Solar incentives in Oregon

Oregon has statewide and local financial incentives, but the federal solar investment tax credit (ITC) is still the biggest factor in reducing your overall costs going solar.

By using the ITC, you can deduct 30% of the system's total cost — including equipment, labor and permits — from your federal income taxes. For example, for a $20,000 system, you can get a $6,000 credit when you file your taxes.

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

The solar tax credit is not a rebate or refund — you must claim it when you file federal taxes in the year your solar panel system becomes operational. To do this, you have to complete Form 5695. The credit is also nonrefundable, so it's applied to future years if your credit exceeds the amount you owe in federal taxes.

If you're with Portland General Electric or Pacific Power, you can get an upfront rebate of $1,200 or $900, respectively (as long as you partnered with an approved contractor and own your solar system).

Depending on where you live, you can take advantage of more incentives from NW Natural, Cascade Natural Gas or Avista, plus city-level programs.

For example, the Eugene Water and Electric Board offers a rebate based on your system’s output (40 cents a watt) with a max rebate of $2,500. Salem Electric customers receive a rebate equal to $300 per kilowatt (kW) installed — up to $1,500 (or 50% of your project costs, whichever is less).

Karla in Talent took advantage of financial incentives when she went solar a couple of years ago.

“They weren’t huge, but they certainly helped out,” she said. “And then tax deductions, we’ve gotten those for this year, and we’ll probably get more of a tax deduction next year, and then it will probably be used up.”

Residential solar incentives in Oregon

Oregon’s Solar + Storage Rebate Program is the biggest statewide solar incentive right now. The state previously had a tax credit that covered a part of the cost of solar panels installed before the end of 2017, but the program has expired. Similarly, the Oregon Department of Energy’s small-scale energy loan Program has been on hiatus since 2015.

Confirm that you actually qualify for all the financial incentives you’re expecting. Marge in Ashland told us she was “quoted a price for our solar that included a generous credit from the City for installing solar. However, the City has decided that only two of our 23 panels count for the credit.”

This isn’t the solar installation company’s fault directly. Still, Marge said the rep “should not have quoted that much of a credit.”

» GREENEST STATES: Oregon ranks No. 3

Oregon Solar + Storage Rebate Program

The OSSRP program seeks to make solar more accessible, especially for low- and moderate-income residents. You get these rebates as discounts on the system's net cost. Rebates are given to approved contractors by the Oregon Department of Energy (ODOE) after installation.

Residential customers can save up to $5,000 on solar and $2,500 on battery storage paired with solar. Low-income residents can save up to $30,000 on solar and $15,000 for paired storage. At least 25% of the rebate funds are reserved for low-income groups each year.

Solar photovoltaic (PV) rebates

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

Energy storage rebates

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

What to know about net metering in Oregon

In Oregon, if your solar panels produce extra power, you get full credit for it on your bills. This "extra" power can be used later — the state’s net metering law lets you earn credit for the excess electricity your system sends back to the grid. This helps offset some of the costs over time.

How net metering works

Once your solar system is installed, your local utility company replaces the current meter with a bidirectional net meter. The new meter records both power taken from the utility and power fed back into the grid.

» LEARN: What are grid-tied solar systems?

Once connected, you’ll pay only for the net difference between the electricity you use and what you generate. If you produce more power than you consume in a month, you won’t see any kilowatt-hour charges on your bill — just the basic utility service fee, which is usually around $12.

For instance, let’s say your solar panels generate 200 kWh of energy in a month. Here are three scenarios that might be measured by a net meter.

In Scenario 1, you essentially “break even,” so there’s no charge for power. In Scenario 2, you generated more than you used, so you get a credit toward your next bills. In Scenario 3, you needed more power than you generated, so you buy the difference from your local utility (e.g., PGE or Pacific Power).

Turning sunshine into savings

Excess energy turns into kilowatt-hour credits on your future bills (like in Scenario 2 above). These credits can accumulate and be applied during less sunny periods, like Oregon’s colder months.

It’s a great program to take advantage of, Karla in Talent told us. “I don’t worry about using the energy that I have,” she said. “And we make more than the energy our house uses. So, that gets banked, and then we can use that in the winter.”

Solar resources in Oregon

Below are some additional resources that can guide you through transitioning to solar in Oregon.

State resources

• Energy Trust of Oregon’s Watt Plan
• Oregon Solar Dashboard
• Oregon Department of Energy
• Oregon Solar and Wind Easements/Rights Laws
• Energy Trust of Oregon’s New Buildings Program
• EPS New Construction
• Renewable Energy Certificates (RECs)
• Solar + Storage Rebate Program for Homeowners, Low-Income Service Providers and Contractors

More local incentives

• Ashland Electric Utility Photovoltaic Rebate Program
• Lane Electric Cooperative’s Residential Weatherization Programs
• Custom Renewable Energy Projects (PacifiCorp and Portland General Electric)
• Eugene Water & Electric Board Solar Electric Program
• Salem Electric Energy Efficiency Programs
• Central Lincoln Renewable Energy Programs
• Rural Renewable Energy Development for Businesses

» GUIDE: Solar panel installation guide

Find solar companies in Oregon

Compare popular solar companies available in Oregon below. Read our guide on finding the best solar companies for more.

Bottom line: How much are solar panels in Oregon?

Installing residential solar panels can cost between $10,000 to $30,000 or more, though individual costs vary significantly. The ConsumerAffairs research team conducted an in-depth analysis to determine how much it costs to go solar in Oregon and average solar costs in other states.

Oregon solar costs vs. nearby states