Tax Credits and Incentives
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 rebates on renewable energy systems which are paid directly to the installer, and that amount is generally deducted from the overall price of a system. The Energy Trust is funded through a 3% charge added to the utility bills by Oregon's three largest private utilities: Portland General Electric, Pacific Power and NW Natural. There is also a new federal income tax credit for solar installations that is currently available through December 31, 2008.

Residential Incentives

Solar Hot Water:
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, qualifies for the maximum Oregon tax credit of $1500 in most of the state (Zones 2 and 3) and for $1320 in Zone 1 west of the Cascades.

The Energy Trust of Oregon provides an up-front incentive for solar domestic water heating systems up to a maximum of $1,500, and which depends on the type of backup water heating system a person's home uses. 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 $880 and $660 respectively.

The federal government offers a solar income tax credit equal to 30% of the overall cost, minus up-front incentives, up to a maximum of $2,000.

Solar Electric Systems (Photovoltaics):
The Oregon Residential Energy Tax Credit Program provides a tax credit for photovoltaic systems of $3 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 $2.25 per watt for Portland General Electric customers and $2 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 overall cost, minus up-front incentives, up to a maximum of $2,000.

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 rated annual savings will vary according to the size of the pool heating system.

The Energy Trust of Oregon provides up-front incentives for solar pool and spa heating systems, up to a maximum of $1,000, which depends on the type of pool heating system the customer currently uses. Customers with an electric heating system will receive an incentive of $0.10 per kWh of annual rated savings. Customers using a natural gas system will receive a rebate of $0.07 per kWh of annual rated savings.

Commercial Incentives

Solar Hot Water:
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 for solar domestic water heating systems up to a maximum of 50% of the system cost, and which depends on the type of backup water heating system a business uses. Customers with an electric backup heater receive an incentive of $0.40 per kWh of annual savings, while natural gas customers receive $6.00 per therm.

The federal government offers a solar income tax credit that equals 30% of the overall cost, minus up-front 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 $1 per watt Pacific Power customers and $1.25 per watt for Portland General Electric customers. The maximum incentive is $35,000.

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 and spa heating systems (up to a maximum of 35% of the system cost) depending on the type of pool heating system the customer currently uses. Customers with an electric heating system will receive an incentive of $0.10 per kWh of annual rated savings. Customers using a natural gas system will receive an incentive of $1.50 per therm of annual rated savings.

HOME MR. SUN SOLAR  CCB#33716
6125 NE Portland Highway Portland OR 97218    503-222-2468 or 1-888-SOL-RELY