Oregon Solar Incentives, Tax Credits and Rebates

Solar rebates in Oregon

Oregon has several solar rebates, but what you qualify for depends on where you live and which utility serves your home. Many programs require you to apply before installation, use an approved contractor and pass a local inspection.

• Oregon Solar + Storage Rebate Program: This is the state’s main residential solar incentive. It offers income-based rebates of up to $5,000 for solar panels and up to $2,500 for battery storage. The program reopened on June 15, 2026, with limited funding, so ask an Oregon Department of Energy-approved contractor whether rebates are still available before moving forward.
• Salem Electric: Residential and general service customers can receive $300 per kilowatt, up to $1,500 or 50% of the project cost. Systems must be 25 kW or smaller and meet the utility’s net metering and equipment rules.
• Central Lincoln PUD: Customers can receive $500 per kilowatt of solar capacity, up to $2,000. Qualifying battery systems may also receive up to $2,000. Projects must be approved before installation, and funding is limited.
• Eugene Water & Electric Board: EWEB offers $0.40 per watt of AC output, up to $2,500, for systems installed by an ODOE-approved contractor. Funding is awarded on a first-come, first-served basis and may run out.
• Solar Within Reach: Income-qualified homeowners served by Portland General Electric or Pacific Power may qualify for larger rebates. Depending on the utility, incentives can reach up to $5,500 for solar and $6,250 for battery storage. You must own and live in the home.
• City of Ashland: Ashland offers a $600 rebate for qualifying solar systems. The system must be at least 2.5 kW, connected through net metering and installed at an eligible property with enough sunlight.

Solar property tax exemption

Qualifying solar systems are generally exempt from added property taxes in Oregon. That means your property tax bill should not increase just because solar panels add value to your home. The exemption is currently authorized for property tax years beginning before July 1, 2029.

Energy Trust of Oregon New Homes Incentives Program

Energy Trust of Oregon offers incentives to builders who construct homes that are at least 10% more energy-efficient than Oregon’s building code. Incentive amounts are based on the home’s Energy Performance Score, or EPS, which estimates its energy use and utility costs.

Energy Trust increased incentives for qualifying projects submitted on or after May 1, 2026, so builders should check the latest payment schedule before estimating savings.

Extra incentives may also be available for solar panels and other energy-saving features. To qualify, the home must be built by an approved Energy Trust trade ally and located in a participating utility area, such as Portland General Electric or Pacific Power territory.

Contractor requirements

To qualify for most solar incentives in Oregon:

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

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).

What to know about net metering in Oregon

Net metering lets Oregon homeowners use the electricity their solar panels produce and earn bill credits for extra power sent to the grid. Those credits are generally based on the retail electricity rate. Residential systems are typically limited to 25 kilowatts (kW).

Unused credits typically expire after a year.

When your panels produce more electricity than you use, the extra power becomes a credit on your utility bill. Credits can roll over from month to month, but any remaining at the end of the annual billing cycle (usually in March) are generally donated to utility assistance programs instead of paid to you.

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.

» RELATED: How solar energy is stored in a battery

Federal solar programs

The 30% federal solar investment tax credit (ITC) is gone for systems installed in 2026 and beyond, but a few federal programs can still help Oregon homeowners offset the cost of going solar.

• Residential Energy Conservation Subsidy Exclusion: Rather than a rebate check, this is a tax rule letting you exclude certain utility-provided energy-conservation subsidies, including some solar incentives, from your taxable income.
• Energy-Efficient Mortgages: An FHA- or VA-backed Energy Efficient Mortgage can let you roll the cost of a solar installation or other energy upgrades into your home loan, based on the energy savings the upgrades are expected to produce.
• Fannie Mae Green Financing: This program is built mainly for multifamily property owners and developers, so it won’t apply to most single-family homeowners, though it may be relevant for larger residential projects in Oregon.

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

Compare solar companies in Oregon

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

Find solar companies by city

• Salem
• Portland

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.

• 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.

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