Cost of Solar Panels in Oregon (2026)

How much do solar panels cost in Oregon?

With professional installation, on average, a 7-kilowatt residential solar panel system costs $19,226 in Oregon. That price drops to $13,192 after using the full federal solar investment tax credit (ITC).

The size of your solar panel system is a big factor in your overall solar costs. A typical Oregon household needs a 5.9 kW system to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel costs by system size in Oregon

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. One resident, Gary in Corbett, Oregon, told us he paid more than $35,000 for a solar panel system with a backup battery.

Are solar panels worth it in Oregon?

We’ve talked to thousands of people who have already gone solar across the country. It’s generally worth it in Oregon if you like the idea of lower monthly utility bills and more energy independence.

Solar panels “have an amazing value,” Melanie in Beaverton, Oregon, said. “You will see your utility drop to either zero or significantly lower.” Assuming an upfront purchase, it takes about 12.77 years to break even (when your savings with solar panels make up for the cost).

Another resident, Karla in Talent, Oregon, financed a system in 2021. When we followed up in 2023, she said her bills are “pretty much $0 except for a couple of months during the winter, so that’s good.” Plus, she expects to get the investment back if she ever sells the house.

The solar loan will take about 20 years to pay off, so Karla’s not exactly “making money. “We just liked the idea of being able to use power and not worry about it, not feel like we're doing harm to the planet,” she said.

Some nearly eliminate their power bill with net metering.

At least Karla's monthly loan payments are predictable. “If we do stay in this house until I’m 90-something, I don’t want to worry about energy bills,” she told us. “I’ve seen older people who don’t use their heat or don’t use their air conditioning because they are afraid of the energy bill at the end of the month.”

Nobody knows what energy costs will be like in the future, but they probably won’t be cheaper. Getting solar panels now is a good hedge against that.

Others go solar because they feel it’s the right thing to do. “If you can afford it you should do what you can to mitigate the damages our lifestyles can do to planet earth,” Gary in Sisters, Oregon, told us. “In my opinion… we almost can't afford not to afford to do this.”

If you finance, it’s worth it as long as your loan payment is less than what you would pay for traditional utilities. Over 25 years, Oregon homeowners with solar panels avoid $50,441 in utility costs on average.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Oregon

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Permits and other soft costs generally make up the rest of the total price tag.

Solar equipment

Solar panels are usually the most expensive part of the array. Monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Average solar panel efficiency rates range from 15% to 20%.

Like most things, better quality panels come with a more expensive price tag, but they often pay off in the long run with better performance and durability. High-efficiency panels are great if you have limited roof space — they generate more power per square foot, allowing you to produce the same energy with fewer panels. However, lower-efficiency panels may be more cost-effective if space isn't a concern.

Systems also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay at least between $7,000 and $18,000 — some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can get one for $80 to $400.

System size

The cost difference between a 6-kilowatt system and a 7-kilowatt system is thousands of dollars. To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200. This will be roughly the system size you need. For example, if your home used 30,000 kWh last year, you would need a 25-kW system.

» WATT’S THE DIFFERENCE? Kilowatt vs. kilowatt-hour

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. The cost of hiring professionals to install your solar system varies based on project size and complexity. Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. In Oregon, the average cost per watt is $2.75.

DIY solar panels are cheaper but not ideal for large residential projects. We suggest hiring a professional to help with installation and permitting. Otherwise, you run the risk of safety issues, roof leaks and other problems.

Condition of your roof

If you’ve been thinking about replacing your roof, it’s a good idea to do that before getting solar panels. Quality solar panels should last 25 to 30 years, so you need your roof to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. This is a frustrating and expensive process you should avoid if you can.

ConsumerAffairs has heard from many disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. It's important for your roof to match the system’s longevity if you want to ensure a seamless and cost-effective solar journey. Get your roof inspected, fixed or replaced before you get a solar energy system.

How can I pay for solar panels in Oregon?

You have options when it comes to paying for your solar system. You can pay cash upfront, take out a solar loan, lease your system or get a power purchase agreement (PPA). With leasing or a PPA, you get the benefits of solar, but you don’t own the system. Each option has pros and cons, and your choice affects your overall cost to go solar.

When it comes to paying for your solar system, you have options, including loans and leases. Each scenario has pros and cons, and your choice affects the overall costs of going solar.

• Solar loans: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Solar leases: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Power purchase agreements: A solar power purchase agreement (PPA) is similar to leasing. A solar developer buys, installs and maintains solar panels on your property. You buy the power generated by the system on a per kilowatt-hour (kWh) basis. It’s a fixed price, and the cents/kWh is usually cheaper than the utility’s rate for the same amount of electricity.

» SOLAR PANELS: Lease vs. buy

How to save money on solar panels in Oregon

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Oregon:

• Lower your energy use: It’s smart to upgrade any old appliances before going solar. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, meaning your household will need fewer solar panels overall. Your system size greatly affects how much you pay overall. The cost difference between a 9-kilowatt system and a 10-kilowatt system is thousands of dollars.
• Compare quotes: Get quotes from at least three or four different solar installers in Oregon. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Explore payment options: Affordable financing makes the upfront costs of solar more manageable. For instance, leases and power purchase agreements (PPAs) can let you start saving from day one with little or no money down.

» TIPS: Get the best solar quotes

Solar incentives, tax credits and rebates in Oregon

Oregon solar incentives are generous compared to many states. The federal solar investment tax credit (ITC) is still the most significant incentive for most homeowners. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

You may be able to take advantage of additional programs, like rebates through The City of Ashland, Salem Electric, Central Lincoln People’s Utility District and the Eugene Water & Electric Board (EWEB). The Oregon Department of Energy’s Solar + Storage Rebate Program seeks to make solar more accessible, especially for low- and moderate-income residents. There’s also a statewide net metering, which compensates you for energy you send into your local power grid.

» EXPLORE: Oregon solar incentives

Compare solar installation companies in Oregon

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Oregon.

FAQ

Bottom line

Oregon is already one of the greenest states in the U.S., thanks to its renewable energy generation, low carbon emissions and waste generation per capita, and percentage of waste that is recycled or composted.

Many homeowners in Oregon already have rooftop solar systems, and thousands more get them installed each year. It is a great state for going solar. The main drawback is the high cost of purchasing and installing the panels and equipment. Many residents we've talked to say the long-term savings outweigh the upfront expense.

Solar costs vs. savings: Oregon and nearby states