Oregon's Solar Panel Incentives and Tax Credits

There is an assortment of incentives open to Oregon homeowners that install solar. Government incentives are typical, though not always, administered as tax credits. State and local incentives are more likely to be cash rebates spent upon a construction of the projector over time. There are more direct incentives, there are additional, indirect benefits, such as property tax exemptions and net-metering, and they are available to the Oregonian solar panel consumer.

Incentives and tax credits are always subject to revision. An excellent, central source for up-to-date incentive information is the Database of State Incentives for Renewables and Efficiency (DSIRE).

Federal Tax Credit

The federal government grants a tax credit for 30 percent of the cost to install your system, with no cap. To get the credit, fill out  Residential Energy Credit Form 5695 when you complete your Federal income tax return. There is no other application material, though you should retain documentation of your project’s expense and proof of payment for your records. 

Tax credits, unlike tax deductions, decrease your tax liability directly: cent for cent. Provided you have sufficient tax liability to claim the credit, a $1,000 tax credit will be worth a full $1,000 to you in reduced taxes. If you typically pay your taxes through employer withholding throughout the year, a tax credit will likely result in a refund. If you usually owe taxes at the end of the year, the tax credit will immediately reduce how much you would otherwise pay. 

If you have an insufficient tax liability to claim your entire tax credit in one year, you may carry forward any remaining credit. More information about moving forward can be found on the Form 5695. Remark that the Residential Energy Tax Credit is not a refundable tax credit.

State Tax Credits

Oregon Department of Energy administers a Residential Energy Tax Credit of $2.10 per watt of solar electric modules installed, up to $6,000 (and you claim a maximum of $1,500 per year). For solar water heating systems, they provide $0.15/kWh of estimated annual energy savings, up to $1,500.  

As with the federal tax credit, if you have an inadequate tax liability to claim your tax credit in any given year, you may bring forward the remaining confidence, though there are goals on how long you have to use the carry forward. More information at oregon.gov/energy.

Energy Trust of Oregon Incentives

Energy Trust offers cash discounts to customers of Portland General Electric and Pacific Power who install solar electric systems. To qualify for incentives, the systems must be installed by a builder who is part of Energy Trust’s  Trade Ally Network. Their solar electric incentives are subject to modification based on demand, so check their website for the most up-to-date information. Energy Trust will meet customers with contractors through their solar proposal request service. They also offer a  solar calculator that explains how their incentive works with the state and a federal tax credit to bring down the cost of solar electric installation. 

Want to save and be guided by experts who do the research and know the answers? Go to HahaSmart.com and try our price checker tool. How much solar power you need and how much you can save on your energy bills each month.