Guide to Oregon Solar Incentives, Rebates, & Tax Credits [2024]

Oregon is known for abundant sunshine and its cloudy and rainy weather, making it ideal for solar power. However, the initial expense of switching to solar energy is high. For this reason, the federal government and many utility companies offer financial incentives and rebate programs to reduce the cost of solar panel system installation. Some popular Oregon solar incentives include Oregon Solar + Storage Rebate, Solar Within Reach, and many local incentives in cities like Eugene.

Jackery Solar Generators are ideal solutions for experiencing solar energy with a limited budget. These portable and powerful battery-powered generators can supply electricity to household appliances for long hours, helping you reduce your monthly electricity bills. In addition, eligible homeowners can claim up to 30% of the total cost under the Residential Clean Energy Credit. For example, investing in the Jackery Solar Generator 2000 Plus Kit (4 kWh) will help you earn up to $1139.7 in tax rebates.

Oregon Solar Incentives in 2024

While Oregon has cloudy and rainy weather, the US state has experienced growth in solar installations over the past few years. The Solar Energy Industries Association (SEIA) revealed that Oregon's eco-conscious culture has led to an investment of $2.4 billion in renewable energy. The state provides many solar incentives, such as rebates, tax credits, and property tax exemptions, to encourage homeowners to transition to solar power. Here's a table that compares various solar rebates and incentives in Oregon.

Federal Solar Tax Credit (ITC)

The Federal Solar Tax Credit also known as Investment Tax Credit depends on the investment in the solar panel system. It is available to both residential and commercial customers in Oregon. Presently, the ITC allows a deduction of 30% of the total installation cost of the solar energy system between 2022 and 2032.

If you install a $10,000 solar panel system, you are entitled to claim $3000 in federal tax return. Remember, the ITC is applied to the total cost of the system, including labor and equipment. It is only available to customers who own their solar system rather than lease it. The ITC will reduce to 26% in 2023 and 22% in 2034. You can claim the tax credit by downloading and filling out IRS Form 5695.  

Solar + Storage Rebate Program

The Oregon Solar + Storage Rebate Program benefits residential and low-income customers in Oregon. Eligible customers and approved contractors can receive up to $5,000 for solar panels and $2,500 for battery storage. The rebate amount will depend on the solar panel system size, income status, and whether you are entitled to other incentives from utility companies.

In order to receive the rebate amount, you will need to install solar power panels and a battery storage system simultaneously—and that too from an approved contractor. The battery you install should have islanding capability, which should serve as a backup power source to the home when the grid is down. Let's compare solar and storage rebate amounts for different customer types.

Source: State of Oregon: INCENTIVES - Oregon Solar + Storage Rebate Program: Homeowners

Note: The net cost is calculated when we subtract the financial incentives offered by the utility companies or the Energy Trust of Oregon from the total project cost. However, the rebate amount cannot exceed $5000.

Solar Within Reach

Unlike other Oregon solar incentives that are available to most residents, Solar Within Reach is an income-qualified rebate program. It provides cash incentives to qualified homeowners, though the exact amount will depend on the number of residents living in the house and the gross annual household income.

You must own a residence from the following categories: single-family home, multi-family home, floating home, condo, and manufactured home. Additionally, you must work with an Energy Trust-approved solar trade contractor. Depending on the number of residents in the house, the gross annual income should not exceed the program limits.

Source: Solar Within Reach - Energy Trust of Oregon

Note: The amount of incentive you receive will directly depend on the electric utility company and the solar system size. For example, if you are a Portland General Electric customer, you can earn up to $5400 ($900 per kW for solar) and up to $10,000 ($750 per kW for storage). On the other hand, if you are a Pacific Power customer, you can earn up to $6000 ($1000 per kW for solar) and $10,000 ($750 per kW for storage).

Solar Electric Incentive Program

Oregon's top utility companies—Portland General Electric (PGE) and Pacific Power—offer financial incentives to their customers. The program pays an upfront rebate of up to $1200 to PGE customers and $900 to Pacific Power customers. To qualify, you must work with an approved Energy Trust solar trade ally contractor and purchase the solar energy system.  

Portland Clean Energy Fund (PCEF)

The Portland Clean Energy Fund (PCEF) is an environmental initiative in Oregon created and led by communities of color. It provides grants to nonprofits to assist with installing solar energy systems. To submit an application and receive grants, you must visit the official PCEF website.

Renewable Energy Systems Exemption

Many US states offer solar equipment installation sales and property tax exemptions, making renewable energy available to Oregon residents. You won't pay any additional sales tax on solar energy installation, helping you save thousands of dollars over the equipment's lifespan.

Even though the solar panels will increase the home's value, they won't lead to additional property taxes. The average property tax rate in Oregon is 0.82%, and the average system costs $31,160. This increases the annual savings to $255 without batteries and $378 with batteries. In order to be eligible for the solar property tax exemption, you need to install a solar system and confirm that it can offset your onsite electricity consumption.

Oregon Local Incentives

In addition to offering statewide incentives, many cities in Oregon offer local incentives to encourage solar panel systems.

Eugene Water & Electric Board: The EWEB provides a rebate amount of $0.40 per watt installed or up to $2000 (whichever is less) to qualified customers. These solar incentives in Oregon are offered on a first-come, first-served basis.

Salem Electric: The qualified customers will earn a rebate of $300 per kW installed rebate up to $1500 or 50% of the project costs. The solar systems that are net metered, comply with Salem Electric Net Metering Policy, and have a capacity of nearly 25 kW or less are qualified.

Ashland Electric Utility PV Rebate Program: In Ashland, residents can receive a rebate or grant of up to $600 for installing a solar panel system.  

Central Lincoln PUD Renewable Energy Incentive Program: The utility customers are entitled to receive up to $2000 or $500 per kW. You need to submit the project for review and seek approval before installation.  

Oregon Net Metering

Net metering in Oregon is a helpful program that can save money and reduce the payback period on a solar energy installation. It allows you to sell excess energy generated by the solar panels to the grid in exchange for credits on the utility account.

When you install grid-tied solar systems, the utility provider will also install a two-way electricity meter. It will measure the electricity flow into the home and energy flow from solar panels into the grid. You'll have to pay for that difference if you have used more energy than supplied back to the grid. On the other hand, if you put more energy into the utility grid than used, you'll receive credits on the account.