Solar Guide

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 exempt from property tax assessment. This means you won’t pay additional property taxes on the increased home value that comes from your solar investment.

The exemption applies to the full value of your solar energy system and continues for as long as you own the system. There are no dollar limits or caps on this exemption – whether your system adds $10,000 or $30,000 to your home’s value, none of that increase will be subject to property taxes. To qualify, your solar system must be certified and installed according to Oregon state requirements. The exemption is automatic once your system is properly installed and doesn’t require separate application, making it a straightforward benefit that helps maximize your solar savings over time.

Oregon’s Sales Tax Exemption for solar energy systems is actually quite simple – Oregon doesn’t have a general state sales tax at all. This means 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 home battery systems to earn money by sharing stored energy with the grid during peak demand periods. When energy demand is highest (typically during the hottest or coldest days of the year), PGE can remotely discharge your battery to help support the electrical grid, usually 10-15 times per year. You maintain full control over your participation and can opt out of any grid dispatch event.

Participants earn $1.70 per kWh for each Peak Time Event they participate in, with payments appearing as bill credits. You can choose how much of your battery’s capacity to share based on your comfort level, and your battery system will always remain available for backup power during outages – PGE cannot access your battery during power outages as it prioritizes your home’s needs first.

To qualify, you must have one of the approved battery systems: Tesla, SolarEdge, Enphase, Generac, FranklinWH, Duracell, or Eguana. The program is currently a pilot with no mentioned end date, and enrollment appears to be ongoing. Homeowners without qualifying batteries can still participate in PGE’s Peak Time Rebates program by manually programming their batteries during peak events. This program works alongside other incentives like Energy Trust of Oregon rebates and the 30% federal tax credit for battery storage systems.

Net metering in Oregon is a billing arrangement that allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses during sunny periods, that extra energy flows to your neighbors through the utility grid, and you receive credits on your electric bill at the retail rate you normally pay for electricity.

The financial benefit works like a bank account for electricity – you build up credits during sunny days and use them during cloudy periods or at night when your panels aren’t producing power. This means you only pay for your “net” electricity usage (what you used minus what you contributed), which can significantly reduce or even eliminate your monthly electric bill. Most Oregon utilities are required to offer net metering to residential customers with solar systems up to 25 kilowatts in size, though specific program details and availability may vary by utility company. Homeowners should check with their local utility to understand their specific net metering policies, interconnection requirements, and any potential changes to the program structure.