Oregon Solar Incentive Programs

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The Oregon Solar + Storage Rebate Program issues rebates for solar electric systems and paired solar and storage systems for residential customers and low-income service providers in Oregon. Rebates are issued to approved contractors, who pass the savings on to their customers. The program budget for 2023 is $9,050,000 for low- and moderate-income non-income restricted funding and $12,866,152 for reserved funding. As of October 20, 2023, $7,663,974 has been reserved, leaving $1,386,026 in remaining funds.

In addition to the state rebate program, there are other incentives available to Oregon residents:

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

Net Metering:

Net metering in Oregon is a billing arrangement for solar panel owners that credits them for excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can then be used to offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you not only save money but also contribute to a more sustainable energy future while helping maintain grid stability in Oregon.

Utility Rebates:

Pacific Power offers a rebate of $0.50 per watt for residential solar installations and $0.25 per watt for commercial installations. Portland General Electric offers a rebate of $0.40 per watt for residential solar installations and $0.20 per watt for commercial installations.

Further information and programs can be found at the Programs.Dsireusa.org