Oregon Solar Incentives, Tax Credits & Rebates

Oregon Solar Incentives

State and local financial incentives exist in Oregon, but the Federal Solar Investment Tax Credit (ITC) remains the most important factor in reducing the overall cost of solar energy.

With the ITC, you can deduct 30% of the total cost of the system, including hardware, labor and permits, from your federal income tax. For example, for a $20,000 system, you could get a $6,000 credit when you file your taxes.

The ITC decreases to 26% in 2033 and to 22% in 2034.

The solar tax credit is not a deduction or offset—you must claim it on your federal tax return in the year your solar system was active. To do this, you must complete Form 5695. The balance is also nonrefundable, so it carries over to subsequent years if your balance exceeds the amount you owe in federal taxes.

If you work with Portland General Electric or Pacific Power, you can get a down payment rebate of $1,200 or $900, respectively (provided you work with a licensed contractor and own your own solar system).

Depending on where you live, you can take advantage of a variety of incentives from NW Natural, Cascade Natural Gas or Avista, as well as citywide programs.

For example, the Eugene Water and Power Board offers rebates based on the capacity of your system (40 cents per watt) up to a maximum rebate of $2,500. Salem Electric customers receive a rebate of $300 per kilowatt installed up to $1,500 (or 50% of the project cost, whichever is less).

Carla from Talent benefited from financial incentives when she went sunnier a few years ago.

"They're not great, but they sure do help," he said. "And then we got tax credits for a year, and we'll probably get more tax credits next year, and then they might expire."

Oregon Residential Solar Incentives

The Oregon Solar + Storage Rebate Program is the state's largest solar incentive program to date. The state previously had a tax credit that covered part of the cost of installing solar panels until the end of 2017, but that program has since ended. Similarly, the Oregon Department of Energy's Small Energy Loan Program has been suspended since 2015.

Make sure you qualify for all the financial incentives you can expect. Marge from Ashland tells us that she "received a solar wheel award that includes a generous credit from the city for the solar installation. However, the board has determined that only two of our 23 panels count toward the credit."

This is not the direct fault of the solar installation company. Still, Marge said the delegate "shouldn't give too much credit."

	type of encouragement	The amount of the incentive	the boss	availability
Solar Energy + Storage Rebate Program	discount program	various	Oregon Department of Energy	at the state level
Solar energy at your fingertips	discount program	$5,400 to $6,000 per home	Oregon Department of Energy	PGE and Pacific Power customers
Private renewable energy projects	Grant program	various	Oregon Energy Fund	PGE and Pacific Power customers
Solar Power Incentive Program	discount program	various	Oregon Energy Fund	PGE and Pacific Power customers
New Home Incentive Program	discount program	$1,123 - $4,085	Oregon Energy Fund	PGE, Pacific Power, NW Natural, Cascade Natural Gas and Avista customers
New build program	discount program	various	Oregon Energy Fund	PGE, Pacific Power, NW Natural, Cascade Natural Gas and Avista customers
Home energy solutions for existing homes	discount program	$400 to $500 for a solar project	Oregon Energy Fund	PGE, Pacific Power, NW Natural, Cascade Natural Gas and Avista customers
Ashland PV Utility Rebate Program	discount program	$0.25/watt up to $5,000	Ashland Electrical Services Department	People of Ashland
Incentives for new construction in the city of Ashland	discount program	various	City of Ashland	People of Ashland
EWEB Solar Program	discount program	Up to $2,000	Eugene electrical and hydraulic panels	Yevgeny is a resident
Salem Photovoltaic Program	discount program	50% of project cost or $1,500	Salem Electric	Salem people
Incentives for Renewable Energy in the Lincoln Central Community Area	discount program	$500/kW DC, up to $2,000	Popular amenities in the Lincoln Central neighborhood	Residents of Lincoln Center

Green Country: Oregon ranks 3rd

Oregon Solar Deductible + Storage Program

OSSRP is committed to making solar energy affordable, especially for low- and moderate-income people. You receive this discount as a discount on the net price of the order. Rebates are available to Oregon Department of Energy (ODOE) approved contractors after installation.

Residential customers can save up to $5,000 on solar energy and $2,500 on solar storage. Low-income residents can save up to $30,000 on solar and $15,000 on proper storage. At least 25% of the funds that are deducted annually are assigned to low-income categories of the population.

Discounts on solar panels.

Residents eligible for the utility credit: $0.20 per watt DC (direct current) (up to $5,000 or 40% of net cost, whichever is less)
Residents not eligible for utility incentives: $0.50 per watt DC (up to $5,000 or 40% of net value, whichever is less)
Low and moderate income: $1.80 per DC watt (up to $5,000 or 60% of net cost, whichever is less)
Low-income service provider: $0.75 per DC watt (up to $30,000 or 50% of net cost, whichever is less)

Discount on energy storage

Residents: $300 per kWh of energy storage capacity installed (up to $2,500 or 40% of net cost, whichever is less)
Low-income residents: $300 per kWh of installed energy storage capacity (up to $2,500 or 60% of net cost, whichever is less)
Low-income utility providers: $300 per kWh of installed energy storage capacity (up to $15,000 or 60% of net cost, whichever is less)

What do you know about net metering in Oregon?

In Oregon, if your solar panels produce extra energy, you'll get a full credit on your bill. This "extra" energy can be used later - national electricity metering laws allow you to get a credit for the excess electricity your system feeds back into the grid. This helps offset some of the costs over time.

How does spot trading work?

After the solar system was installed, the local utility company replaced the electric meter with a two-way grid meter. The new meters record the power taken from the user and the power fed into the grid.

Find out: What is a grid-connected solar system?

Once connected, you will only pay the net difference between the electricity you consume and the electricity you produce. If you generate more energy than you use in one month, you won't see a kilowatt-hour charge on your bill, just the base utility rate, which is usually around $12.

For example, solar panels generate 200 kWh of energy per month. Here are three scenarios that can be measured in pure meters.

	Scenario 1	Scenario 2	Scenario 3
Energy is consumed	200 kW/h	100 kWh	500 kW/h
Clear meter reading	0 kWh is taken from the grid	100 kWh have been credited to your account	300 kWh is taken from the network
You pay for electricity

In the first scenario, you can basically break even, leaving no energy costs. In scenario 2, you earn more than you use, so you get a credit on your next bill. In scenario 3, you need more power than you produce, so you buy teams from your local utility (like PGE or Pacific Power).

Turning the sun into savings

Excess energy is converted into kWh credits for future bills (as in scenario 2 above). These credits can be accumulated and used during less sunny periods, such as the coldest months in Oregon.

This is a great program that we can take advantage of, - said Carla Talent. "I'm not worried about using the energy I have," he says. “And we produce more energy than our homes use. Then it accumulates and therefore can be used in winter.

Oregon Solar Resources

Here are some additional resources to help you go solar in Oregon.

state resources

More local incentives

» Manual: Solar Panel Installation Guide

Find a solar company in Oregon

Compare popular solar companies in Oregon below. To learn more, read our guide to finding the best solar company.

Sunny	sunrise	Solar Blue Crew
primary	Sunny	Read the comments	2166 customer reviews 2166 opinions	Free consultation	Payment options Cash, rent and loans	guarantee 25 years (system)
primary	Buying solar energy	Read the comments	Customer rating 72 reviews 72 reviews	Free consultation	Payment options money loan	guarantee various
primary	sunrise	Read the comments	Customer ratings 2596 reviews 2596 reviews	Free consultation	Payment options Cash, rent and loans	guarantee Depending on the system
primary	Solar Blue Crew	Read the comments	Customer ratings 21 reviews 21 reviews	Free consultation	Payment options money loan	guarantee 25-year manufacturer's warranty plus 10-year labor warranty

Adaptable

Select the information you want to see about each brand. At least one option must be selected.

questions and answers

Can I get free solar panels in Oregon?

You can lease or contract your electricity for little or no upfront cost. However, nothing is truly free. A solar lease requires a monthly fixed rate rental; PPA charges per unit of electricity.

» Other: Renting solar power vs. PPP

How to pay for solar panels?

You can pay cash, but most people finance solar panels. A solar loan works like other types of loans: there's an application and approval process, and you can pay it back over time (with interest). When considering a solar loan, lease or PPA, always ask:

Is there a down payment?
How much will I pay per month?
When and how much do monthly payments increase?

Is there a program in Oregon for low income residents to go solar?

In addition to the Solar+ storage rebate program, Oregon has another rebate program, Solar Inside Reach, designed specifically for low-income residents. It is available to PGE and Pacific Power customers whose annual gross income is below a certain threshold ($58,688 to $155,746, depending on the number of residents living in the home).

Solar energy within the incentive amount

Pacific Energy: $1.00/watt, up to $6,000 per household
PGE: $0.90 per week, up to $5,400 per stay

To qualify, your panels must be new, certified and have a minimum 20-year warranty; Transformers require a warranty of at least five years.

How much can I save on solar panels in Oregon?

The average lifetime savings is $23,058 with solar in Oregon if you pay cash, while the cost of energy without solar is $40,348. Considering the average monthly electric bill is $106.49, if you purchase enough panels, you can save about $100 a month.

Which facilities participate in net metering in Oregon?

State law requires all facilities to maintain clean records in accordance with Oregon Revised Statute 757.300.

What is REC?

Renewable Energy Certificates (RECs) show the environmental benefits of generating electricity from renewable sources such as the sun. REC is different from net metering balance. Also known as a "green label," REC can be seen as proof that utilities and companies are meeting their renewable energy goals.

You earn one REC for every 1,000 kWh (or 1 megawatt hour) of electricity your solar produces. Each REC is usually worth about $1. When you sell your home or business, the new owner inherits the solar panels and associated electrical records.

Are there any disadvantages to using solar energy?

Several Oregon solar customers have told us about post-installation issues, both with the city and their utility company.

For example, Yevgena Zeferina says that the installation is good, but the system is difficult to manage.

"It's good against Sonron. It's PGE," Zeferino said, adding that they paid the entire loan and electricity bill while waiting for the system to be activated. "I wish they would have told you in advance how long the process would take for PGE."

My neighbor in Corbett had a similar problem.

"All the PV panels on my roof are broken," Gary told us last year, and Generac Power Systems has done nothing to fix the problem.

Read more: Advantages and disadvantages of solar energy

Bottom line: How much do solar panels cost in Oregon?

Installing residential solar panels can cost anywhere from $10,000 to $30,000 or more, although individual costs vary widely. The ConsumerAffairs research team conducted an in-depth analysis to determine the cost of solar in Oregon and the average cost of solar in other states.

The cost of solar energy in Oregon compared to neighboring states

	starting price *	CII value (30%)	Average cost per watt	Payment term*	25 years of savings
Oregon	$17,290	$5,187	2.60 USD	14 years old	$15,648
Washington	$26,900	8070 dollars	2.69 USD	16 years old	$10,846
Idaho	$18,200	$5,460	2.60 USD	14 years old	$11,478
California	$16,380	4914 dollars	2.73 US dollars	8 years old	30 thousand dollars

* After ITC, if paid in cash

Source of the article

ConsumerAffair editors rely primarily on government data, industry experts and original research from other leading publications to inform their work. Specific resources for this article include:

Database of State Incentives for Renewable Energy and Efficiency (DSIRE), "The Oregon Program." Retrieved August 8, 2023
EcoWatch, "Solar Panel Costs in Oregon." Retrieved August 8, 2023
US Environmental Protection Agency, "Summary of the Renewable Energy Inflation Reduction Act Provisions." Retrieved August 8, 2023.
Oregon Solar Solar Industry Association. Retrieved August 7, 2023.
Oregon Department of Energy, "Energy Loan Program." Retrieved August 8, 2023.
Oregon Department of Energy, "Oregon Solar + Storage Rebate Program." Retrieved August 8, 2023.
Oregon Energy Foundation, Solar for Your Home. Retrieved August 8, 2023.
Oregon Energy Foundation, Clean Metering. Retrieved August 8, 2023.
Oregon Energy Foundation, "Understanding REC." Retrieved August 8, 2023.
Energy Information Administration, "Mid-Month Family Budget." Retrieved August 8, 2023.

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Oregon Solar Incentives, Tax Credits & Rebates