Does Oregon offer incentives for solar panels?
Absolutely! Oregon has a variety of incentives to make going solar more affordable. These include the Oregon Solar + Storage Rebate Program, which offers rebates for homeowners and businesses that install solar panels and battery storage systems.
You can also take advantage of the Federal Solar Tax Credit, allowing you to deduct 30% of the cost of your solar panel system from your federal taxes. Plus, Oregon has net metering policies, which means you can sell any excess solar power you generate back to the grid for even more savings.
The Energy Trust of Oregon (ETO) offers incentives in the form of cash rebates to homeowners and businesses who are customers of Portland General Electric (PGE) or Pacific Power (PP).Â
These Oregon solar incentives are subject to availability and change rates, and they are calculated on a per-watt basis.
ETO Incentive Qualifications
To qualify for these Oregon solar incentives, you must live or own a business within PGE or PP’s service area. Your building must be:
- Residential
- Commercial
- Industrial
- Government-related
- Nonprofit, school-related
- Agricultural, or
- Institutional.
The solar installation that you install must be new, UL-listed, compliant with all standards, and carry warranties on all components.
The system must meet all applicable codes and additional site criteria such as total solar resource fractions, be grid-tied, and be installed by an approved Energy Trust solar trade ally contractor (such as our contractors here at Sunbridge Solar). Residential solar energy systems
ETO Incentive Amount
| Utility | Incentive |
|---|---|
| Portland General Electric (PGE) | $500 flat per project |
| Pacific Power | $600 flat per project |
The Portland Clean Energy Fund (PCEF) was the first environmental initiative in the state of Oregon that was created and led by communities of color, and it was enacted by local ballot measure. Since climate change disproportionately affects people of color as well as low-income residents, the PCEF was created to combat these effects by;
- Creating and contributing to clean energy projects
- Providing clean energy job training programs
- Promoting economic and social benefits,Â
The PCEF can also be used to provide grants to nonprofits in order to assist with installing solar energy systems.
The Energy Trust also offers a solar incentive in Oregon for low-income families. The Solar Within Reach program provides cash incentives that help low-income families be able to afford to install a solar panel system, which will cut their energy costs in the long term.
Income Qualifications
In order to participate in this Oregon solar incentive for 2024, you must own a residence that falls into one of the following categories: single-family home, multi-family home, manufactured home, floating home, or condo.Â
As with the ETO’s utility incentives, you must work with an Energy Trust-approved solar trade ally contractor (again, like our contractors at Sunbridge Solar).
Finally, your gross annual income must not exceed the program limits based on how many people live in your home:
| Household Size | Gross annual income maximum |
|---|---|
| 1 person | $62,530 |
| 2 people | $81,770 |
| 3 people | $101,010 |
| 4 people | $120,252 |
| 5 people | $139,492 |
| 6 people | $158,732 |
| 7 people | $162,341 |
| 8 people | $165,948 |
The amount of incentive that you will receive is based on the size of the solar energy system that you decide to install, with a maximum of $1.40 per watt and an incentive cap of $8,400 per home.
| Utility | Incentive | Battery Storage Incentive |
|---|---|---|
| Portland General Electric | $0.90/watt, $5,400 maximum per home | $750/kWh, $10,000 maximum per home |
| Pacific Power | $1.00/watt, $6,000 maximum per home | $750/kWh, $10,000 maximum per home |
The Oregon Department of Energy solar rebate began offering a new incentive that is meant to help reduce the upfront costs of installing a stand-alone solar energy system or an energy storage system (home solar power plus battery backup). This rebate can cover up to 60% of the net cost of installing your system, with a cap of $5,000 for solar-only systems and a cap of $7,500 for solar plus battery systems.
Eligibility
In order to qualify, your installation site must be property that is completely within Oregon state lines and it must score at least 75% on the total solar resource fraction rating, which evaluates the amount of sunlight that your system will ultimately receive. All equipment for the project must be purchased by an ODOE-approved contractor and installed by that same contractor. (Sunbridge is ODOE-approved!)
Rebate Calculation
| ​​Customer Type | ​Rebate Calculation |
|---|---|
| ​Low- or moderate-income homeowners | $1.80 per watt (DC) of installed capacity, up to 60% of the net cost* or $5,000, whichever is less. |
| ​Homeowners not considered low- or moderate-income who are also eligible for an electric utility incentive | ​$0.20 per watt (DC) of installed capacity, up to 40% of the net cost or $5,000, whichever is less. |
| ​Homeowners not considered low- or moderate-income who are not eligible for an electric utility incentive | ​$0.50 per watt (DC) of installed capacity, up to 40% of the net cost or $5,000, whichever is less. |
*ODOE defines the net cost of a system as the total of all eligible costs minus any incentive provided by an electric utility or by Energy Trust of Oregon.
Incentive Guidelines for Low- or Moderate-Income Families
To qualify as a household with low- or moderate-income, the sum of all incomes in the household must be at or below the amounts listed below, by household size. All income earners residing at the place of residence, including all family members and roommates who are not related and not part of a separate lease agreement.
| Household Size | Annual Gross Income* | Monthly Gross Income* |
|---|---|---|
| 1 | $52,110.00 | $4,342.50 |
| 2 | $68,143.33 | $5,678.62 |
| 3 | $84,176.67 | $7,014.72 |
| 4 | $100,210.00 | $8,350.83 |
| 5 | $116,245.00 | $9,687.08 |
| 6 | $132,278.33 | $11,023.20 |
| 7 | $135,285.00 | $11,273.75 |
| 8 | $138,290.00 | $11,524.17 |
| 9 | $141,296.67 | $11,774.72 |
| 10 | $144,303.33 | $12,025.28 |
| 11 | $147,310.00 | $12,275.83 |
| 12 | $150,315.00 | $12,526.25 |
| Each Additional Member | $3005.00 | $250.42 |
Source: Oregon Department of Energy
Good news for this incentive. The Inflation Reduction Act of 2022 extends the 30% federal tax credit until 2032, decreasing to 26% in 2033, and dropping to 22% in 2034 before finally disappearing entirely in 2035 unless there is an action taken again by Congress to extend it. This new law supersedes the previous one that would expire this incentive in 2024.
| Year | Residential | Commercial |
|---|---|---|
| Now - 2032 | 30% | 30% |
| Year 2033 | 26% | 26% |
| Year 2034 | 22% | 22% |
| Year 2035 | 0% (Expires) | 0% (Expires) |
How Does the ITC Work?
The Investment Tax Credit (ITC) works by giving a 30% of the total cost back to you in the form of federal tax credits. For example, if your system costs $20,000, you will earn $6,000 back in tax credits.
What happens if I have more tax credits than tax liability?
That’s no problem. You will not get a cash refund, instead, the remaining credits will be applied to the next tax year.
Net energy metering is an extremely helpful program that saves you money and can drastically shorten the payback period on a solar energy system. It is one of the best Oregon solar incentive because it provides excellent energy savings in a form of credits and last must longer than most.
Net metering policies vary by state and in fact, not all states allow for net metering. However, Oregon has one of the best net metering policies. It essentially allows you to sell excess energy that your solar panels produce to the grid in exchange for credits on your utility account.
How Does Net Energy Metering Work Oregon?
When you install a grid-tied solar energy system, your utility company will install a special two-way electricity meter. This meter will measure both the flow of grid electricity into your home and the flow of energy from your solar panels into the grid.
This way, it can determine your net energy usage and if you have used more than you put into the grid, you will pay for that difference, or if you put more energy into the grid than you used, you will receive credits on your account.
This program allows you to essentially use your solar energy even after it is produced since many people are at work or school or otherwise not using much electricity during the daytime when solar panels are producing the most energy.
Earn Credits Throughout the Year
When you install a grid-tied solar energy system, your utility company will install a special two-way electricity meter. This meter will measure both the flow of grid electricity into your home and the flow of energy from your solar panels into the grid.
This way, it can determine your net energy usage and if you have used more than you put into the grid, you will pay for that difference, or if you put more energy into the grid than you used, you will receive credits on your account.
This program allows you to essentially use your solar energy even after it is produced since many people are at work or school or otherwise not using much electricity during the daytime when solar panels are producing the most energy.
The United States Department of Agriculture offers the Rural Energy for American Power (REAP) grant. This program provides grants as well as guaranteed loan funding to agricultural producers and rural small business owners, for the purpose of improving overall energy efficiency or installing new renewable energy systems.
Here’s a breakdown of the eligibility requirements for the REAP program:
- Business or Farm Ownership: You must own a rural business or farm.
- Financial Stability: Your business must be financially solvent.
- Tax Compliance: You must have no outstanding federal taxes, delinquencies, judgments, or debarments.
- Agricultural Income: If you’re an agricultural producer, 50% or more of your gross annual income must come from farming.
- Rural Location: Small businesses must be located in a rural area (not a city or town with 50,000 or more residents).
- Eligibility Map: Use the USDA’s eligibility map online to confirm your business address qualifies.
REAP Loans
REAP offers loans ranging from $5,000 to $25 million, with all loans guaranteed up to 85% of the total amount. Loan terms vary based on the type of project:
- Capital loans: 7-year maximum term
- Equipment and machinery loans: 15-year maximum term
- Real estate and combined real estate and equipment loans: 30-year maximum term
REAP Grants
REAP grants are available in amounts from $1,500 to $250,000. For energy efficiency improvements and any project exceeding $200,000, a technical report and energy audit are required before work can begin.
Application and Funding
To ensure fair competition, REAP categorizes applications based on total project cost. Cost-sharing requirements vary based on whether you’re applying for a grant, loan, or a combination of the two:
- Grant applicants: Must cover 75% of the project cost.
- Loan applicants: Must cover 25% of the project cost.
- Combination loan and grant applicants: Must also cover 25% of the project cost.
Salem Electric Solar Rebate
Salem Electric offers a solar rebate program for its residential customers. Solar energy systems must be 25 kW or smaller to be eligible, and applicants must apply for the rebate and gain approval before any work begins on the system. It must be net metered, meet ODOE requirements, and be installed by an ODOE-approved contractor.* The rebate is offered at a rate of $300 per kW, with a cap of 50% of the total cost of the project or $1,500, whichever is less.
*Sunbridge Solar is an ODOE-approved contractor.
Pacific Power Blue Sky Community Project Funds (Nonprofits)
Pacific Power has a Blue Sky program where customers voluntarily pay extra on their utility bills each month and then that money is used to fund community-based renewable energy projects within PP’s service area. If you are interested in spearheading such a community-based project, you can submit your plans to Pacific Power with a request for funding.
All projects must be interconnected with the grid, less than 10 MW in size, non-residential, and locally owned. Each project is evaluated based on several factors such as feasibility, cost, community benefit, and so forth.
PGE Renewable Development Fund (Nonprofits)
Portland General Electric offers a similar program for Oregon nonprofits that is funded by voluntary payments. The Renewable Development Fund supports solar projects that are less than 10 MW and interconnected to PGE’s grid or produce power that is delivered to PGE through a power purchase agreement. Funding can also be used for research and development projects and educational programs.
Solar panels are definitely worth it in Oregon in 2024. The state has some of the best solar incentives in the country that can drastically reduce the upfront cost of installing a solar energy system, shorten the payback period, and put more money in your pocket faster.
Generally, moderate temperatures mean that your solar panels will not suffer badly from heat-related drops inefficiency, as would happen in the southwest and other very warm climates.
Despite the stereotype of rainy PNW weather, Oregonians enjoy long sunny summer days and only moderate amounts of snow. Additionally, advanced solar technology means that the sun’s energy can be harvested even on overcast days.
In general, Oregon homeowners and business owners who install solar energy systems can save an average of $800 per year on their energy bills, while also doing their part to protect the environment and make the move away from fossil fuels.
We at Sunbridge Solar are dedicated to making the switch to solar as simple and seamless as possible for you. Years of experience designing and installing specialized solar solutions for homes and businesses in Oregon have been accumulated by our team of experts.
We provide free consultations to go over your specific energy requirements and address any questions you may have if you are interested in finding out more about how solar can help you. During the consultation, we will assess your property, go over your energy objectives, and give you a ballpark figure for the price and financial benefits of going solar.
You can call us or complete a form on our website to set up a consultation. Take the first step toward a cleaner, more sustainable energy future with the assistance of our team.
Thinking about making the switch to solar energy? We understand you might have some questions. Here are answers to some of our most frequently asked questions:
With Oregon's abundant sunshine and the generous incentives available, solar energy is a fantastic investment for homeowners and businesses alike! The cost of solar panels has decreased significantly in recent years, making it more accessible than ever. Switching to solar with Sunbridge Solar means lower energy bills, a reduced carbon footprint, and increased energy independence.
The cost of a solar panel installation varies depending on the size of your system and the specific needs of your property. On average, homeowners in Oregon can expect to invest between $15,000 to $20,000. However, with incentives and long-term savings, it's an investment that pays for itself over time. Remember, we offer a free solar estimation tool on our website to help you get a personalized idea of costs and potential savings.
The payback period, or the time it takes to recoup your solar investment through energy savings, is typically around 7 to 10 years in Oregon. This can vary based on factors like energy consumption, system size, and available incentives. Our solar experts can provide a more accurate estimate of your payback period during a free consultation.
Yes, studies have shown that homes equipped with solar panels sell for an average of 4.1% more than comparable homes without solar. Solar panels are a desirable feature for potential buyers as they offer lower energy costs and demonstrate a commitment to sustainability.
While it's technically possible to install your own solar panels, it's a complex process that's best left to qualified professionals. At Sunbridge Solar, our team of experienced installers ensures your system is installed safely, correctly, and in compliance with all local regulations. Plus, we back our workmanship with a 10-year warranty.
Solar panels are built to last! Most solar panels have a lifespan of 25 to 30 years, and they can often continue to produce electricity for many years beyond that. At Sunbridge Solar, we only use high-quality panels from leading manufacturers, so you can be confident in the longevity of your solar investment.