Quick List of Oregon Solar Incentives

A Guide to Residential and Commercial Incentives

Oregon, a state renowned for its commitment to eco-friendly practices, is enthusiastically embracing the move towards renewable energy, with solar power leading the way. This form of energy not only aids in reducing harmful carbon emissions but can also substantially lower energy costs. To encourage residents and businesses to adopt solar power, Oregon offers a host of financial incentives. In this blog post, we delve into these incentives for both residential and commercial solar installations.

Residential Solar Incentives in Oregon

Residents of Oregon can benefit from considerable state and utility rebates, significantly reducing the cost of installing a home solar energy system and boosting potential solar savings over a 20-year period.

1. Oregon residential energy tax credit (expired): This benefit was offered to homeowners who installed solar panels before December 31, 2017. It provided a credit on Oregon state taxes, assisting in recouping expenses.
2. Solar electric incentive rebate program: Customers of Portland General Electric (PGE) or Pacific Power can benefit from Oregon’s solar electric incentive program. This program offers an upfront rebate of either $1,200 (PGE) or $900 (Pacific Power). To qualify, you must own your system and collaborate with an Energy Trust-approved solar trade ally contractor.
3. Local and municipal utility rebates: Even if you’re not within the service territory of PGE or Pacific Power, Oregon provides local solar rebates to help offset the cost of solar adoption. For instance, in Eugene, the Eugene Water and Electric Board pays $0.40 per watt to solar homeowners, with a maximum rebate of $2,500. If you’re a customer of Salem Electric, you can receive a rebate equal to $300 per kW installed, up to either 50% of project costs or $1,500, whichever is lesser.
4. Net metering in Oregon: Thanks to Oregon’s net metering policies, you’ll receive full credit on your utility electric bills for any excess electricity that your solar panels generate. This surplus power can be “banked” with your utility and drawn from later when you need extra electricity to cover your usage.
5. The federal solar tax credit: Also known as the Residential Clean Energy Credit, this incentive reduces the cost of photovoltaic (PV) solar energy systems by 30% for homeowners who purchase their systems outright.

Commercial Solar Incentives in Oregon

Commercial entities in Oregon also have access to numerous incentives that can cover between 65-80% of the total costs to install and own solar power systems.

1. Federal Tax Credit and Federal Accelerated Depreciation: Businesses in Oregon can receive a Federal tax credit equal to 30% of the total system costs (excluding any utility incentive). This credit can be claimed in the year the system becomes operational or carried forward if the credits exceed the tax liability. Note that after December 31st, 2023, the Federal tax credit for commercial solar is scheduled to drop from 30% to 22% of the installed cost.
2. Federal Accelerated Depreciation: Businesses may depreciate the cost of a solar electric system following the five-year Modified Accelerated Cost Recovery System, providing a tax deduction benefit that offsets up to 25% of the cost of installation.
3. Oregon Utility Cash Incentives: If your solar system is grid-tied, your utility likely provides a cash incentive to assist you in going solar. These incentives vary across utilities.
4. Energy Trust of Oregon Incentives: The Energy Trust of Oregon offers funds for qualifying renewable energy and energy efficiency projects, including commercial customers of Portland General Electric and Pacific Power. The terms and incentive amounts periodically adjust based on Energy Trust revenue and territory. Currently, rates vary between utility and the size of the solar electric system, with a maximum incentive amount of $120,000 in Pacific Power territory and $150,000 in Portland General Electric territory.The cash incentives are generally paid directly to the solar contractor, reducing the total solar system cost. The application for Energy Trust Incentives must be made prior to construction, and there are specific requirements that the solar installation must meet.
5. Other Oregon Utility Incentives: Many of the other electric utilities in Oregon also provide incentives to their customers to install solar PV systems.

It’s an exciting time to go solar in Oregon, whether for residential or commercial purposes. These incentives make solar energy a more accessible and affordable option for everyone. As more people and businesses take advantage of these incentives, the future of renewable energy in Oregon looks bright.