Oregon Solar Panels

Oregon’s Property Tax Exemption for alternative energy systems allows homeowners to add solar panels or other renewable energy systems to their property without increasing their property taxes. When you install a qualifying system, the added value it brings to your home is completely exempt from property tax assessment. This means you get all the benefits of increased home value from your solar installation without paying higher property taxes on that improvement.

To qualify for this exemption, your solar system must either be set up as a net metering facility (where excess energy is sent back to the grid) or be primarily designed to offset your onsite electricity use. The exemption applies to various renewable energy systems including solar panels, geothermal heat pumps, wind turbines, micro-hydropower systems, fuel cells, and methane gas systems. All components that add value to your property—such as solar panels, inverters, mounting systems, wiring, and batteries—are covered by the exemption.

There are no application deadlines or time limitations for this exemption, as it remains in effect for as long as you own the qualifying system. However, it’s important to note that certain installations don’t qualify, such as sunrooms, solariums, greenhouses, or porches, even if they provide some passive solar benefit. The exemption is automatic once your system is installed and assessed, making it a straightforward way to reduce the long-term cost of going solar in Oregon.

Oregon does not have a general sales tax, which means homeowners who purchase and install solar energy systems in Oregon are not charged state sales tax on their solar equipment or installation services. This is different from many other states where sales tax can add 5-8% or more to the total cost of a solar installation. Since there is no sales tax in Oregon, there is no exemption needed—you simply won’t pay this tax on your solar purchase.

This benefit applies automatically to all Oregon residents purchasing solar systems, as it’s part of Oregon’s overall tax structure rather than a specific solar incentive program. There are no applications to file, no eligibility requirements to meet, and no deadlines to worry about. While this isn’t a rebate or credit that puts money back in your pocket, it does mean your solar installation costs less from the start compared to what you might pay in states with sales tax. Keep in mind that if you purchase solar equipment from out-of-state vendors, you should provide them with an Oregon Business Registry Resale Certificate if applicable, though for most residential solar installations handled by local installers, this won’t be necessary.

The Smart Battery Pilot is a program from Portland General Electric (PGE) that rewards Oregon homeowners for connecting their home battery systems to the grid. During peak energy times—typically 10 to 15 times per year on the hottest or coldest days—PGE may charge or discharge your battery to help balance the grid. Your battery remains fully available during power outages, and you always control how much energy you share with the grid.

You’ll earn $1.70 per kilowatt-hour (kWh) for each Peak Time Event you participate in, with payments appearing as bill credits. The amount you earn depends on how much of your battery’s capacity you choose to make available to PGE. To qualify, you must have one of the approved battery systems: Tesla, SolarEdge, Enphase, FranklinWH, Duracell, or Eguana. You don’t need solar panels to participate—standalone batteries are eligible.

There are no enrollment deadlines mentioned, though this is a pilot program with limited capacity. Keep in mind that PGE will not use your battery during outages or when severe weather conditions are expected. You can opt out of any scheduled event, and your battery always prioritizes your home’s needs first. If you’re considering a new battery installation, Energy Trust of Oregon offers cash incentives for battery storage systems, including higher incentives for income-qualified households.

Net metering is a billing arrangement that allows Oregon homeowners with solar panels to receive credit for the excess electricity they generate and send back to the grid. When your solar system produces more energy than your home uses—typically during sunny midday hours—your electric meter essentially runs backward, and you receive credits on your utility bill. These credits can then be used to offset the cost of electricity you draw from the grid during times when your panels aren’t producing enough power, such as at night or on cloudy days.

Unfortunately, we don’t have specific details about Oregon’s current net metering rates, credit values, or program requirements at this time. Net metering policies can vary by utility company and may include factors such as how credits are calculated, whether they roll over month-to-month, and any system size limitations. We recommend contacting your local utility provider directly to learn about their specific net metering program, including the financial benefits available, eligibility requirements, and any enrollment deadlines. Your utility can provide the most accurate and up-to-date information about how net metering will work with your solar installation.