Oregon’s Key Solar Incentives: A Breakdown

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As the push for renewable energy gains momentum, Oregon stands out with a comprehensive suite of solar incentives designed to make solar energy more accessible and affordable for its residents and businesses. These incentives play a crucial role in encouraging the adoption of solar technology, thereby contributing to the state’s ambitious clean energy goals.

Residential Clean Energy Credit

The Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), offers a 30% reduction in the cost of your solar panel system. This incentive covers the entire system, including equipment, labor, permitting, and sales tax. To claim this credit on your federal income taxes, you must purchase the system with cash or a solar loan—leasing the system makes you ineligible for the ITC.

Additionally, you must have a sufficiently high tax liability, though any unused credit can be carried over from year to year until the ITC expires at the end of 2034. The only exception is for tax-exempt entities, such as nonprofit organizations, which may be eligible for a direct payment instead of a tax credit.

Oregon Solar + Storage Rebate Program

The Oregon Solar + Storage Rebate Program offers benefits to residential customers and low-income service providers in Oregon. Upon enrollment in the program, rebates are issued to approved contractors, who then pass on the savings to customers.

According to the Oregon Solar + Storage Rebate Program website, customers can receive up to $5,000 for their solar electric system and up to $2,500 for an energy storage system.

For low- or moderate-income households, the rebate amount can be up to $1.80 per watt of installed capacity, covering up to 60% of the net cost or $5,000, whichever is lower. Homeowners who do not qualify as low- or moderate-income households can still apply for incentives and receive a rebate of $0.20 per watt of installed capacity, as specified on the website.

Even if a customer is not eligible for the utility incentive, they may qualify for a rebate of $0.50 per watt, covering up to 40% of the net cost or $5,000, depending on whichever amount is less.

Solar Electric Program

In Eugene, the Eugene Water and Electric Board (EWEB) administers a rebate program, granting eligible customers a rebate of $0.40 per watt installed or $2,000, whichever is lower. However, this incentive is subject to an annual budgetary constraint and is allocated on a first-come, first-served basis.

Solar Planning Program

Energy Trust of Oregon provides cash incentives and technical assistance to facilitate the seamless and cost-effective integration of solar into building designs. Leveraging solar power offers numerous advantages, including decreased energy expenses, diminished carbon emissions, and insulation against escalating electricity prices—compelling reasons to harness the sun’s energy. With Energy Trust’s support, transitioning to solar becomes accessible and affordable. Additionally, Energy Trust assists in designing buildings to be solar-ready, thereby reducing the expenses associated with future solar installations.

The EnergyTrust Solar Within Reach Program

The Energy Trust of Oregon’s “Solar Within Reach” program is designed to make solar energy more affordable for income-qualified homeowners in Oregon. This initiative offers significantly higher incentives, up to five times the standard amount, to cover a substantial portion of the upfront costs associated with installing solar panels.

Net Metering

In Oregon, utilities are mandated by law to provide net metering, allowing solar panel owners to receive credits for surplus electricity they generate and send back to the grid. These credits can be used to offset the utility’s electricity when solar panels are not producing enough energy.

One of the primary benefits of this policy is that solar energy system owners can accumulate credits during sunny months and utilize them during periods of lower solar generation, such as Oregon’s cloudy winter months.

Furthermore, if solar energy system owners produce more electricity than they consume in a month, they will not incur any kilowatt-hour charges on their electric bill. They will only be responsible for paying basic utility service charges, which are typically modest.

It’s worth noting that the specifics and regulations of net metering programs may vary among different utility companies in Oregon.

Solar for All

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development. 
• Teaming up with lead applicant GRID Alternatives, a coalition of ten mission-driven nonprofit solar and affordable housing providers and allies has collaborated to develop the Solar Access for Nationwide Affordable Housing Program (SANAH). SANAH is meticulously crafted to maximize benefits for households and communities while advancing equity, reducing harmful pollution, and combating climate change. The program offers a multitude of advantages, including expanded access to solar and storage for income-qualified households, significant energy savings and relief from burdensome costs, as well as additional benefits like efficiency improvements and electrification. 
• The Oregon SFA Coalition (OSFAC) is poised to harness existing solar incentives and support mechanisms through a coordinated program delivery framework tailored to the unique requirements of low-income households and disadvantaged communities in Oregon. Collaboratively, OSFAC members will facilitate solar installations at single-family residences with minimal to no upfront costs for customers, while offering point-of-sale rebates for multifamily buildings that directly benefit low-income occupants. Moreover, the program will extend financial and technical aid to advance Community Solar projects in Consumer Owned Utility Territories (COUTCS) beyond OCSP coverage areas, alongside initiatives for workforce development. This diversified strategy aims to optimize the utilization of current resources and enhance outreach to a wide array of households statewide.

Oregon’s robust solar incentive programs underscore the state’s commitment to sustainable energy and its leadership in promoting renewable energy solutions. By taking advantage of these incentives, residents and businesses can contribute to a greener future while enjoying significant economic benefits. As Oregon continues to innovate and expand its renewable energy initiatives, staying informed about these opportunities is essential for anyone considering a switch to solar power.

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.