Oregon 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.
Federal Investment Solar Tax Credit
The Federal Solar Tax Credit will directly credit your federal taxes, wiping out any tax liability that you have on a one-to-one basis.
This incentive is a credit to your tax return worth 30% of the total cost of your solar electric system. The credits can be used within 5 years from the date of installation.
Example Using the Federal Solar Tax Credit
Cost of System:
Federal Tax Credit Gained
Combined with other Oregon commercial solar incentives paybacks are quick and the energy savings are long-lasting.
Energy Trust of Oregon Cash Incentive
If you are a Portland General Electric (PGE) or Pacific Power customer, you will receive a cash rebate from the Energy Trust of Oregon. This rebate goes to the solar installer and drops your cost of going solar.
How much you will receive can vary a bit depending on which company services your home. Current incentive levels are below.
Current Energy Trust Incentive Levels
Portland General Electric (PGE): $0.30 – $0.55 per watt
(up to $45,000).
Pacific Power: $0.25 – $0.45 per watt
(up to $25,000).
Please remember, Energy Trust cash rebates can decrease without warning. This is because each incentive level is only allocated a certain amount of funding. Once this “step funding” is used up, 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. See the live PDF status update at the Energy Trust of Oregon’s website.
Solar Rebate Qualifications
1) The solar installer must be a certified Solar Trade Ally by the Energy Trust of Oregon.
2) All solar equipment must be new and UL listed.
3) Verification from Energy Trust tax technicians.
MACRS Accelerated Depreciation for Solar Panels
50% Bonus Depreciation is Available, too!
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.
MACRS Accelerated Depreciation Table
MACRS Bonus Depreciation Table
United Stated Department of Agriculture Grant
Rural Energy for America Program (REAP)
The United States Department of Agriculture (USDA) provides grant funding to agriculture producers and rural small businesses for solar electric systems. The popular Rural Energy for America Program grant, or better known as USDA REAP Grant cover 25% of the total cost of going solar with grants from the United States Department of Agriculture.
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?
- Agricultural producers with at least 50% of gross income coming from agricultural operations
- Businesses in eligible rural areas
- Agriculture producers may be in rural or non-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 work diligently to secure business grant funding for many projects in a competitive system.
Net Energy Metering at Market Rate
Net Energy Metering is how your utility compensates homeowners with solar panels for providing clean, renewable energy to your neighbors. Your utility must keep a “running tab” on how much solar energy you generate and then remove that charge from your bills. Any extra electrical credits that you save up must be carried forward to the next month’s bill for a full year.
Each credit is worth equal the market rate which is the price you pay for electricity.This means that you can bank up energy credits for solar power that you create in the summer, then use it in the winter when the sun isn’t shining so much.
Example of Net Energy Metering
You generate 10,000 kilowatt-hours of solar power.
You consume 6,500 kilowatt-hours of utilit energy.
Therefore, you net 3,500 energy credits.