Oregon
Solar in Oregon
Oregon homeowners are turning to solar energy to combat rising electricity costs, with prices jumping 31% from 2020 to 2024. Despite ranking 21st nationally for residential solar installations, the state’s clean energy initiatives and favorable policies make it an excellent choice for home solar panels.
Understanding your solar options is the first step toward lower energy costs. This comprehensive guide covers everything you need to know about solar installation in Oregon.
Key Takeaways
- Oregon electricity rates jumped 28% in two years, making solar panels an effective way to lock in stable energy costs.
- Oregon homeowners can save approximately $6,456 through federal tax credits and state solar incentives like property tax exemptions.
- Despite Oregon’s cloudy reputation, the state receives ample sunlight for effective year-round solar energy production and savings.
Solar Cost in Oregon
Our solar cost calculator uses real installation data from Oregon homeowners in Portland, Eugene, Salem, and beyond. Get accurate, local pricing estimates based on actual projects we’ve completed in your area.
System
Cost
Savings
Oregon Electricity Prices
Oregon’s electricity rates have surged dramatically, creating financial pressure for homeowners across the state.
Electricity costs in Oregon jumped from 11.4 cents per kWh in 2022 to 14.6 cents in 2024—a 28% increase in just two years.
Solar panels generate your own electricity, helping shield your household from these unpredictable utility rate increases that impact your monthly budget.
Over 25 years, solar systems provide stable energy costs while utility rates continue climbing, offering predictable savings for Oregon families.
Price of Energy: Oregon vs National Average
Oregon Area Utility Providers
Oregon’s two major utilities, Pacific Power and PGE, offer competitive electricity rates compared to national averages. Based on 2023 data, Pacific Power charges 12.0¢ per kWh while PGE charges 15.2¢ per kWh.
Both utilities remain below the 2023 national average of 16.0¢ per kWh, with Pacific Power significantly under Oregon’s state average of 12.70¢. These competitive rates reflect Oregon’s abundant hydroelectric resources and renewable energy investments.
Even with competitive utility rates, solar installation offers Oregon homeowners long-term energy cost stability. Solar panels provide protection against future rate increases while supporting the state’s clean energy goals.
Oregon Utilities Electricity Rates
Oregon Solar Incentives
Oregon offers multiple financial incentives to reduce solar installation costs. These solar incentives in Oregon include state tax exemptions and utility programs.
State-level benefits include property tax exemptions on solar system value and no sales tax burden. Utility programs like net metering and battery pilots provide ongoing savings opportunities.
These incentives can change over time. Research current programs thoroughly and consider acting promptly to maximize available benefits.
$6,456
Average savings in Oregon solar rebates
Incentive | Type | Description | Source |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Property Tax Exemption | State tax exemption | No property tax on solar-added value. Applies to all system sizes. | Learn More |
Sales Tax Exemption | State tax exemption | Just a reminder that Oregon has no sales tax, so that helps with the cost of buying solar. | Learn More |
Smart Battery Pilot | Utility program | During high usage days, PGE can tap your battery for ~$20/day. This may add up to $200-$300/year based on your battery size. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Oregon’s Property Tax Exemption for solar energy systems allows homeowners to install solar panels without increasing their property taxes. When you add a solar system to your home, the added value from the solar installation is completely exempt from property tax assessment. This means you get to keep all the benefits of increased home value without paying higher property taxes on that improvement.
The exemption applies to the full value of your solar energy system, including panels, inverters, and installation costs. There are no income limits or system size restrictions for this benefit. The exemption continues for as long as you own the solar system, making it a long-term financial advantage. Oregon homeowners should note that this exemption applies automatically when you install a qualifying solar energy system – no special application is required beyond normal permitting processes.
Oregon’s Sales Tax Exemption for solar energy systems is actually quite straightforward – Oregon doesn’t have a general state sales tax at all. This means that when you purchase solar panels, inverters, batteries, and other solar equipment in Oregon, you won’t pay any state sales tax on these items. This is different from most other states that charge sales tax on purchases and then offer exemptions for solar equipment.
The financial benefit is automatic and applies to the full purchase price of your solar system components. Since Oregon has no general sales tax, there are no specific eligibility requirements, deadlines, or application processes for this benefit – it simply doesn’t exist as a tax you would need to pay. However, if you’re an Oregon resident purchasing solar equipment from out-of-state retailers, you should be aware that some states may still try to charge their sales tax, though Oregon law doesn’t require you to pay use tax on items brought into the state for personal use.
PGE’s Smart Battery Pilot is a utility program that allows Oregon homeowners with qualifying battery systems to earn money by sharing stored energy with the grid during peak demand periods. When the electric grid needs extra power (typically 10-15 times per year during the hottest or coldest days), PGE can access a portion of your battery’s stored energy to help support the community’s electricity needs. You maintain full control over how much energy you’re willing to share, and your battery always remains available for backup power during outages.
Participants earn $1.70 per kWh for each Peak Time Event they participate in, with payments appearing as bill credits on their PGE account. To qualify, you must have one of the approved battery systems: Tesla, SolarEdge, Enphase, Generac, FranklinWH, Duracell, or Eguana. The program operates year-round with no specific enrollment deadlines mentioned, though it’s described as a pilot program that began in 2020.
Important considerations include that PGE will never access your battery during actual power outages, ensuring your backup power remains available when you need it most. You can opt out of any grid dispatch request and choose your participation level based on your comfort with sharing battery capacity. This program works alongside other incentives like Energy Trust of Oregon rebates and the 30% federal tax credit for battery systems.
Net metering in Oregon is a billing arrangement that allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses during sunny periods, that extra power flows to the grid and your utility company gives you credits on your electric bill. These credits can then be used to offset the electricity you draw from the grid when your solar panels aren’t producing enough power, such as at night or during cloudy days.
The financial benefit of net metering works like a one-to-one credit system in most cases, meaning you receive the same rate for the electricity you send to the grid as you pay for electricity you use from the grid. However, specific rates and credit structures can vary by utility company in Oregon. Most Oregon utilities allow you to carry forward unused credits from month to month, though policies on annual credit reconciliation differ between providers. To be eligible, you typically need a solar system that meets your utility’s interconnection requirements and size limitations, which are usually based on your home’s historical energy usage.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Oregon incentives.
Get a Free QuoteOregon Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Oregon’s cloudy reputation shouldn’t discourage solar adoption. Despite frequent overcast days, the state receives ample sunlight for effective solar energy production year-round.
What Can the Average Oregon Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Oregon homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Oregon homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Oregon
We’ve mapped every solar installation across the United States to show you something exciting: your Oregon neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.
Leasing Solar Panels
Currently, Palmetto doesn’t offer leasing or PPA options in Oregon. However, we provide an excellent alternative through our LightReach energy plan, which offers many benefits of solar without the traditional ownership model.
Unlike most solar leases or PPAs that require separate maintenance contracts, LightReach centralizes everything into one inclusive price managed solely by Palmetto Finance. We design, install, and maintain your system while providing comprehensive project management and premium equipment—all at no additional cost to you.
With LightReach, you get worry-free solar with our 90% Production Guarantee and comprehensive protection program. This approach eliminates the complexity of deciding whether to buy or lease while still providing immediate energy savings for Oregon homeowners seeking clean, affordable power.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Oregon despite the state’s cloudy reputation. Oregon receives sufficient sunlight for effective year-round solar production, with homeowners saving approximately $40,350 over 25 years.
With electricity rates jumping 28% in recent years and generous incentives like the 30% federal tax credit plus property tax exemptions, solar provides stable energy costs and protection from rising utility bills for Oregon families.
Yes, Oregon has net metering through most major utilities including PGE and Pacific Power. This billing arrangement credits you for excess solar electricity sent to the grid at retail rates.
Oregon’s net metering policies allow you to carry forward unused credits month-to-month, helping maximize your solar investment by offsetting future electricity usage when your panels aren’t producing enough power.
Yes, solar panels typically increase home value in Oregon. Research by Zillow shows solar panels increase home value by 4.1% nationally, providing Oregon homeowners with added equity alongside energy savings.
Oregon’s property tax exemption means you won’t pay higher taxes on the solar-added value, making it a win-win investment that boosts both your home’s worth and monthly savings through reduced electricity bills.
The average cost of solar in Oregon is $15,065 after federal tax credits for a typical 6.72 kW system. Before incentives, the system costs approximately $21,521.
With Oregon’s 30% federal tax credit and property tax exemptions, homeowners save around $6,456 in rebates while protecting against rising electricity costs that have increased 28% in recent years.
Yes, solar is financially worth it in Oregon. With electricity rates jumping 28% in recent years and average savings of $40,350 over 25 years, solar provides excellent returns despite the upfront investment.
Oregon homeowners typically break even in 11.6 years while enjoying monthly savings of $92 and protection from rising utility costs. Federal tax credits and state incentives reduce initial costs by approximately $6,456.
We’re proud to be a leading solar installer serving Oregon homeowners. Since 2020, we’ve completed 899 solar installations across Oregon, helping families reduce energy costs and embrace clean power.
Our comprehensive approach includes competitive financing options, premium equipment, and a trusted local installation network. We focus on delivering exceptional customer service while making solar accessible and affordable for Oregon residents.