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Many states offer incentives for residents and businesses to invest in renewable energy projects. These incentives can cover more than half of the cost of a system. This page provides details of solar incentives for Oregon. You can learn more about renewable energy incentives in other states at the Database of State Incentives for Renewable Energy (DSIRE) website.
Oregon uses two different incentive programs. The Oregon Department of Energy manages a program for applying state tax credits to new renewable energy and energy efficiency installations. The Energy Trust of Oregon provides incentives on renewable energy systems which are deducted from the overall price of the system. The Energy Trust is funded through a 3% charge added to the utility bills by Oregon's largest private utilities: Portland General Electric, Pacific Power, NW Natural Gas and Cascade Natural Gas.
Residential Incentives
Solar Electric Systems (Photovoltaics):
The Oregon Residential Energy Tax Credit Program provides a tax credit for photovoltaic systems. Currently this credit is 50% of the net cost after other incentives or $2.10 per watt, up to a maximum of $6,000. This is taken as $1,500 per year for four years.
The Energy Trust of Oregon provides an incentive of $1.75 per watt for
Portland General Electric customers and $1.50 per watt for Pacific Power
customers, up to a maximum of $10,000.
The federal government offers a solar income tax credit equal to 30% of the system cost, minus up-front incentives.
Solar Water Heating:
The Oregon Residential Energy Tax Credit Program provides a tax credit for solar domestic water heating systems of 60 cents per kilowatt hour (kWh) saved during the first year of operation, up to $1,500. Mr. Sun's preferred system, the Sol-Reliant, currently qualifies for the maximum Oregon tax credit of $1320 west of the Cascades and $1500 east of the Cascades.
The Energy Trust of Oregon provides an up-front incentive for solar water heating systems up to a maximum of $1,500. Customers with an
electric backup heater receive an incentive of $0.40 per kWh of annual
savings, while natural gas customers receive $0.30 per kWh. Therefore, the
4'x14' Sol-Reliant system with 80-gallon heat exchange tank would receive an
incentive of $1080 (electric) or $720 (natural gas).
The federal government offers a solar income tax credit equal to 30% of the
system cost, minus up-front incentives.
Solar Pool Heating:
The Oregon Residential Energy Tax Credit Program provides a tax credit for solar spa and pool heating systems of 15 cents per kWh saved, up to 50% of the cost, with a maximum tax credit of $1,500. The kWh saved is calculated by multiplying the total solar collector area times 30 for systems west of the Cascades, or 35 for systems east of the Cascades.
The Energy Trust of Oregon provides up-front incentives for solar pool and spa heating systems, up to a maximum of $1,500 for seasonal use pools. The incentive is calculated by multiplying the total solar collector area times $3.00 for PGE or Pacific Power customers or $2.25 for Northwest Natural Gas or Cascade Natural Gas customers.
Commercial Incentives
Solar Electric Systems (Photovoltaics):
The Oregon Business Energy Tax Credit Program provides a tax credit for photovoltaic systems of up to 50% of the system cost. The credit is filed over 5 years: 10% in the first and second years, and 5% per year thereafter.**
The Energy Trust of Oregon provides an incentive of $.75-$1.25 per watt for PGE customers with a maximum of $500,000 for a single site and $600,000 for multiple sites. The incentive for Pacific Power customers is $.50-$1.00/watt with a maximum incentive of $100,000. For more information, see Energy Trust Solar Electric for Business.
The federal government offers a solar income tax credit that equals 30% of
the overall cost, minus up-front incentives.
Solar Water Heating:
The Oregon Business Energy Tax Credit Program provides a tax credit for solar domestic water heating systems of up to 50% of the system cost. The credit is filed over 5 years: 10% in the first and second years, and 5% per year thereafter.**
The Energy Trust of Oregon provides an incentive of for solar water heating systems. PGE and Pacific Power customers using electric water heating receive an incentive of $0.40 per first-year kWh savings.
NW Natural/Cascade Natural Gas customers using gas water heating receive $6.00 per first-year therm savings. The maximum incentive is 35 percent of project cost (typically 10-15 percent). For more information, see Energy Trust Solar Water Heating for Business.
The federal government offers a solar income tax credit that equals 30% of the overall cost, minus up-front incentives.
Solar Pool Heating:
The Oregon Business Energy Tax Credit Program provides a tax credit for solar spa and pool heating systems of up to 35% of the system cost. The credit is filed over 5 years: 10% in the first and second years, and 5% per year thereafter.**
The Energy Trust of Oregon provides incentives for solar pool heating systems. For outdoor, seasonal use pools that are less than 1,000 square feet, the incentive is $3.00/sq.ft. of solar collector for PGE and Pacific Power customers, and $2.25/sq.ft. of solar collector for NW Natural/Cascade Natural gas customers. The maximum incentive is $1,500.
For year-round use or indoor pools greater than 1,000 square feet, the incentive for pools with backup heating provided by PGE and Pacific Power is $0.10/kWh of first-year energy savings. For pool heating provided by NW Natural/Cascade Natural Gas, the
incentive rate is $1.50/therm of first-year energy savings. The maximum incentive amount is 35% of the project cost. For more information, see Energy Trust Solar Pool Heating for Business.
**The Business Energy Tax Credit (BETC) has experienced a number of changes, including legislative modifications in February 2010 that set up a tiered system for renewable energy proposals. These are processed on a first-come, first-served basis, and all funds have currently been allocated.
Disclaimer: Consult your tax professional to learn how tax credits and rules apply to your project. This information does not constitute tax advice and cannot be used to avoid tax penalties.
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