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 qualifying solar energy systems installed on residential properties. There is no cap on the exemption amount, so whether your system adds $15,000 or $30,000 to your home’s value, none of that increase will be subject to property taxes. The exemption continues for as long as you own the solar system and remains at your property.

To qualify, your solar system must be used primarily to heat, cool, or provide electricity for your home. The system must meet local building codes and safety standards. You’ll need to apply for the exemption with your local tax assessor’s office, typically when you file for building permits or shortly after installation is complete.

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 ongoing – you save the sales tax amount (typically 6-10% in other states) on all solar equipment purchases. There are no special eligibility requirements, application processes, or deadlines since this applies to all purchases in Oregon. However, if you’re an Oregon resident purchasing solar equipment from out-of-state retailers, you should be aware that some online sellers may still charge their state’s sales tax, and Oregon law doesn’t allow you to reduce your Oregon taxes because you paid sales tax in another state. For the best savings, consider purchasing your solar equipment from Oregon-based suppliers to ensure you benefit from the state’s no-sales-tax policy.

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 energy demand is highest (typically during the hottest or coldest days of the year), PGE can remotely access 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 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 remains fully available for backup power during outages. To qualify, you must have one of the approved battery systems: Tesla, SolarEdge, Enphase, Generac, FranklinWH, Duracell, or Eguana. The program launched in 2020 and is ongoing, though as a pilot program it may have limited enrollment capacity. Homeowners should note that 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 their system produces. When your solar panels generate more power than your home uses during sunny periods, that extra electricity flows back into the electrical grid. Your utility company then provides you with credits on your electric bill for this excess energy, essentially running your electric meter backwards.

The financial benefit works like a one-to-one credit system – for every kilowatt-hour (kWh) of excess solar energy you send to the grid, you receive a credit worth the same amount as what you would normally pay for electricity from your utility company. These credits can be used to offset your electric bill during times when your solar system isn’t producing enough power, such as at night or during cloudy days. Most Oregon utilities allow you to carry forward unused credits for up to 12 months, helping you maximize your savings throughout the year.

To be eligible for net metering in Oregon, you must have a qualifying renewable energy system (like solar panels) that meets your utility company’s technical requirements and doesn’t exceed certain size limits, typically based on your home’s historical energy usage. The system must be installed by a qualified contractor and pass inspection. While there’s no statewide expiration date for net metering in Oregon, individual utility companies may have specific enrollment periods or capacity limits, so it’s important to check with your local utility provider about their current net metering policies and any potential changes on the horizon.