Bend, OR Solar Panels

Oregon’s Property Tax Exemption for alternative energy systems allows homeowners to add solar panels or other qualifying renewable energy systems to their property without increasing their property taxes. When you install an eligible system, the added value it brings to your home is completely exempt from property tax assessment. This means you get the benefit of a more valuable home with clean energy capabilities, but you won’t pay higher property taxes because of it.

To qualify for this exemption, your solar system must either be set up as a net metering facility (connected to the grid with the ability to send excess power back) or be primarily designed to offset your onsite electricity use. The exemption applies to various renewable energy technologies including solar photovoltaic systems, solar heating and cooling systems, geothermal heat pumps, wind turbines, micro-hydropower systems, fuel cells, and methane gas systems. However, structures like sunrooms, solariums, porches, and greenhouses do not qualify for the exemption.

There are no application deadlines or time limitations mentioned for this exemption—it remains in effect as long as your qualifying system is installed and operational. The exemption applies automatically to the real market value added by your renewable energy system. This is particularly valuable in Oregon where property values and corresponding tax assessments continue to rise, as your solar investment won’t contribute to higher annual property tax bills.

Oregon does not have a general sales tax, which means homeowners in Oregon don’t pay sales tax when purchasing solar panels, equipment, or installation services. Unlike residents in most other states who pay sales tax (typically 4-10%) on solar purchases, Oregon homeowners automatically avoid this cost on their solar investment. For a typical residential solar system costing $20,000-$30,000, this means you won’t pay an additional $800-$3,000 in sales tax that homeowners in neighboring states might face.

This benefit applies automatically to all Oregon residents purchasing solar energy systems, with no special forms, applications, or certifications required. There are no income limits, system size restrictions, or deadlines to worry about. However, it’s important to note that if you purchase solar equipment from an out-of-state seller, that seller may still charge their state’s sales tax unless you provide them with an Oregon Business Registry Resale Certificate (if you’re buying for resale purposes). For standard residential solar installations purchased through Oregon-based solar companies, you simply won’t see any sales tax added to your purchase price.

The Smart Battery Pilot is a program from Portland General Electric (PGE) that rewards Oregon homeowners for allowing their home battery systems to support the grid during peak energy demand. When you enroll, PGE can charge or discharge your battery during high-demand periods—typically 10 to 15 times per year on the hottest or coldest days. Your battery remains fully available for backup power during outages, and you control how much energy you’re willing to share.

You’ll earn $1.70 per kilowatt-hour (kWh) for each Peak Time Event you participate in, paid as bill credits. The amount you earn depends on your battery’s capacity and how much you choose to contribute. For example, if PGE uses 10 kWh from your battery during an event, you’d receive $17 in credits.

To qualify, you must be a PGE customer with 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. After installation, you’ll receive a link to connect your battery to PGE’s system. Energy Trust of Oregon offers cash incentives for battery installations, with higher amounts available for income-qualified households.

There are no mentioned enrollment deadlines, though this is a pilot program with limited capacity. PGE will not access your battery during power outages or when severe weather threatens reliability. You can opt out of any scheduled event and maintain full control over your system while helping create a cleaner, more resilient energy grid for your community.

Net metering is a billing arrangement in Oregon that allows 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 during sunny periods, your electric meter essentially runs backward, and you earn credits on your utility bill. These credits can then be used to offset the cost of electricity you draw from the grid during nighttime hours or cloudy days when your panels aren’t producing enough power.

Unfortunately, we don’t have specific details about Oregon’s current net metering rates, eligibility requirements, or program deadlines at this time. The financial benefit and specific terms can vary depending on your local utility company. We recommend contacting your utility provider directly to learn about their net metering policy, including how credits are valued, whether there are any system size limitations, and if there are capacity caps or waitlists for the program. Understanding these details will help you accurately estimate the long-term savings potential of your solar investment.