Corvallis, OR Solar Panels

Oregon’s Property Tax Exemption for alternative energy systems allows homeowners to avoid paying property taxes on the added value that a renewable energy system brings to their home. When you install a qualifying solar, wind, geothermal, or other alternative energy system, the increased market value it adds to your property is exempt from property taxation. This means your property tax bill stays the same as it was before installation, even though your home is now worth more.

To qualify for this exemption, your 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. Eligible systems include solar panels (photovoltaic), solar heating and cooling systems, geothermal heat pumps, wind turbines, micro-hydropower systems, fuel cells, and methane gas systems. The exemption applies to all components that add value to your property, including panels, inverters, mounting systems, batteries, and related equipment. However, structures like porches, sunrooms, solariums, and greenhouses typically don’t qualify for the exemption. There are no specific deadlines mentioned in the program rules, and the exemption continues as long as the system remains in place and operational.

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 equipment or installation. Unlike residents in most other states who must pay sales tax (typically 4-8% of the total system cost) on solar purchases, Oregon homeowners automatically avoid this expense. For a typical residential solar installation costing $20,000-$30,000, this represents an immediate savings of $800-$2,400 compared to what homeowners in sales tax states would pay.

This benefit applies automatically to all Oregon residents purchasing solar systems—there are no applications to file, income requirements to meet, or eligibility restrictions. Since Oregon has never had a general sales tax, this advantage is permanent and not subject to expiration dates or legislative changes. However, Oregon homeowners should be aware that if they purchase solar equipment from out-of-state vendors, those vendors may initially charge their state’s sales tax. In such cases, you can provide the Oregon Business Registry Resale Certificate to the seller, though out-of-state vendors are not required to accept it. The absence of sales tax makes Oregon one of only five states where solar purchasers enjoy this automatic cost advantage.

PGE’s Smart Battery Pilot is a utility program that rewards Oregon homeowners for allowing their home battery systems to support the electrical grid during peak demand periods. When you enroll, PGE can charge or discharge your battery during high-stress times on the grid—typically 10 to 15 times per year during the hottest or coldest days. You maintain full control over how much energy you share, and your battery always remains available for backup power during outages.

The program pays $1.70 per kWh of battery capacity you make available during each Peak Time Event. You choose your participation level based on what percentage of your battery’s total capacity you’re comfortable sharing. These rewards come as bill credits for each event you participate in, and you can opt out of any scheduled dispatch at any time.

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 battery systems are eligible. If you’re installing a new battery, you may qualify for cash incentives through Energy Trust of Oregon, with higher amounts available for income-qualified households. PGE will not use your battery during actual outages, as your home’s backup power needs always take priority.

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 power than your home uses—typically during sunny midday hours—your electric meter essentially runs backward, and you earn credits on your utility bill. These credits can then 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, specific details about Oregon’s current net metering rates, eligibility requirements, and program terms are not available at this time. Net metering policies can vary by utility company and may include factors such as system size limits, credit rates, and how long credits can be carried forward. We recommend contacting your local utility provider directly to learn about the specific net metering program available in your area, including the financial benefits you can expect and any requirements you’ll need to meet to participate.