Oregon Commercial Solar IncentivesHelping over 1,000 Oregon businesses go solar!
Oregon’s Commercial Incentives Explained
The cost of solar has come down by more than 50 percent in the last few years, making solar a better investment than ever before. Join over 1,000 Oregon companies have decided to cut their energy costs and gain the solar competitive edge.
Incentive 1 – Federal Solar Tax Credit
This incentive is a credit to your tax return worth 30% of the total cost or your solar electric system. The credits are taken for the tax year in which the system is installed.
If you do not use the entire federal tax credit, it can be passed forward to future tax years. Residential customers will have 5 years from the date of installation to claim the total credit.
You can learn more in this article: Why a Solar Tax Credit Is Worth More Than a Deduction.
Incentive 2 – Energy Trust of Oregon Cash Rebate
If you are a Portland General Electric or Pacific Power customer, your business is eligible to receive a cash rebate from the Energy Trust of Oregon. This cash rebate goes to your business and drops your cost of switching to solar.
How much you will receive can vary a bit depending on which company services your home. Current incentive levels are below.
Energy Trust Cash Commercial Solar Rebate Rates
Portland General Electric
Small Solar Installations up to 20 kW: $1.00/watt
Large Solar Installations, 21kW – 300 kW: $1.00-$0.50/watt*
*Sliding scale used for rebate calculation. Max rebate is $150,000. Get a free quote for an exact amount.
Small Solar Installations up to 15 kW: $1.00/watt
Large Solar Installations, 16 kW – 300 kW: $1.00-$0.40/watt*
*Sliding scale used for rebate calculation. Max rebate is $120,000. Get a free quote for an exact amount.
Please remember, Energy Trust cash rebates can decrease without warning. This is because each incentive level is only allocated a certain amount of funding. When “step funding” becomes used up, the incentive rates drop to a new level. As a result, be cautious about waiting too long before reaching out to us for an official quote.
Solar Rebate Qualifications
Incentive 3 – The Modified Accelerated Cost Recovery System (MACRS)
Depreciation is the loss of value that occurs over time with the item your business purchased for a specific use. As a business owner, you are eligible to deduct this “loss in value” from your taxable income when used for your business.
85% of total solar installation costs are eligible for depreciation. This can add a tremendous amount of financial value to your system.
If you have used MACRS or want a refresher course we recommend you to read, “How to Calculate the MACRS Depreciation Benefit for your business.”
Incentive 4 – USDA Solar Grant Money
Cover 25% of the total cost of going solar with grants from the United Stated Department of Agriculture (USDA). Agricultural producers and rural small businesses are eligible to receive up to $20,000 in grant money through their Rural Energy for America Power Program (REAP).Who may apply?
Who may apply?
- Agricultural producers with at least 50% of gross income coming from agricultural operations, and
- Small businesses in eligible rural areas.
Keep in mind, that “small” is defined by the SBA depending on your NAICS code, and can appear quite “large.”
At Sunbridge, we in-house writing the grant to ensure you have the best possible opportunity to be awarded. We have worked to secure business grant funding for many projects in a competitive system.