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’s 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. To qualify, your solar system must be certified and primarily used to heat, cool, or provide electricity for your home. The exemption continues for as long as you own the system and it remains operational, providing ongoing tax savings throughout the life of your solar installation.

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 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 your PGE account. To qualify, you must have one of the approved battery systems from Tesla, SolarEdge, Enphase, Generac, FranklinWH, Duracell, or Eguana. The program operates on a tiered system where you choose what percentage of your battery capacity PGE can access based on your comfort level. There are no mentioned deadlines for enrollment, but this is specifically a pilot program, meaning it may have limited duration or availability.

Important considerations include that PGE cannot access your battery during actual power outages, as your home’s needs take priority. The program also includes technical testing as part of the pilot, though you can opt out of any dispatch event. If you don’t currently have a qualifying battery system, you can work with Energy Trust of Oregon solar installers to purchase and install one, which may also qualify for additional state rebates and the 30% federal tax credit.

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 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. To be eligible, you typically need to have a solar energy system that meets your utility’s interconnection requirements and safety standards. Most residential solar installations qualify, but you’ll need to complete an interconnection application with your utility company before your system can be connected to the grid and begin net metering.