar license may therefore come from the jurisdiction where the job sits. Current examples include:

• Fort Collins: licenses solar contractors for water and PV work and requires NABCEP certification.
• Boulder County: the Class M license includes solar PV. The fee is $150 and the term is 3 years.
• Pikes Peak Regional Building Department: has a solar energy contractor class, Building Contractor F. Check with the RBD for its PV scope and fees, because the class may not match every job you plan to do.

Build a list of every jurisdiction where you plan to work, then call each building department to confirm the license class, fee, renewal term, and permit process. Ask about permit fees and inspection scheduling at the same time.

Step 7: Open Tax Accounts and Understand Solar Sales Tax

You need a Department of Revenue account if you collect sales tax or withhold tax from employees. Apply through the Department of Revenue's sales tax license page. The state sales tax rate is 2.9%, plus any special district taxes. Home-rule cities, including Denver, Aurora, Colorado Springs, Boulder, and Fort Collins, collect and license their own city sales tax, so a state sales tax license does not cover sales inside them.

Solar has a specific rule. Components used to produce alternating current electricity from a renewable source, including solar modules, racks, inverters, and balance of system parts, are exempt from state sales and use tax under C.R.S. 39-26-724. The exemption does not cover labor, energy storage, or remote monitoring. Services are generally not subject to state sales tax, but the exemption itself is limited to equipment, so confirm how to itemize your invoices. Home-rule cities and special districts have their own rules, so check each one before you quote a job.

Step 8: Plan Around Utility Incentives and Net Metering

Residential solar incentives, rebates, and net metering depend on the customer's utility. Check the customer's utility and the Colorado Energy Office before you describe any incentive in a proposal. Program terms change, and an outdated rebate figure in a sales pitch can create a dispute with a customer.

Ongoing Costs and Deadlines

Item	Agency	Amount	Notes
Name reservation	Secretary of State	$25	Holds the name for 120 days
LLC Articles of Organization	Secretary of State	$50	Online filings process in real time
Corporation Articles of Incorporation	Secretary of State	$50	Same filing process
Statement of Trade Name	Secretary of State	$20 to file, $5 to renew	Filed statewide
Periodic Report	Secretary of State	$25	Due yearly in your periodic report month. A new entity files none in its first year. You may file from two months before to two months after that month without penalty.
PV installer registration	DORA, State Electrical Board	Check with DORA	Deadline December 31, 2026 for qualifying existing contractors
Colorado sales tax license	Department of Revenue	Check with DOR	Needed if you collect sales tax
Local solar license or permit	City or county building department	Varies by jurisdiction	Boulder County Class M is $150 for 3 years

Common Mistakes to Avoid

• Missing the December 31, 2026 deadline. Holding a NABCEP certificate is not the same as being registered. The DORA registration is the step that counts.
• Assuming the state license covers local solar. Colorado issues no general state business license, and each city or county license is separate.
• Relying on a state sales tax license inside a home-rule city. Denver, Aurora, Colorado Springs, Boulder, and Fort Collins collect their own city sales tax.
• Using a P.O. box as the registered agent address. The address must be a physical Colorado street address.
• Treating a near-identical name as available. Punctuation and capitalization do not make a name distinguishable.
• Forgetting the periodic report after year one. Your first report is due in the second year, and an entity that does not file becomes Delinquent.

Tips for a Smoother Launch

• Sequence your filings: reserve the name, form the entity, then open tax accounts and submit DORA and local applications under the entity's legal name.
• Call the building department before bidding your first job. Ask which license class covers PV, what experience proof it requires, and how permits work.
• Keep a compliance file with NABCEP certificates, experience records, DORA confirmations, and every local license number.
• The Colorado Small Business Development Center Network can help with business planning, and the SBA Colorado district page lists local resources.

What Results to Expect

A complete, well-organized set of filings may move quickly at the state level, since online Secretary of State filings process in real time. The timing for DORA registration and local licenses is not a fixed number in this guide, so ask each agency for its current processing time before you commit to a start date with customers.

Your results depend on your experience, your insurance, your local licenses, and the work you actually perform. Treat this checklist as a way to organize your launch, not as a guarantee that any filing will be approved on a particular date. Confirm each item with the agency that controls it.

This article is informational only and is not legal or tax advice. Consult a qualified Colorado attorney and CPA about your situation.