Oregon Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in Oregon?

Solar rebates in Oregon

There are several generous solar rebates that you might be eligible for, depending on where you live in Oregon. Most of these rebates require a pre-installation approval process, state-certified contractors and local inspections.

• Salem Electric offers a solar rebate of $300 per kW, up to $1,500 or 50% of the project cost, for residential and general service customers installing solar systems 25 kW or smaller. Systems must follow the utility’s net metering policy and meet Oregon Department of Energy equipment requirements.
• Central Lincoln PUD offers renewable energy rebates for customers who install solar panels up to $2,000. Solar water heating and battery storage can also get $800 to $2,000. Projects must be approved before installation and follow the utility’s net metering requirements. Incentives are limited and depend on available funding.
• Solar Within Reach offers larger solar and battery rebates for income-qualified homeowners who are customers of Portland General Electric or Pacific Power. Incentives can reach up to $5,500 for solar and $6,500 for battery storage (PGE) or $5,500 for solar and $5,500 for batteries (Pacific Power). The program is available only to income-eligible homeowners who live in the property.
• The City of Ashland offers a solar rebate of $600 for residential and commercial customers who install qualifying photovoltaic systems. Systems must be at least 2.5 kW, net-metered and installed at a property where the system owner is the tenant, with adequate solar exposure (75% or higher).

Contractor requirements

To qualify for most incentives:

• Installation must be done by a contractor on the Oregon Department of Energy approved list.
• Customers must get at least two bids before starting a project.
• Contractors must meet licensing and certification standards (often NABCEP-certified professionals)

Energy Trust of Oregon New Homes Incentives Program

Oregon’s New Homes Incentive Program offers builders up to about $4,100 for constructing homes that are at least 10% more energy-efficient than a typical new home. Incentives are based on the home’s Energy Performance Score (EPS), which estimates energy use and costs.

Additional incentives may be available for solar panels and other energy-efficient features. Homes must be built by approved Energy Trust trade allies and located within participating utility service areas. The program only applies to homes in specific utility territories in Oregon (e.g., Portland General Electric or Pacific Power).

What to know about net metering in Oregon

Net metering allows homeowners with solar (or other small renewable systems) to use the electricity they produce first and send any extra power back to the grid. In return, the utility credits the homeowner’s bill for that excess electricity, typically at the same retail rate they pay for electricity.

Residential systems are usually capped at 25 kW and sized to match household electricity use.

If your solar panels generate more electricity than you use, the excess is credited to your bill. Any unused credits at the end of the yearly cycle (usually in March) are typically given to utility assistance programs rather than paid out to the homeowner.

Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs) are used to track and verify the electricity generated from renewable resources. RECs are different from net metering credits. They represent the environmental benefits of generating electricity from renewable sources like solar. Also known as “green tags,” RECs can be thought of as proof that utilities and businesses have met renewable energy goals.

In Oregon, the Energy Trust requests a portion of the RECs generated by all incentivized renewable energy systems and delivers them to PGE and Pacific Power for the benefit of the customers who support renewable energy.

Pro tip

Focus on the Solar + Storage Rebate (up to $5,000 for solar and $2,500 for batteries) and net metering as your primary financial drivers. RECs are nice, but they are currently a negligible part of the ROI for Oregon homeowners.

Solar panel costs in Oregon

Average solar panel costs in Oregon generally start between $13,733 and $27,466.

System size is a big cost factor of going solar. A typical Oregon household needs about a 5.9 kW solar system, which costs $16,225 on average. Depending on your energy needs, you might need a smaller or larger system.

Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the total system price.

Average solar panel costs by system size in Oregon

Federal solar loan programs

Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like FHA or VA.

Types of Energy Efficient Mortgages

• FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings, and a home energy assessment is required first.
• VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
• Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.

Commercial solar incentives in Oregon

• The Rural Renewable Energy Development (RRED) Zone Program offers eligible businesses a tax abatement from local property taxes for a three- to five-year period.
• The Making Solar Equitable Program provides larger solar and battery incentives in Oregon for tribes, nonprofits and affordable housing projects. Incentives vary by project type and can reach up to $50,000 for tribal solar projects, $42,000 for affordable housing, $30,000 for nonprofits and $13,500 for battery storage. The program also offers development assistance grants to help plan solar projects. Eligibility depends on project type and utility service area (PGE or Pacific Power).

Compare solar companies in Oregon

Working with a local solar company in Oregon makes it easier to understand local incentives.

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