Oregon Solar Incentives and Tax Credits (2024)
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Oregon may not sound ideal for solar power due to its often cloudy and rainy weather. However, the state has experienced remarkable growth in solar installations. According to the Solar Energy Industries Association (SEIA), its eco-conscious culture has led to an investment of $2.4 billion in renewable energy as of July 2024.
The Beaver State provides a range of incentives such as tax credits, rebates, and property tax exemptions to encourage its residents to transition to solar power. We’ve researched the industry’s best solar companies and analyzed solar rebates and incentives across the country. See what incentives Oregonians qualify for below.
Overview of Oregon Solar Incentives
Here are the key incentives available in Oregon:
| Incentive | Where It Comes From | What You Get |
|---|---|---|
|
Solar electric incentive rebate program |
State government |
An up-front rebate of either $1,200 or $900, depending on utility company |
|
Local and municipality rebates |
Local utility companies |
Per-watt rebates |
|
Solar + Storage Rebate Program |
State government |
A rebate of up to $1.80 per watt and up to 60% of the net system cost, depending on income |
|
Net-metering |
Local utility companies |
Money back for your excess electricity |
|
Federal solar tax credit |
Federal government |
30% of the system cost claimed on taxes |
Oregon Solar Incentives, Tax Credits, and Rebates
Solar incentives can help you cut the expense of installing solar panels by thousands of dollars. Learn more about Oregon’s solar incentive programs in the next sections.
Solar Electric Incentive Rebate Program
Portland General Electric (PGE) and Pacific Power customers are eligible for Oregon’s solar electric incentive program. This program pays solar users an up-front rebate of $1,200 for PGE customers and $900 for Pacific Power customers. You must own your solar energy system to qualify and work with an approved Energy Trust solar trade ally contractor.
Additional resources:
Local and Municipality Rebates
Numerous other municipalities offer incentive programs if you don’t reside in PGE or Pacific Power’s territories. Some of those include the following:
- The Eugene Water and Electric Board will pay Eugene residents 40 cents per watt with a maximum rebate of $2,500.
- Salem Electric customers can receive a rebate equal to $300 per kilowatt installed up to 50% of project costs or $1,500, whichever is less.
Your solar installer can help you identify local incentives available in your area.
Additional resources:
Solar and Storage Rebate Program
Oregon’s Solar and Storage Rebate Program pays homeowners up to $5,000 for a solar energy system and up to $2,500 for an energy storage system. Rebates are based on income and paid to your Oregon Department of Energy-certified solar contractor. The rebate amount you pay your contractor will apply to your total cost. This also means you won’t need to wait for a rebate check.
Here’s how rebates are awarded by income level:
| Customer Type | Rebate Calculation |
|---|---|
|
Low- or moderate-income homeowners |
$1.80 per watt of installed capacity and up to 60% of the net cost or $5,000, whichever is less |
|
Homeowners not considered low- or moderate-income who are also eligible for an electric utility incentive |
20 cents per watt of installed capacity and up to 40% of the net cost or $5,000, whichever is less |
|
Homeowners not considered low- or moderate-income who are not eligible for an electric utility incentive |
50 cents per watt of installed capacity and up to 40% of the net cost or $5,000, whichever is less |
Additional resources:
Net-Metering
Net-metering is a rebate program that can help system owners earn money while saving on their energy bills. You can sell any excess energy your system generates to your local utility company through a net-metering program. If your system generates more electricity than you need to power your home, utility companies will pay you to send it back to the electrical grid.
All Oregon utility companies except Idaho Power offer net-metering.
Additional resources:
Federal Tax Credit
One of the most lucrative ways to save on solar panels is the federal solar investment tax credit (ITC), also referred to as the Residential Clean Energy Credit. This nationwide program originated with the Energy Policy Act of 2005. It allows you to claim a percentage of your solar energy system’s cost on your federal tax bill. This percentage has changed throughout the years but will remain at 30% until 2033.
Oregon’s average home solar system costs around $15,100, so that’s approximately $4,500 you can claim on your taxes. Only homeowners who purchase their system with cash or take out a loan qualify. Leasing and power purchase agreement (PPA) customers are ineligible because they don’t legally own their systems.
The ITC is a one-time credit, but you can carry it over to the next tax year if you can’t use it all when you file. For example, if you owe $3,000 in taxes the year you install the solar system and get a $4,000 tax credit, you’ll owe $0 on that year’s federal tax bill and reduce the next year’s by the leftover $1,000.
You can claim the solar tax credit when you file your yearly federal tax return. Let your accountant know in advance. You must fill out IRS Form 5695 if you manage your taxes yourself.
Oregon Solar Costs
The average solar panel cost in Oregon is $3.02 per watt. The typical cost range for a solar system in Oregon is $12,835 to $17,365, with an average total system cost of $15,100. That’s before applying tax credits and rebates that can shave off several thousand dollars.
Is Going Solar in Oregon Worth the Investment?
We recommend going solar in Oregon to reduce your energy expenses and carbon footprint. Going solar in Oregon costs less than it does in most states, making it cost-effective to switch to a solar energy source to save on electricity bills. EnergySage estimates that Oregon homeowners can save an average of $14,829 in utility costs over 20 years.
Our Recommendation
Take advantage of Oregon’s solar incentives to reduce costs if you’re considering going solar. Your installer can help you identify and understand the tax credits and rebate eligibility. We recommend SunPower, Blue Raven Solar, and Tesla Solar for their reputations, comprehensive warranties, and high-performance product selection. Before choosing a company to tackle your solar project, we suggest getting at least three quotes to compare pricing.
How We Chose the Top Solar Companies
We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products. We weighed several significant factors, including the quality and type of solar panels offered, the customer support network, warranty lengths and limitations, and additional benefits such as mobile apps for monitoring and customer service.
Speaking directly to representatives, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.
We evaluated each provider based on its rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.
Read more: Our Methodology